Hanoi: Capital of newly established businesses increased by over 53%.

Photo caption — The location for business registration procedures at the Business Registration Office ( Hanoi Department of Planning and Investment). Photo: Danh Lam/TTXVN

According to a report by the Hanoi Department of Planning and Investment, in May 2025, the city issued registration certificates to 2,283 newly established businesses. Although this was a 19.5% decrease compared to the same period last year, the registered capital reached VND 33.7 trillion, a sharp increase of 53.3%. During the same period, 700 businesses resumed operations, a 13.6% increase; while 1,489 businesses temporarily ceased operations and 399 businesses were dissolved.

In the first five months of the year, the city recorded 11,600 newly established businesses with a total registered capital of VND 106.7 trillion, a decrease of 7.2% in number and 9.7% in capital compared to the same period last year. The number of dissolved businesses increased by 26.6%, indicating that significant pressure continues to weigh on the business sector, especially small and medium-sized enterprises.

Alongside business development, Hanoi continues to implement a comprehensive set of credit policies to support production and business activities. In May 2025, the State Bank of Vietnam maintained the policy interest rate while directing commercial banks to flexibly adjust interest rates downwards. Short-term lending rates for priority sectors remained low, averaging 3.9% per year, lower than the regulated ceiling of 4%.

As of May 31, 2025, the total mobilized capital of credit institutions in the area reached VND 6,272 trillion, an increase of 3.51% compared to the end of 2024. Outstanding loans reached VND 4,881 trillion, an increase of 8.32%; of which, short-term loans increased by 10.51%, indicating that credit is focusing on supporting short-term production and business activities. Priority sectors such as small and medium-sized enterprises, rural agriculture , exports, supporting industries, and high-tech applications continue to receive priority funding.

However, according to feedback from many industry associations, businesses in the area are still facing many difficulties. Factors such as rising input costs, debt repayment pressure, consumer demand not recovering as expected, and credit access procedures, although improved, are still complicated... are slowing down the recovery of the manufacturing sector.

Some proposals aimed at promoting sustainable business development in 2025 include: continuing administrative procedure reforms, especially loan procedures; expanding preferential credit programs for small and medium-sized enterprises; enhancing the capacity to advise and support businesses in digital transformation and green transformation; and strengthening the connection between labor supply and demand to meet market needs.

In the coming period, Hanoi has determined that business development will be closely linked to improving credit efficiency and addressing real difficulties for the production sector. The city government is committed to supporting businesses, continuing to refine support mechanisms and policies, and creating a favorable, transparent, and stable investment and business environment for sustainable business development.

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