THE CONTEXT AND DEVELOPMENT SITUATION OF VIETNAMESE ENTERPRISES IN 2023

THE CONTEXT AND DEVELOPMENT SITUATION OF VIETNAMESE ENTERPRISES IN 2023

Part I

THE CONTEXT AND DEVELOPMENT SITUATION OF VIETNAMESE MARKET AND ENTERPRISES IN 2023

I. GLOBAL AND DOMESTIC ECONOMIC CONTEXT IN 2023

1. Global context

In 2023, the global situation experienced rapid, complex, and unpredictable changes, including unprecedented issues and factors that fundamentally altered socio-economic activities, cooperation, and competition globally. Developing countries, in particular, faced numerous difficulties, challenges, and risks.

The severe consequences of the COVID-19 pandemic continued to linger. Strategic competition among major powers intensified, with numerous geopolitical hotspots, especially conflicts in Ukraine, the Gaza Strip, and the Red Sea, evolving in complex and prolonged ways, creating multifaceted, unpredictable repercussions.

While the global economy recovered, it still faced significant challenges. Major economies recovered slowly, international trade and investment declined, and inflation, though cooling, remained high. Many countries maintained tight monetary policies and high interest rates.

Many currencies significantly devalued against the US dollar; global public debt surged, and several countries confronted debt crises, some even on the brink of default. International financial, monetary, and real estate markets were fraught with risks and inconsistencies. Additionally, trade protectionism and defense barriers increased, and new technical standards and regulations impacted the export activities of many nations.

Natural disasters, droughts, storms, floods, and climate change caused severe consequences; energy security, food security, and cybersecurity faced significant challenges.

On the other hand, the rapid development of science and technology had profound and widespread impacts on all aspects of life and society. Emerging economic trends, such as green economy, digital economy, and circular economy, became more defined and were adopted by many countries.

These trends presented opportunities for latecomers to accelerate development but also posed new challenges for countries slow to enhance their adaptability and innovation capacities.

2. Domestic context

Vietnam’s socio-economic situation is characterized by a mix of favorable conditions, opportunities, and challenges, with the latter being more numerous and complex. After more than 36 years of renovation, Vietnam has achieved significant and historically meaningful accomplishments, which serve as a crucial foundation for further socio-economic development.

However, Vietnam’s economy has a low starting point and is in transition. Its scale remains modest, and it is highly open with limited competitiveness and resilience. The economy is affected by various adverse external factors and prolonged internal limitations and inadequacies. Fundamental factors such as institutions, infrastructure, high-quality human resources, and science and technology are still in the process of improvement and have not yet met development needs.

The decline in international market demand, particularly from Vietnam’s major trade partners, has led to difficulties in export and import activities. Additionally, complex developments in disease outbreaks, natural disasters, droughts, and storms have caused severe damage in many localities.

According to international organizations, Vietnam’s economic growth in 2023 is projected to be lower than expected, increasing by only 4.7%-5.2%, with an optimistic forecast of higher growth (around 6%) in 2024. 

Several reasons are cited to support this assessment:

– According to the Asian Development Bank (ADB), the low budget implementation at the provincial level, along with the slow recovery of employment and domestic consumption, has hindered economic growth. Additionally, the low increase in industrial production and services has contributed to these challenges.

– According to the International Monetary Fund (IMF), tighter lending conditions have led to financial stress in real estate enterprises. Legal barriers and slowing sales, coupled with a frozen corporate bond market, have exacerbated the situation. The economy continues to be affected by the decline in external demand since the end of 2022.

II. SOME ECONOMIC DEVELOPMENT RESULTS OF VIETNAM IN 2023

1. Gross Domestic Product(GDP)

The GDP in 2023 is estimated to have increased by 5.05% compared to the previous year, surpassing the growth rates of 2020 and 2021 in the period from 2011 to 2023. In terms of total added value across the economy, the agriculture, forestry, and fisheries sector grew by 3.83%, contributing 8.84%. The industrial and construction sector grew by 3.74%, contributing 28.87%. The service sector grew by 6.82%, contributing 62.29%.

The agriculture, forestry, and fisheries sector exhibited positive growth, with significant increases in the export value of certain agricultural products. Livestock farming developed stably, and the application of high-tech models in white-leg shrimp farming yielded economic efficiency.

The added value of the agriculture sector in 2023 increased by 3.88% compared to the previous year, contributing 0.34 percentage points to the total added value of the economy. The forestry sector grew by 3.74%, but due to its small proportion, it only contributed 0.02 percentage points. The fisheries sector grew by 3.71%, contributing 0.1 percentage points.

