Number of firms established in 2023 record high

The figure is 1.2 times the average level for 2017-2022, according to the ministry’s Business Registration Management Agency.

Additionally, 2023 saw the resurgence of over 58,400 enterprises that had previously ceased operations. This brings the total count of new and revived businesses to approximately 217,700, a 4.5% rise from 2022. This number is 1.3 times higher than the total of firms exiting the market in 2023.

Industries with a sharp increase in the number of newly-established businesses include education and training, wholesales, retails, car and motorbike repair, employment services, and tourism.

The total registered capital of newly-established enterprises surpassed VND1,520 trillion (US$63.3 billion), dropping 4.4%.

A total of 172,500 businesses withdrew from the market in 2023, the highest number since 2017, and up 20.5% against 2022.

Over half of the 172,500 businesses chose to temporarily suspend operation in the short term, and only 10% completed dissolution procedures.

The main reasons for the dissolution were ineffective production and business, reduced orders, market’s fluctuations, firms’ failure in adjusting organizational structure, capital shortages and increased input costs.