Vietnam Sees Surge in Business Suspensions in January, But Capital Inflows Show Optimism

HANOI – The number of enterprises registering to suspend business in Vietnam surged in January 2025, reflecting a common seasonal trend but also raising concerns about economic challenges.

According to the General Statistics Office (GSO), over 52,800 enterprises registered for temporary suspension, marking a 20.2% increase compared to the same period last year. This figure is also 12.6 times higher than the last month of 2024.

The Ministry of Planning and Investment noted that this surge is typical for the start of the year, as businesses strategically choose to suspend operations before the fiscal year begins and ahead of the Lunar New Year.

Mixed Signals in Business Dynamics

While business suspensions increased, the number of enterprises completing dissolution procedures fell by 5,500 units, signaling a potential slowdown in permanent closures. Meanwhile, nearly 33,500 enterprises entered or re-entered the market, including 10,700 newly established firms and 22,000 businesses resuming operations.

Strong Capital Inflows Amid Business Hesitation

Despite the rise in business suspensions, corporate investments showed strong confidence in economic recovery. Enterprises expanded operations and increased registered capital to over VND 367,200 billion, a 158% jump compared to the same period in 2024. Officials attribute this surge to growing optimism about the government’s economic policies and business recovery efforts.

However, new business registrations were more cautious in terms of investment size. The total registered capital for new businesses was VND 95,000 billion, representing a 39% decline year-on-year. On average, a newly registered enterprise had VND 8.8 billion in capital, lower than VND 10.1 billion in the same period of 2024. Notably, nearly 10,000 new businesses were classified as small-scale, with capital under VND 10 billion.

Rise in Business Households

In addition to corporate entities, 34,200 business households received establishment licenses in January, contributing nearly VND 8,500 billion in registered capital and providing employment for over 58,500 workers.

While the early-year trends highlight short-term business suspensions, the surge in capital investment and returning businesses suggests long-term optimism in Vietnam’s economic resilience. Analysts will be closely monitoring business activity in the coming months to assess whether this confidence translates into sustained growth.

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Source: Vietnam Insider