Rise in numbers of firms, employees in FDI and non-state sectors

In 2020, the non-state sector accounted for 96.4% of Vietnam's total businesses, a 35.1% increase from 2016. The sector attracted 8.6 million employees, or 58.6% of the nation's workforce, showing an increase of 0.4% from 2016.

Meanwhile, the FDI sector had the highest rate of growth in the number of businesses and a growing proportion of the total number of jobs created. There were 22,200 foreign-funded businesses, which represented 3.3% of all businesses and increased by 58.8% from 2016. They employed 5.1 million employees, accounting for 34.6% of the labor force, an increase of 22.5% from 2016.

Rise in numbers of firms, employees in FDI and non-state sectors.

During this five-year period, the state-owned sector experienced continuous declines as a result of the government's equitisation and reorganization policies. Its total number of firms stood at 1,963 in 2020, or 0.3% of the total, a decrease of 26.3% from 2016. One million people were hired this year, making up 6.8% of the workforce, a 21.8% decrease from 2016.

State-owned enterprises had the largest scale as of December 31, 2020, with about 512.4 employees, followed by FDI enterprises with 228.9 employees. Private businesses had an average of 13 employees.

Additionally, the Red River Delta and Southeast region, which are home to the two largest economic hubs in the nation - Hanoi and Ho Chi Minh City - saw a rapid increase in the number of businesses and workers. As of December 1, 2020, 281,100 businesses were registered in the southeast, accounting for 41.1% of all businesses in Vietnam, showing an increase of 32.2% from 2016. After five years, the Red River Delta region registered 216,800 businesses, increased 31.7%.

Enterprises have continued to receive both domestic and foreign investments at a rapid rate of growth. The scale of businesses has increased primarily due to the capital factor rather than the labor factor, with non-state businesses luring the most capital.

The census covered businesses, household production and trade establishments, non-business establishments, associations, and religious establishments. It also had a broad scope and complex content.