Hanoi (VNA) – Vietnam saw a strong rise in business formation and resumption in the first seven months of 2025, with 174,000 enterprises newly established or returning to operations, up 22.9% year-on-year, according to the National Statistics Office (NSO) under the Ministry of Finance.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Notably, additional capital injected into the economy exceeded 3.3 trillion VND (nearly 127 million USD), surging 93.7%. This reflects not only the dynamism of new enterprises but also the expansion drive among existing ones.
The services sector remained the main growth engine, accounting for 83,200 new enterprises, up 13.1% year-on-year. Wholesale and retail trade and manufacturing also recorded increases of 16.8% and 19.6% in the numbers of new businesses, respectively, underscoring the resilience of key economic pillars.
However, July marked a setback, with the number of new businesses falling 32.3% from June, registered capital down 33.6%, and average start-up capital shrinking 15.6% year-on-year to 7.1 billion VND.
This slowdown came alongside high market exits. In the first seven months, 144,400 enterprises suspended operations, awaited dissolution, or closed permanently, averaging 20,600 firms a month, nearly matching new market entrants. Of these, 88,600 temporarily suspended operations (up 13.6%), 41,500 awaited dissolution (up 16.7%), and 14,300 completed dissolution (up 20.5%).
The construction sector was the hardest hit, with new businesses down 16.8%. Manufacturing showed resilience with a 19.6% increase in new firms, while dissolved companies in accommodation and food services surged 35.6%, revealing fierce competition even in vibrant sectors.
The Ministry of Finance has urged actions to remove institutional bottlenecks, improve access to land and resources, streamline procedures, and strengthen support for SMEs and household businesses, including tax incentives, financing, and infrastructure assistance.
Experts cautioned that global economic uncertainties and rising competition will require flexible strategies, leveraging on supply chain shifts and domestic demand to maintain sustainable growth in 2025./.
