New firms surge on stronger confidence

New firms surge on stronger confidence

Việt Nam saw a strong increase in new business registrations and reactivations in the first nine months of this year, reflecting improving economic sentiment on manufacturing and services sectors’ recovery.

Production at Sunjin AT&C Vina in Huế. Around 231,300 were established or resumed operations in January – September, representing a year-on-year increase of 26.4 per cent.. — VNA/VNS Photo Vũ Sinh

Việt Nam recorded a sharp rise in new business registrations and reactivations in the first nine months of this year, signalling renewed economic confidence and a steady recovery in the manufacturing and services sectors.

According to the General Statistics Office (GSO), around 231,300 businesses were established or resumed operations between January and September, a 26.4 per cent increase year-on-year.

Of these, 145,000 were newly founded, up 18.9 per cent, while 86,400 resumed operations, a rise of 41.3 per cent.

In September alone, 16,800 new firms were registered, up 49.8 per cent compared to the same period last year, and 10,700 reactivated, up 65.7 per cent.

Despite the positive growth, business closures remained significant, with an average of 19,400 firms leaving the market each month. Around 99,500 businesses temporarily suspended operations, an increase of 14.5 per cent, while 53,200 applied for dissolution, down 13.5 per cent. Meanwhile, 22,300 completed the dissolution process, up 45 per cent.

A separate GSO survey on business trends found that 33.6 per cent of manufacturing and processing firms reported improved performance in the third quarter compared to the previous one. Another 44.2 per cent said business remained stable, while 22.2 per cent continued to face difficulties.

Looking ahead, over 40 per cent of surveyed firms expect stronger results in the fourth quarter, 41.7 per cent anticipate stability, and 17.4 per cent foresee more challenges. 

Bizhub