Newly established and re-established businesses increase, policy difficulties continue to be removed

The total number of newly established and resuming businesses in the first 11 months of this year reached more than 218,000, up 7.4% over the same period last year.

Producing RSS3 rubber for export at the factory of Kon Tum Rubber One Member Co., Ltd. Photo: Vu Sinh/VNA

96,200 businesses temporarily suspend operations

The total number of newly established and resuming businesses in the first 11 months of this year was about 218,000, up 7.4% over the same period last year. However, the number of businesses withdrawing from the market was 173,200, up 9.1% over the same period last year. Therefore, many economic experts believe that solutions to overcome difficulties for businesses need to be accelerated.

According to the report of the General Statistics Office (GSO) released on December 6, in November 2024, Vietnam had nearly 11,200 newly established enterprises, down 21.3% compared to October and down 22.6% compared to the same period last year.

Compared to October 2024 data (up 26.5% compared to the previous month and down 9.8% compared to the same period), it can be seen that the number of newly established enterprises in November decreased sharply. Along with the decrease in the number of enterprises, the newly registered capital of enterprises in November 2024 also decreased by 9.8% compared to the previous month and decreased by 27.2% compared to the same period.

In addition, the General Statistics Office said: Vietnam also has more than 7,700 enterprises returning to operation, down 10.9% compared to the previous month and up 17.4% compared to the same period in 2023.

Thus, with the decrease in November, the number of newly established enterprises in the past 11 months has decreased slightly by 0.5% compared to the same period (instead of increasing by 1.9% as in the previous month) with 147,200 enterprises. Meanwhile, registered capital is equivalent to the same period in 2023 (VND 1,450.6 trillion) and the number of employees decreased by 8.0% compared to the same period last year (905.7 thousand employees).

In November 2024, 4,243 enterprises registered to temporarily suspend business, down 22.2% compared to the previous month and down 5.9% compared to the same period in 2023; 7,550 enterprises stopped operating pending dissolution procedures, up 39.2% and up 14.4%; 1,910 enterprises completed dissolution procedures, down 3.9% and up 14.2%.

In the first 11 months of 2024, the number of enterprises temporarily suspending business was more than 96,200, an increase of 12.6% over the same period last year; nearly 57,700 enterprises suspended operations pending dissolution procedures, an increase of 0.9%; nearly 19,300 enterprises completed dissolution procedures, an increase of 19.8%.

Reduce cost pressure, "resolve" difficulties in administrative procedures

According to the representative of the Private Economic Development Research Board (Board IV), orders, cash flow, market information, access to loans... are still the "named" difficulties. Regarding the biggest challenges that businesses face in the first half of 2025, the representative of Board IV said: The "named" issues are not new but have changed in order, including: Orders (56.1%); risk of criminalizing economic transactions (47%); administrative procedures (44.4%); cash flow (37.7%); market information (31.7%); access to loans (30.8%).

Accordingly, there are still many variables while the internal strength of enterprises, especially the private economic sector, has been eroded by COVID-19, inflation in 2023 and recently the impact of storm No. 3 (Yagi).

Mr. Nguyen Quoc Hiep - Chairman of the Vietnam Association of Construction Contractors said: The most common problem for businesses is administrative procedures and site clearance. "Our project alone has 177 steps, and it takes 360 days to have enough time for dialogue and enforcement. Site clearance procedures are a burden that real estate businesses have to endure," said Mr. Nguyen Quoc Hiep.

Regarding administrative procedures, according to Mr. Nguyen Quoc Hiep, some projects require 38-40 seals. In addition, businesses also face difficulties in planning adjustment procedures. The Chairman of the Vietnam Association of Construction Contractors hopes that competent authorities will pay attention to decentralizing some planning adjustment steps to investors to increase initiative and save time; at the same time, there should be a process for checking and monitoring administrative procedures.

Ms. Pham Thi Ngoc Thuy - Director of the Office of Private Economic Development Research (Department IV) once emphasized: Administrative procedure problems are always in the Top 3 problems that businesses encounter, according to a recent survey, this problem has become the second problem. Although the Government has made many efforts to solve them, there are still many difficult issues, especially related to foreign investment projects, so it is necessary to focus highly on solving the "problem" related to administrative procedure reform and the story of transparency in information on the progress of investment projects.

“Planning is a big issue, viewed from many different perspectives. Each adjustment process involves many departments and branches, prolonging the process, so we should streamline the focal points, which will partly solve the current problems related to planning,” said Ms. Pham Thi Ngoc Thuy.

Therefore, according to Committee IV, the determination and timeliness in the direction and administration of the Government and the Prime Minister are the most important measures to foster trust among people and businesses and need to be continuously maintained and spread to the grassroots levels to ensure consistency between policies and implementation. Solutions to reduce cost pressure for people and businesses still need to be focused on designing and promoting implementation.

"In terms of policy orientation, the Prime Minister should not only focus on large "existing" enterprises but also pay attention to creating a favorable environment to help many domestic enterprises to be able to rise up and gain a leading position. In addition, the Government is directing ministries and branches to make efforts to perfect the legal corridor on green economy, circular economy, renewable energy...", the representative of Committee IV proposed. In addition, the Prime Minister also needs to direct ministries and branches to promote public-private partnership mechanisms; at the same time, there should be research and evaluation of a number of breakthrough initiatives for Vietnam to transform the economy to a green one.

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