In the industrial and construction sector, the industry faced numerous difficulties and challenges amidst declining global demand. The added value of the entire industry in 2023 increased by only 3.02% compared to the previous year, marking the lowest growth rate in the period from 2011 to 2023, contributing 1.0 percentage point to the overall economic growth rate.

In the manufacturing and processing industry, growth was 3.62%, the lowest in the period from 2011 to 2023, contributing 0.93 percentage points. The water supply, waste management, and wastewater treatment sector increased by 5.18%, contributing 0.03 percentage points. The electricity production and distribution sector grew by 3.79%, contributing 0.14 percentage points. The mining sector decreased by 3.17%, reducing overall growth by 0.1 percentage points. The construction sector increased by 7.06%, contributing 0.51 percentage points.

Commercial and tourism activities maintained high growth momentum, contributing positively to the service sector’s growth. The added value of the service sector in 2023 increased by 6.82% compared to the previous year, higher than the 2.01% and 1.75% increases in 2020 and 2021, respectively.

Several major market service industries significantly contributed to the overall added value growth of the economy. Wholesale and retail grew by 8.82% compared to the previous year, contributing 0.86 percentage points. The transportation and warehousing sector increased by 9.18%, contributing 0.55 percentage points. Financial, banking, and insurance activities grew by 6.24%, contributing 0.37 percentage points. The accommodation and food services sector increased by 12.24%, contributing 0.31 percentage points.

In terms of the economic structure in 2023, the agriculture, forestry, and fisheries sector accounted for 11.96%; the industrial and construction sector for 37.12%; the service sector for 42.54%; and product taxes minus subsidies for 8.38% (the corresponding structure in 2022 was 11.96%, 38.18%, 41.32%, and 8.54%, respectively).

Regarding GDP use in 2023, final consumption increased by 3.54% compared to 2022, contributing 41.04% to the overall economic growth. Asset accumulation rose by 4.09%, contributing 26.64%. Exports of goods and services decreased by 2.54%, while imports of goods and services dropped by 4.33%. The trade balance of goods and services contributed 32.32%.

The GDP at current prices in 2023 is estimated to reach 10,221.8 trillion VND, equivalent to 430 billion USD. The GDP per capita in 2023 at current prices is estimated at 101.9 million VND per person, equivalent to 4,282.5 USD, an increase of 158 USD compared to 2022.

Labor productivity across the economy in 2023 at current prices is estimated at 199.3 million VND per worker (equivalent to 8,380 USD per worker, an increase of 274 USD compared to 2022). In constant prices, labor productivity increased by 3.65% due to improvements in worker qualifications.

2. Macroeconomic Stability

2.1. Banking, Insurance, and Stock Market Activities

In 2023, credit institutions implemented safe and sound credit policies, maintaining stable deposit interest rates and reducing lending rates to promptly meet the capital needs of the public and businesses. The Vietnamese insurance market faced numerous difficulties and challenges in 2023.

The stock market exhibited diverse trends amidst the complex global economic fluctuations but remained a positive capital mobilization channel for the economy. The market capitalization of the stock market increased by 10.8% compared to the end of 2022.

As of December 21, 2023, the total money supply increased by 10.0% compared to the end of 2022 (compared to a 3.9% increase at the same time last year). Capital mobilization by credit institutions rose by 10.9% (up from 6.0% at the same time last year). The credit growth of the economy reached 11.1% (compared to 12.9% at the same time last year).

The total outstanding social policy credit reached 331.3 trillion VND, an increase of 16.9% compared to 2022, with over 6.8 million poor households, near-poor households, and other policy beneficiaries remaining in debt. Among these, the outstanding balance of preferential loan policies under Government Resolution No. 11/NQ-CP reached 38.225 trillion VND, achieving 99.5% of the program’s plan.

In 2023, total insurance market revenue was estimated at 227.1 trillion VND, down 8.33% compared to the previous year. Of this, life insurance premium revenue was estimated at nearly 156 trillion VND, down 12.5%, while non-life insurance revenue was estimated at 71.1 trillion VND, up 2.4%.

In 2023, the Vietnamese stock market experienced complex developments and faced significant pressure from international market fluctuations due to major countries’ monetary tightening policies aimed at curbing inflation and the risk of global economic downturn.

