Newly opened firms mushroom during new normal

Workers making furniture at a Woodland's factory

Hanoi - The number of newly established firms reached an all-time high of around 15,000 in April, with total registered capital of 164.1 trillion VND (7.1 billion USD), according to the General Statistics Office (GSO).

The number of re-opened firms was 7,034, up 22.4 percent year-on-year.

Meanwhile, 5,391 firms temporarily ceased operation, 3,762 were in the dissolution process, and 1,227 completed dissolution procedures.

In total, the number of firms entering the market was double the number of those withdrawing from the market in April.

Vietnam saw 49,591 newly-formed firms in the first four months of 2022, with total registered capital of 635.3 trillion VND, around 12.3 percent higher than the figure in the same period last year.

The GSO underlined the proliferation of new businesses as a sign of economic recovery, indicating that supportive policies of the Government and National Assembly have been on the right track and begun to take root.

According to the European Chamber of Commerce (EuroCham) report, the Business Climate Index in Vietnam has reached its peak at 73 points since the fourth wave of the pandemic hit the country last April.

The index is expected to sustain its upward trend next quarter with a more optimistic outlook from the business sector, notably from tourism firms, which began to pick up after the reopening in March.

The report, which surveyed over 1,000 firms, also found that two-thirds of firms are upbeat about the growth prospect of the economy in Q2.

"Over half EuroCham's members have plans to take on more staff. Some hotels have their rooms fully booked for the first time in the past three years. It's time to restore the economy to the pre-pandemic levels," said Alain Cany, chairman of EuroCham in Vietnam.

The GSO's socio-economic report in March showed that 50 percent of Vietnamese firms have a positive outlook for the economy in Q2, 32.3 percent a stable outlook, and 17.7 percent a negative outlook.