The country recorded 54,932 enterprise bankruptcies in the first eleven months of this year, 8 percent higher than the previous year, according to statistics issued by the Ministry of Planning and Investment.

There were nearly 6,800 newly-established enterprises in October with the total registered capital of VND37.6 trillion. This figure shows a 15 percent increase in terms of the number of businesses joining the market, but a 7 percent decrease in the capital volume compared to September.

During the eleven-month period, Vietnam recorded more than 71,000 new enterprises with the total registered capital of VND359.5 trillion, meaning an increase of 10 percent in terms of the number of businesses, but a 15 percent decrease in the capital volume compared to the same period last year.

The industry sector continued to see growth in November with the nation's Index of Industrial Production (IIP) increasing 5.7 percent over the same period last year. The IIP in the production and distribution of electricity rises over 8 percent while the IIP in the mining industry continues to decrease.

Vietnam IIP’s cumulative figure in the first eleven months sees an increase of 5.6 percent compared to the same period last year.

Overseas demand to bounce back

The Hong Kong and Shanghai Banking Corporation (HSBC) released its Vietnam Manufacturing PMI (Purchasing Managers’ Index) in November 2013, which was 50.3, down from 51.5 in October.

“The slowdown of growth of the manufacturing sector reflects weakness of demand abroad. The rise of headcount and quantity of purchases suggest that the outlook is rather optimistic,” said Trinh Nguyen, Asia Economist at HSBC when commenting on the latest Vietnam Manufacturing PMI survey.

“We expect demand from abroad should bounce back after a slump in November, although the pace of growth should still be modest due to lacklustre domestic demand. With price pressures easing thanks to weaker commodity prices, manufacturers should feel reprieved,” she said.

Manufacturing output also increased with the rate of growth the highest recorded since September 2011. The production was raised to help deal with higher volumes of new orders seen during September and October.

HSBC’s November survey also indicated that volumes of new orders fell for the first time in three months. There was evidence that poor weather which led to some flooding also resulted in reduction in new orders.