As of December 28, 2023, the VNIndex reached 1,127.58 points, increasing by 3.1% from the previous month and 12.0% from the previous year. As of December 15, 2023, the market capitalization was estimated at 5,790 trillion VND, up 10.8% compared to the end of 2022. The average transaction value was 17,624 billion VND per session, a decrease of 12.6% compared to the average in 2022.

In the bond market, the average transaction value in December 2023 was 10,863 billion VND per session, an increase of 77.9% from the previous month. From the beginning of the year, the average transaction value was 6,114 billion VND per session, a decrease of 20.4% compared to the average in 2022.

In the derivatives market, the average trading volume of VN30 futures contracts was 237,702 contracts per session, a decrease of 13.0% compared to the average in 2022. The volume of covered warrants was 32.23 million warrants per session, a decrease of 0.6%, while the transaction value reached 28.67 billion VND per session, an increase of 35.2%.

2.2. State Budget Revenue and Expenditure

State Budget Revenue

The total state budget revenue in 2023 is estimated at 1,717.8 trillion VND, exceeding the forecast by 6.0% but decreasing by 5.4% compared to the previous year. Some key revenue components include:

– Domestic revenue is estimated at 1,439 trillion VND, achieving 107.9% of the year’s forecast and decreasing by 0.3% compared to the previous year.

– Revenue from crude oil is estimated at 62.8 trillion VND, achieving 149.5% of the year’s forecast and decreasing by 19.5% compared to the previous year.

– Balanced budget revenue from import-export activities is estimated at 213 trillion VND, achieving 89.1% of the year’s forecast and decreasing by 25.4% compared to the previous year.

State Budget Expenditure

The total state budget expenditure in 2023 is estimated at 1,731.9 trillion VND, achieving 83.4% of the year’s forecast and increasing by 10.9% compared to the previous year.

Of this, regular expenditure in 2023 is estimated at 1,058.6 trillion VND, achieving 90.3% of the year’s forecast and increasing by 3.2% compared to the previous year. Development investment expenditure is estimated at 579.8 trillion VND, achieving 79.8% and increasing by 33.1%. Interest payment expenditure is estimated at 90.1 trillion VND, achieving 87.6% and decreasing by 7.6%.

2.3. Development Investment

The total investment capital in 2023 at current prices is estimated to reach 3,423.5 trillion VND, increasing by 6.2% compared to 2022. This includes: state sector capital at 953.6 trillion VND, accounting for 27.8% of total capital and increasing by 14.6%; non-state sector capital at 1,919.7 trillion VND, accounting for 56.1% and increasing by 2.7%; and foreign direct investment capital at 550.2 trillion VND, accounting for 16.1% and increasing by 5.4%.

Within the state economic sector, capital from the state budget in 2023 is estimated at 625.3 trillion VND, achieving 85.3% of the year’s plan and increasing by 21.2% compared to the previous year.

By administrative level, central capital reached 113.5 trillion VND, achieving 85.1% of the year’s plan and increasing by 24.3% compared to the previous year. Local capital reached 511.8 trillion VND, achieving 85.4% and increasing by 20.5%.

Within locally managed capital, provincial state budget capital reached 353.4 trillion VND, achieving 82.5% and increasing by 26.1%. District state budget capital reached 137.8 trillion VND, achieving 91.1% and increasing by 11.1%. Commune state budget capital reached 20.6 trillion VND, achieving 104.7% and decreasing by 0.2%.

The total registered foreign investment capital in Vietnam as of December 20, 2023, including new registrations, adjusted registrations, and capital contributions or share purchases by foreign investors, reached nearly 36.6 billion USD, an increase of 32.1% compared to the previous year.

Newly registered capital saw 3,188 projects licensed with a total registered capital of 20.19 billion USD, reflecting a 56.6% increase in the number of projects and a 62.2% rise in registered capital compared to the previous year.

Among these, the processing and manufacturing industry attracted the largest share of newly licensed foreign direct investment, with a registered capital of 15.85 billion USD, accounting for 78.5% of the total newly registered capital. The production and distribution of electricity, gas, water, and air conditioning reached 2.09 billion USD, making up 10.4%, while other sectors accounted for 2.24 billion USD, representing 11.12%.

Out of the 72 countries and territories with newly licensed investment projects in Vietnam in 2023, Singapore was the largest investor with 3.77 billion USD, representing 18.7% of the total newly registered capital. This was followed by China with 3.54 billion USD, accounting for 17.6%; the Hong Kong Special Administrative Region (China) with 3.41 billion USD, accounting for 16.9%; Japan with 2.86 billion USD, accounting for 14.2%; Taiwan with 2.25 billion USD, accounting for 11.1%; and South Korea with 1.84 billion USD, accounting for 9.1%.

