Vietnam Business Formation in January Jumps, but Suspensions Highlight Strain

Vietnam business formation January data showed a surge in activity as nearly 24,200 new firms were registered and more than 24,500 businesses resumed operations, signalling improving confidence as the economy recovers, official data showed.

Total registered capital for new firms rose to VND180.9tr (USD7.1tr), while registered employment increased to about 108,200, the National Statistics Office said.

However, average capital per newly formed company fell to VND7.5bn, and additional capital injected by existing firms slipped from a year earlier.

Signs of strain persisted as almost 54,300 businesses registered temporary suspensions, while over 7,300 halted operations pending dissolution, and 4,609 completed dissolution, the data showed.