Vietnam's fresh policies lead to record-breaking surge in new businesses

A record number of newly established businesses in Vietnam reflects growing business confidence, driven by a wave of government policies promoting private sector development.

More than 24,400 businesses registered for establishment in June alone, a record high and double the figure for the same period between 2021 and 2024, creating a surge of optimism in the business community.

In total, nearly 91,200 new businesses were set up nationwide in the first six months of 2025.

   A boost in business confidence

According to the Department for the Development of Private Enterprises and Collective Economy in the Ministry of Finance, not only did new business registrations skyrocket, but the number of businesses returning to the market also surged.

In June, 14,390 businesses resumed operations, an increase of over 91 percent compared to June 2024. In total, approximately 61,500 businesses resumed operations in the first half of the year, up 57.2 percent year on year.

Notably, the number of newly registered household businesses in June also jumped 118.4 percent compared to the same period last year and rose 60.3 percent from May.

Trinh Thi Huong, deputy general director of the Department for the Development of Private Enterprises and Collective Economy, noted the number of businesses entering and re-entering the market in the first half of the year exceeds the number of businesses exiting.

"This shows that the business community's confidence in economic recovery and growth prospects is being strongly reinforced," Huong remarked.

The additional capital contributed by active enterprises rose more than 170 percent compared to the same period in 2024, further reflecting increased confidence, new business opportunities, and a promising market outlook.

To sustain this growth momentum, the Ministry of Finance has pledged to accelerate administrative reforms and simplify regulations related to business and production activities.

In parallel, the ministry proposes advancing green and circular economies, supporting e-commerce, and helping businesses adopt AI technologies and digital transformation.

   Resolution No. 68 brings new energy

Dr. Nguyen Quoc Viet, former deputy director of the Institute for Economic and Policy Research, said that the surge in numbers reflects excitement in the business community following the release of Resolution No. 68 on private sector development by the Party.

"This resolution emphasizes the role of the private sector and supports its development in fields like innovation, the circular economy, and the green economy," Dr. Viet explained.

In addition, many individuals and household businesses have realized that upgrading to formal business status provides advantages in terms of financial transparency, accounting, and tax compliance.

The service and tourism sectors have also seen an increase in new business formations, driven by a rise in international tourist arrivals.

Dr. Can Van Luc, chief economist at the Bank for Investment and Development of Vietnam (BIDV), emphasized that Resolution No. 68 is the main driver encouraging household businesses to convert, in order to take advantage of incentives like a three-year tax exemption, access to financial resources and accounting software, and director training.

Dr. Vo Tri Thanh, president of the Institute for Brand and Competitiveness Strategy, added that such policies supporting private sector development act as 'a new wave of energy' pushing this sector forward.

However, Dr. Viet warned that this dramatic growth may not be sustainable, noting that in the first five months of the year, the number of new businesses was nearly equal to those closing down. Domestic consumption demand, though recovering, remains fragile and below expectations.

   Positive outlook for the rest of the year

Looking ahead, Dr. Viet hopes that stronger economic growth in Q2 compared to Q1 will open up new business opportunities, spurring investment expansion and a continued rise in newly established businesses.

A survey of more than 30,400 businesses in Q2 showed that 74.6 percent assessed their business and production activities as improved or stable compared to Q1, while only 25.4 percent reported more difficulties.

Resolution No. 68 has helped create a business environment that is more open, transparent, stable, cost-effective, and internationally competitive.

Only 3.3 percent of the businesses cited legal and regulatory frameworks as obstacles, and just 1.7 percent reported energy shortages for production.

Nonetheless, businesses continue to face challenges related to both inputs and outputs.

On the output side, low domestic demand and fierce market competition remain the two most pressing issues.

On the input side, rising costs for raw materials, fuel, logistics, and warehousing are creating significant burdens.

In particular, 16 percent of the businesses stated that loan interest rates remain high.

Many have proposed that the government further reduce lending rates and land rental fees, and implement price stabilization policies for raw materials and energy.

   6 measures proposed to support businesses

The General Statistics Office has proposed six key solutions to ease business difficulties:

- Boost domestic consumption through digital platforms and e-commerce

- Promote exports and tap into global markets

- Improve the investment environment, shifting from pre-inspection to post-inspection

- Reduce business costs via tax and fee relief policies

- Accelerate progress on key infrastructure projects

- Launch programs to support innovation and digital transformation for enterprises

Bao Ngoc - Kim Thoa / Tuoi Tre News

(2025/07/07-17:27)