Adjusted registered capital saw 1,262 existing projects from previous years registering additional investment capital of 7.88 billion USD, a decrease of 22.1% compared to the previous year.

If considering both newly registered capital and adjusted registered capital of previously licensed projects, the total registered foreign direct investment in the processing and manufacturing industry reached 21.97 billion USD, accounting for 78.3% of the total newly registered and additional capital. The production and distribution of electricity, gas, water, and air conditioning amounted to 2.27 billion USD, making up 8.1%, while other sectors totaled 3.8 billion USD, representing 13.6%.

Foreign investors made 3,451 capital contribution and share purchase transactions, with a total capital contribution value of 8.54 billion USD, an increase of 65.7% compared to the previous year. Of these, 1,349 transactions involved capital contributions and share purchases that increased enterprises’ charter capital, totaling 4.05 billion USD, while 2,102 transactions involved foreign investors buying domestic shares without increasing charter capital, amounting to 4.49 billion USD.

In terms of capital contribution and share purchase by foreign investors, investment in real estate business activities reached 3.16 billion USD, accounting for 36.9% of the total capital contribution; financial, banking, and insurance activities reached 1.55 billion USD, accounting for 18.1%; and other sectors amounted to 3.84 billion USD, accounting for 44.9%.

The foreign direct investment capital implemented in Vietnam in 2023 is estimated at 23.18 billion USD, an increase of 3.5% compared to the previous year. This represents the highest amount of foreign direct investment capital implemented in the past five years. Of this, the processing and manufacturing industry reached 19.08 billion USD, accounting for 82.3% of the total implemented foreign direct investment capital. The production and distribution of electricity, gas, hot water, steam, and air conditioning amounted to 1.37 billion USD, accounting for 5.9%; and real estate business activities reached 1.15 billion USD, accounting for 4.9%.

In 2023, Vietnamese investment abroad included 124 newly licensed projects with a total capital of 282.7 million USD, a decrease of 33.7% compared to the previous year. Additionally, 25 projects adjusted their capital, increasing by 138.2 million USD, a 1.3-fold increase.

Overall, the total Vietnamese investment abroad (newly licensed and adjusted) reached 420.9 million USD, a decrease of 21.2% compared to the previous year. Of this, the wholesale and retail sector, including the repair of cars, motorbikes, motorcycles, and other motor vehicles, accounted for 156.9 million USD, making up 37.3% of the total investment. The information and communication sector reached 120.6 million USD, representing 28.7%, while the production and distribution of electricity, gas, hot water, steam, and air conditioning amounted to 84.4 million USD, accounting for 20%.

In 2023, 26 countries and territories received Vietnamese investment. Canada led with 150.3 million USD, representing 35.7% of the total investment, followed by Singapore with 122.6 million USD, accounting for 29.1%. Laos received 116.7 million USD, making up 27.7%. Cuba accounted for 11.8 million USD, representing 2.8%, and Israel received 6.1 million USD, accounting for 1.4%.

III. DEVELOPMENT SITUATION OF VIETNAMESE ENTERPRISES IN 2023

1. Active Enterprises

1.1. Scale and Growth Rate of Active Enterprises as of December 31, 2023

According to data from the national business registration database, as of December 31, 2023, the country had 921,372 active enterprises, an increase of 2.8% compared to the same time in 2022.

Table 1. The number of active enterprises nationwide from 2017 to 2023

According to economic sector, the services area has the highest concentration of active enterprises, with 628,036 businesses, accounting for 68.2% of the total number of enterprises nationwide, marking a 3.5% increase compared to 2022. Among these, the sectors that saw the fastest growth in the number of businesses were the Health and Social Assistance sector, which increased by 15.4%, and the Education and Training sector, which increased by 13.7%. Conversely, the sector that experienced the most significant decline in the number of businesses was the Real Estate Business sector, which decreased by 7.3%.

The Industry and Construction sector had 281,177 businesses, making up 30.5% of the total and showing a 1.5% increase. Within this area, the Manufacturing and Processing Industry remained a highlight, growing by 3.0%.

The Agriculture, Forestry, and Fisheries sector comprised 12,159 enterprises, accounting for 1.3% of the total and increasing by 0.5%.

