Number of enterprises resuming operations up in 10M

Certain sectors saw higher growth than others, such as education and training with 64.7%, arts, entertainment and recreation 63.4%, accommodation and food services 51.7%, manufacturing 47.3%, wholesale and retail trade and repair of automobiles, motorbikes and other motor vehicles 40.4%, real estate 39.7%, transportation and storage 38.6%, professional, scientific and technical activities 37.1%, finance, banking and insurance 36.4%, employment services, travel, equipment rentals, and supplies 36.3%, and mining and quarrying 33.7%.

The increasing number of enterprises resuming operations is evidence that Vietnam’s economy is recovering. The Nikkei manufacturing Purchasing Managers’ Index (PMI) climbed from 52.2 in August to 52.9 in September; a 16-month high and reflecting a healthy increase in employment and robust expansion in manufacturing output and new orders, according to HSBC's October update.

Manufacturing output increased for the tenth straight month and at the highest pace for three months. “Importantly, employment grew at the fastest pace in five and a half years, as firms responded to a sustained growth in new orders,” the HSBC update wrote. “New export orders also grew at a faster pace than in August.

The fact that firms accumulated inventory suggests that manufacturers remain optimistic about business conditions.”

In the first ten months there were also 17,574 enterprises registering for temporary suspension of operations, an increase of 29% against the same period of 2015. 

There were 29.8% fewer enterprises year-on-year that had registered capital of less than VND10 billion (US$448,400).

There were 33,131 enterprises that suspended operations without registering or waiting for their tax code to be cancelled, down 28.8% year-on-year. Those with registered capital of less than VND10 billion (US$448,400) accounted for 92%. 

Enterprises in agriculture, forestry and fishery, mining and quarrying, manufacture and the distribution of electricity, water, and gas, and Others declined in number compared to the same period last year.

There were 9,295 enterprises completing dissolution procedures and closing in the first ten months, up 21.6% year-on-year. 

Numbers fell in information and communications, mining and quarrying, and manufacturing and distributing electricity, water, and gas.