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Nearly 160,000 firms established nationwide in 2023

The Saigon Times

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HCMC – A total of nearly 160,000 firms have been established across Vietnam in the year to date, up 7.2% compared to the figure last year, according to the Business Registration Management Agency.

The number of businesses that have resumed their operations has exceeded 58,400.

In total, more than 200,000 businesses have been either newly established or reactivated in 2023, up by 4.5% versus the previous year. This number is 1.3 times greater than the number of businesses that have exited the market during the same period.

Several sectors have experienced a significant increase in the establishment of new businesses, notably in education and training, wholesale and retail, automobile and motorcycle repair, employment services, and tourism.

The overall registered capital of newly established businesses amounts to just over VND1.52 quadrillion, a 4.4% decline over last year.

This year has seen 172,500 firms pulling out of the market, a 20.5% year-on-year increase. This is the highest number recorded since 2017. In December alone, 14,355 businesses have withdrawn from the market, a surge of over 26% over the previous year.

More than half of the existing businesses have opted for temporary suspension while around 10% have permanently terminated their activities.

The reasons for business exits include inefficient operations, market volatility, lack of capital, and increased production costs.

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