According to localities, as of December 31, 2023, 61 out of 63 provinces experienced an increase in the number of active enterprises compared to December 31, 2022. Among these, the provinces with the highest growth rates were Lạng Sơn with a 16.7% increase, Lào Cai with an 11.1% increase, Bắc Ninh with a 10.9% increase, Hà Giang with a 10.6% increase, Bắc Giang with a 10.2% increase, Thái Bình with a 9.1% increase, and Hưng Yên with an 8.8% increase.

There were two provinces where the number of active enterprises decreased: Sóc Trăng, which saw a 1.1% decrease, and Hồ Chí Minh City, which experienced a 0.4% decrease.

Regarding the concentration of enterprises, Hồ Chí Minh City had the highest number with 273,071 enterprises, accounting for 29.6% of all active enterprises in the country, despite a 0.4% decrease from 2022. Hà Nội followed with 192,197 enterprises, representing 20.9% and showing a 2.8% increase. Bình Dương had 43,274 enterprises, making up 4.7% and increasing by 6.2%. Đồng Nai had 26,647 enterprises, representing 2.9% and increasing by 3.1%. Đà Nẵng had 25,797 enterprises, making up 2.8% and increasing by 1.5%. Hải Phòng had 21,037 enterprises, representing 2.3% and increasing by 1.5%.

1.2. The average number of active enterprises per 1,000 people

In 2023, the average number of active enterprises per 1,000 people across the country was 9.2.

Among the 63 provinces, seven had a higher-than-average density of active enterprises per 1,000 residents. Hồ Chí Minh City had the highest density with 28.9 enterprises. Hà Nội followed with 22.4 enterprises, Đà Nẵng with 20.7 enterprises, Bình Dương with 15.3 enterprises, Bắc Ninh with 10.9 enterprises, Bà Rịa – Vũng Tàu with 10.4 enterprises, and Hải Phòng with 10.0 enterprises.

In contrast, 56 out of 63 provinces had a lower density of active enterprises per 1,000 residents compared to the national average. The provinces with the lowest densities included Hà Giang with 1.6 enterprises, Sơn La with 1.7 enterprises, Điện Biên with 1.8 enterprises, and Tuyên Quang, Cao Bằng, and Bắc Kạn each with 2.3 enterprises. Additionally, Sóc Trăng had 2.4 enterprises and Bạc Liêu had 2.5 enterprises.

In 2023, several regions experienced the fastest growth in the average number of active enterprises per 1,000 people compared to 2022. Lạng Sơn led the way with a 15.9% increase, followed by Lào Cai with a 9.8% increase, Hà Giang with a 9.7% increase, Thái Bình with an 8.9% increase, Bắc Ninh with an 8.8% increase, Bắc Giang with an 8.4% increase, and Hưng Yên with a 7.9% increase.

Conversely, some regions saw a decline in the average number of active enterprises per 1,000 people compared to the previous year. Sóc Trăng experienced a 1.2% decrease, Hồ Chí Minh City saw a 1.1% decrease, and Đà Nẵng had a 0.6% decrease.

Table 2. The average number of active enterprises per 1,000 people from 2017 to 2023

Comparing the average period from 2021 to 2023 with the average from 2017 to 2020, several regions exhibited the highest growth rates in the density of active enterprises per 1,000 residents. Trà Vinh led with a 33.1% increase, followed by Ninh Thuận with a 31.6% increase, Lạng Sơn with a 31.1% increase, Hậu Giang with a 30.9% increase, Bình Phước with a 30.2% increase, Bắc Giang with a 29.8% increase, and both Thanh Hóa and Tuyên Quang with a 29.7% increase.

During this same comparative period, only Hải Phòng experienced a decline in the density of active enterprises per 1,000 residents, showing a 3.1% decrease.

1.3. The average number of active enterprises per 1,000 workers

In 2023, the national average number of active enterprises per 1,000 workers was 19.7.

Among the 63 provinces, seven had a higher-than-average density of active enterprises per 1,000 laborers. Hồ Chí Minh City had the highest density with 59.8 enterprises, followed by Hà Nội with 50.9 enterprises, Đà Nẵng with 43.2 enterprises, Bình Dương with 24.1 enterprises, Bắc Ninh with 22.9 enterprises, Hải Phòng with 22.6 enterprises, and Bà Rịa – Vũng Tàu with 21.4 enterprises.

On the other hand, 56 out of 63 provinces had a lower density of active enterprises per 1,000 laborers compared to the national average. The provinces with the lowest densities included Điện Biên with 3.7 enterprises, Sơn La with 3.9 enterprises, Hà Giang with 4.0 enterprises, Dong Thap with 5.2 enterprises, Sóc Trăng with 5.3 enterprises, and Bạc Liêu, Bắc Kạn, and Tuyên Quang each with 5.5 enterprises.

