'Decoding' the reason why newly established businesses increased sharply in the first quarter

Speaking at the regular Government press conference in April 2025 on the afternoon of May 6 in Hanoi, Deputy Minister of Finance Tran Quoc Phuong said that through the data, it can be affirmed that the situation of new business registration as well as businesses returning to operation in the first months of 2025 is very positive.

Specifically, the first quarter of 2025 reached 36,400 enterprises, equivalent to 2024. However, compared to the previous period (2017 - 2023), it increased by about 1.2 times. In particular, the registered capital of newly established enterprises also increased, up about 1.5% compared to the same period in 2024.

Explaining the explosion in new business registrations and businesses returning to operation in the first quarter of 2025, Deputy Minister Tran Quoc Phuong said there are four main reasons.

Deputy Minister of Finance Tran Quoc Phuong.

Firstly, businesses have better confidence in Vietnam's production and business environment as well as the economic growth prospects of our economy. The economy is increasingly consolidated and improved, reflected in the results, especially through the direction and administration of the Government and the Prime Minister.

This belief is also greatly influenced and affected by ongoing processes in the economy such as the process of perfecting the legal system in 2024 and the first months of 2025 as well as at the 9th Session of the National Assembly.

"This shows that institutional innovation has created great confidence in the business community in openness to removing difficulties and obstacles in legal regulations to promote production and business," the Deputy Minister acknowledged.

Second, businesses have confidence in the leadership and management decisions of the Party, the State, the Government, and the Prime Minister in resolving difficulties of currently stuck projects. This is very important because projects are waiting for specific solutions to resolve and continue operations. New investors and large projects have confidence in the State's policies and the efforts of the Government and the Prime Minister.

Third, the economic growth prospects through the Party and State's policies such as the determination to achieve 8% economic growth in 2025 and the orientation for double-digit growth in the coming years. This is a great determination of the Party and State. Along with that is a series of solutions and policies that can further strengthen the confidence of businesses and investors.

Fourth, a very important factor is that the Politburo recently issued Resolution No. 68-NQ/TW on promoting private economic development. The Resolution clearly shows the Party's major policy in developing the private economic sector, attaching importance to the role of the private economic sector in the economy.

Figures recently released by the General Statistics Office (Ministry of Finance) show that in April, the country had more than 15,200 newly established enterprises, down 2.5% compared to the previous month and up 7.4% compared to the same period last year.

In addition, nationwide, more than 7,180 enterprises registered to temporarily suspend business for a period of time, up 63.6% compared to the previous month and down 5.7% compared to the same period in 2024; nearly 9,000 enterprises stopped operating pending dissolution procedures, up 83.5% and up 93.1%; 1,750 enterprises completed dissolution procedures, down 18.1% and up 37.4%.

In the first four months of 2025, the country had more than 89.9 thousand newly registered and resuming operations, up 9.9% over the same period last year. On average, nearly 22.5 thousand newly established and resuming operations per month. The number of enterprises withdrawing from the market was 96.5 thousand, up 12.2% over the same period last year. On average, more than 24.1 thousand enterprises withdrew from the market per month.

Minh Thu

Source: https://doanhnghiepvn.vn/doanh-nhan/-giai-ma-ly-do-khien-doanh-nghiep-moi-thanh-lap-tang-manh-trong-quy-i/20250506055104725