Vietnam sees strong business formation amid high market exits in January–August

Vietnam recorded nearly 138,100 newly established businesses and nearly 68,300 businesses that resumed operations during January–August, bringing the total number of businesses entering or re-entering the market to nearly 206,400, down 1.4 percent year on year.

That means an average of about 25,800 businesses entered or re-entered the market each month during the period.

At the same time, more than 88,000 businesses temporarily suspended operations, nearly 28,600 ceased operations pending dissolution and more than 40,800 completed dissolution procedures.

An average of nearly 19,700 businesses a month fell into one of these categories.

The number of businesses completing dissolution procedures rose 125.5 percent year on year.

The wholesale and retail trade sector, and automobile and motorcycle repair, recorded the highest number of businesses completing dissolution procedures, at more than 15,400, up 133.5 percent year on year.

Other sectors also saw sharp increases, including processing and manufacturing, with more than 4,400 businesses completing dissolution procedures, up 123.8 percent; construction, with more than 3,100, up 141.6 percent; and real estate, with more than 2,300, up more than 135 percent.

The transportation and storage sector recorded more than 1,600 businesses completing dissolutions, up 135.4 percent, while accommodation and food services had about 2,000, up 117 percent.

Despite the high number of businesses leaving or suspending operations, several sectors recorded strong growth in new business formation.

The number of newly established businesses in construction rose 40 percent year on year, while the number of new electricity, water and gas production and distribution companies increased by more than 60 percent.

The number of newly established businesses in transportation and storage rose 29.4 percent, while those specializing in accommodation and food services increased 32 percent.

Separate data from the Department of Taxation showed that more than 156,400 businesses were issued new tax identification numbers during January–August, while more than 23,000 businesses and organizations filed applications to terminate their tax identification numbers.

Based on completed procedures, the number of businesses entering the market was 6.8 times the number completing procedures to terminate their tax identification numbers during the period.

According to Mai Son, deputy director of the Department of Taxation, the ratio was about six to one in 2024 and 4.5 to one in 2025.

Tax authorities collected VND1.793 quadrillion (US$68.6 billion) in state budget revenue during the period, equivalent to 79.9 percent of the full-year target and up 16.7 percent year on year.

The government has continued to introduce measures to support businesses. Tax and land-rent support totaled about VND178.2 trillion ($6.8 billion) in 2024 and VND229 trillion ($8.8 billion) in 2025.

Under current policy, household businesses and ultra-small enterprises are eligible for a 30-percent reduction in personal income tax and corporate income tax in 2026–27.