HÀ NỘI — Việt Nam 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 per cent 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 VNĐ928.4 trillion (US$35.4 billion), up 10.6 per cent in number and 5.5 per cent in capital compared with the same period last year.

Notably, additional capital injected into the economy exceeded VNĐ3.3 trillion (nearly $127 million), surging 93.7 per cent. 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 per cent year-on-year. Wholesale and retail trade and manufacturing also recorded increases of 16.8 per cent and 19.6 per cent 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 per cent from June, registered capital down 33.6 per cent, and average start-up capital shrinking 15.6 per cent year-on-year to VNĐ7.1 billion.

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 per cent), 41,500 awaited dissolution (up 16.7 per cent), and 14,300 completed dissolution (up 20.5 per cent).

The construction sector was the hardest hit, with new businesses down 16.8 per cent. Manufacturing showed resilience with a 19.6 per cent increase in new firms, while dissolved companies in accommodation and food services surged 35.6 per cent, 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 have 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. — VNS