Vietnam witnesses a 11.3% increase in new and reactivated businesses over a span of five months.
Bustling Business Boom in Hanoi, Vietnam
Hey there! Let's talk about the sizzling business scene in Hanoi, Vietnam. Things are heating up, and new enterprises are popping up like wildfire!
According to the National Statistics Office (NSO), Vietnam witnessed a staggering 111,800 businesses entering or returning to the market from January to May 2025. This represents an impressive 11.3% year-on-year increase! That's about 22,400 businesses every month.
May took the crown, with over 15,100 new enterprises setting up shop and bringing in a total of VNĐ156.7 trillion (approximately US$6.02 billion) in registered capital. Roughly 98,100 workers also joined the workforce. Although the number of new firms and employment saw a slight dip compared to April, the registered capital surged by a noticeable 17.3%.
Compared to May 2024, last month posted some impressive growth numbers. The number of new enterprises increased by 6.1%, registered capital grew by 16.6%, and employment jumped by 29.3%. The average capital per business reached VNĐ10.4 billion, a surge of 18% month-on-month and 9.9% year-on-year.
Moreover, around 8,000 businesses resumed operations in May, witnessing a drop of 11.1% from April but still showing a substantial 18.8% growth compared to the same month last year.
Over the first five months, nearly 66,800 new enterprises were licensed, representing a modest 0.6% year-on-year increase. These firms created some 453,900 jobs and accumulated VNĐ647.1 trillion in total registered capital, up 6.2%.
A notable trend is the additional capital pumped into the economy, which reached almost VNĐ2.28 quadrillion over the period, registering a significant year-on-year jump of 83.8%. This indicates robust investment expansion among existing businesses.
It's also worth mentioning that businesses resuming operations during the five months also surged, totaling more than 45,000, up 32.2% from the same period last year.
The service sector led the charge, with nearly 50,900 new businesses (up 2%). The industry and construction sector saw over 15,200 new firms (a decline of 3.9%), and the agriculture, forestry, and fisheries sector counted 627 new entrants (down 1.7%).
However, despite the positive growth, business closures also rose. In the first five months, nearly 74,600 enterprises temporarily suspended operations (up 12.8%), over 27,500 were in the process of dissolution (up 18.3%), and nearly 9,600 completed dissolution procedures (up 15.7%). This means approximately 22,300 businesses left the market each month. The NSO noted that this trend reflects a dynamic and competitive business landscape.
As for the digital front, the government is pushing for digitalization in the tax system. By 2026, nearly 2 million business households are expected to adopt e-invoices through POS systems, aiming to enhance transparency and reduce tax evasion[5].
Vietnam's GDP grew by 6.93% in Q1 2025, showing a slight slowdown due to external factors like trade tensions[2]. The government aims for an 8% GDP growth rate for the year[2]. The retail sector is expected to continue growing, driven by increased consumer spending and supportive government policies[1].
Đại Đồng Tiến plastic company. In May alone, over 15,100 new enterprises were set up, registering a total capital of around US$6.02 billion. - VNA/VNS Photo
E-commerce is booming, with taxes collected from e-commerce increasing by 55% year-over-year to reach VNĐ75 trillion in January–May 2025[4]. Vietnamese businesses have also shown a growing trend in outbound investment, with investments in 43 overseas ventures in the first four months of 2025, amounting to $317.3 million[3]. The government has an ambitious plan to boost e-commerce from 2026 to 2030, aiming for significant increases in online shopping and retail sales[5].
- In the booming business landscape of Hanoi, Vietnam, the AI sector might find a fertile ground, with the surge in startup businesses and investments contributing to a robust economy.
- The increasing number of businesses in Vietnam highlights a promising future for a variety of industries, including finance, culture, and technology, all of which can benefit from the growing economy.
- The rising trend of e-commerce in Vietnam, with taxes collected increasing by 55% year-over-year, signifies a significant shift towards digital businesses, which could potentially be a lucrative area for AI integrations in the near future.
