"Sweet fruits" from resolutions on private economic development

Ms. Phi Huong Nga, Head of the Department of Industrial and Construction Statistics (Department of Statistics, Ministry of Finance )

Contrary to many previous times, since the beginning of the year, the number of businesses entering the market has been greater than the number withdrawing, madam?

The number of businesses entering the market exceeded the number of exits, reaching a record high in the first 7 months of the year. This result was achieved thanks to the continued growth of industrial production. In July 2025, the Index of Industrial Production (IIP) increased by 8.5% compared to the same period last year. This index is even more significant when it increased on the high base of July 2024 (up more than 11%).

July 2025 is also the first month after the merger of provinces and cities, the IIP of some localities with large industrial scale has increased sharply compared to the time before the merger (June 2025) such as Vinh Long increased by 4.5%; Quang Ngai increased by 3.7%; Dong Nai increased by 3.5%; Ho Chi Minh City increased by 3.4%...

Thanks to maintaining a high growth rate in July, the IIP increased by 8.6% in the first 7 months of this year, of which the processing and manufacturing industry increased by 10.3% (increased by 9.6% in the same period in 2024). Since the beginning of the year, among the 16 key industrial groups, except for the crude oil and natural gas exploitation industry, which has not escaped the continuous decline; the pharmaceutical, chemical and medicinal materials manufacturing industry decreased by 4.9%, while the remaining industries have grown.

There are industries with impressive growth such as food processing increased by 10%; garment manufacturing increased by 14.5%; leather and products increased by 15.4%; rubber and plastic products increased by nearly 17%; electronics, computers, and optics increased by about 8%... In particular, the motor vehicle manufacturing and assembly industry increased by nearly 30%, and television increased by more than 21%.

In fact, businesses entering the market are mainly in the fields of trade, services, and auto and motorbike repair?

Although the number of enterprises operating in the industrial and construction sectors accounts for less than 25% of the total number of operating enterprises (the rest are services and trade), it is the driving force for enterprises in the trade and service sectors to enter and re-enter the market.

In the first 7 months of 2025, 107,700 enterprises registered for new establishment and 66,300 enterprises returned to operation, bringing the total number of enterprises entering and re-entering the market to a record number - about 174,000 units, up 23% over the same period in 2024. During the same period, 144,400 enterprises left the market, so since the beginning of the year, there have been 29,600 more enterprises operating, contrary to many previous times, the number of enterprises leaving the market was greater than the number entering and re-entering.

Is the "startup wave" an inevitable consequence of policies and strategies for private economic development?

The past few months have witnessed an unprecedented breakthrough in the business community and business households, with the spirit and confidence of the business community rising higher than ever. This is an inevitable consequence of the policies and mechanisms issued in Resolution 68/NQ-TW on private economic development; Resolution 198/2025/QH15 on a number of special mechanisms and policies for private economic development; Resolution 138/NQ-CP and Resolution 139/NQ-CP implementing the Party and National Assembly's policies and viewpoints on private economic development, considering the private economy as the most important driving force for socio-economic development.

The strong wave of startups among the business community and business households is a sign that policies to support private economic development have begun to come into effect, truly promoting efficiency, permeating the economy, and arousing the entrepreneurial spirit of the majority of Vietnamese people.

The number of businesses “leaving the game” is also very large. How do you explain this phenomenon?

Since the beginning of the year, about 144,400 businesses have withdrawn from the market. This is a very worrying number from within the economy, although of these, 88,600 units (accounting for about 61%) have only temporarily suspended business to restructure their operations.

The number of businesses that have stopped or temporarily suspended operations shows that the resilience of businesses is still weak, especially small and micro businesses. Many businesses do not have enough financial capacity, lack risk reserves, are vulnerable to fluctuations such as increased input costs, decreased consumer demand, or cannot adapt to policy changes.

The large number of businesses leaving the market shows that although the business environment has improved, there are still many barriers, such as complicated administrative procedures, difficult access to capital, high costs of renting premises, and heavy logistics. These factors increase the operational burden, making businesses more likely to falter.

The number of businesses that have stopped or temporarily suspended operations is even higher than the number of newly established businesses (144,400 compared to 107,700), reflecting increasingly fierce competition in the market, both in the domestic and export markets. Businesses that have not had time to innovate technology, transform digitally or do not have a long-term strategy are easily eliminated from the "game".

In fact, only about 39% of businesses "never return", 61% only temporarily suspend business, madam?

Fortunately, about 61% of businesses only temporarily suspended operations, and after the suspension period ended, a very high number of businesses returned to operation. This reflects the cautious, wait-and-see mentality of business owners. Many businesses proactively temporarily suspended operations to wait for the market to recover, or for clearer business opportunities to return to operation.

This trend shows that businesses are calculating and considering in operating their business activities to minimize risks, which if prolonged will negatively affect the scale and vitality of the economy.

The phenomenon of enterprises dissolving and temporarily ceasing business operations remains high, which is a warning sign of limitations in the internal capacity of the business sector and problems existing in the business environment, which need to be taken seriously in order to have timely and effective solutions.

The business picture also reflects that industrial production activities have not recovered firmly. Although growth has recovered, it is slow and uneven. Some industries such as electronics, textiles, footwear, wood processing, etc. still recorded high growth, but are starting to show signs of running out of steam due to stagnant orders and price competition from other countries.

Business performance also reflects the fact that domestic consumption has not recovered strongly and there is still a cautious mentality. People tend to change their consumption habits due to concerns about inflation and unstable income recovery. Spending on total retail sales and consumer services, although positive, is not strong enough to create a driving force that spreads to the entire economy.

Source: https://baolamdong.vn/qua-ngot-tu-cac-nghi-quyet-phat-trien-kinh-te-tu-nhan-387833.html