Table 3. The average number of active enterprises per 1,000 workers from 2017 to 2023

In 2023, several regions experienced the fastest growth in the average number of active enterprises per 1,000 workers compared to 2022. Lạng Sơn led the increase with 19.3%, followed by Đồng Tháp with 12.9%, Bắc Ninh with 11.4%, Thái Nguyên with 10.8%, Hậu Giang with 10.3%, Lào Cai with 10.1%, Vĩnh Phúc with 10.0%, Hà Giang with 9.8%, and Thái Bình with 9.2%.

Conversely, some regions saw a decline in the average number of active enterprises per 1,000 workers compared to the previous year. Hà Nam experienced a 5.8% decrease, Cao Bằng saw a 5.3% decrease, Hồ Chí Minh City had a 5.2% decrease, Sóc Trăng experienced a 2.3% decrease, Quảng Nam saw a 1.7% decrease, Cà Mau had a 1.1% decrease, Khánh Hòa saw a 0.7% decrease, Đà Nẵng had a 0.3% decrease, and Hòa Bình had a 0.2% decrease.

Comparing the average period from 2021 to 2023 with the average from 2017 to 2020, several regions showed significant growth in the density of active enterprises per 1,000 workers. Cao Bằng led with a remarkable 110.4% increase, followed by Lạng Sơn with a 101.0% increase, Lai Châu with a 78.7% increase, Yên Bái with a 75.6% increase, Bắc Kạn with a 68.8% increase, Tuyên Quang with a 67.8% increase, Hà Giang with a 65.6% increase, and Hà Tĩnh with a 54.3% increase.

The regions with the lowest growth rates in the density of active enterprises per 1,000 workers over the same periods were Hải Phòng with a 3.1% increase, Đà Nẵng with an 11.3% increase, Khánh Hoà with a 12.8% increase, Bình Dương with a 13.4% increase, Đồng Nai with a 14.5% increase, and Hồ Chí Minh City with a 14.7% increase.

2. Newly established enterprises

In 2023, there were 159,294 newly established enterprises nationwide, reflecting a 7.2% increase compared to 2022.

According to the economic sectors, the services sector saw the highest number of new enterprises in 2023, with 119,487 businesses, an 8.3% increase from 2022. Among these, the sectors with the fastest growth in new enterprises included Education and Training, which increased by 27.0%, Wholesale and Retail; Repair of Motor Vehicles and Motorcycles, which increased by 16.8%, Administrative and Support Service Activities, which increased by 14.1%, and both Transport and Warehousing and Health and Social Assistance, which increased by 11.8%.

Conversely, some sectors experienced a decrease in new enterprises. The Real Estate Business sector saw a decline of 45.0%, and the Financial, Banking, and Insurance Activities sector declined by 27.0%. The Industry and Construction sector saw 38,031 new enterprises established, marking a 4.8% increase. Meanwhile, the Agriculture, Forestry, and Fisheries sector had 1,776 new enterprises, reflecting a 9.3% decrease.

Table 4. The number of newly established enterprises from 2016 to 2023

According to the localities, in 2023, 30 out of 63 provinces saw an increase in the number of newly established enterprises compared to 2022. The provinces with the highest growth rates included Lạng Sơn with a 56.8% increase, Bắc Giang with a 35.3% increase, Hà Giang with a 29.5% increase, Bắc Ninh with a 28.6% increase, and Điện Biên with a 21.2% increase.

Conversely, 33 provinces experienced a decline in new enterprise formations in 2023 compared to 2022. The provinces with the most significant decreases were Lai Châu with a 28.9% decrease, Cao Bằng with a 28.2% decrease, Hòa Bình with a 19.4% decrease, Thừa Thiên – Huế with a 19.2% decrease, Quảng Bình with a 19.1% decrease, and Đắk Nông with an 18.1% decrease.

In terms of regions with a large number of new enterprises, Hồ Chí Minh City had 53,300 new enterprises, a 17.3% increase. Hà Nội had 31,512 new enterprises, a 6.0% increase. Bình Dương had 6,792 new enterprises, a 4.6% increase. Đồng Nai had 4,061 new enterprises, a 3.4% decrease. Đà Nẵng had 3,758 new enterprises, a 6.0% decrease. Thanh Hóa had 3,670 new enterprises, a 4.7% decrease, and Hải Phòng had 3,523 new enterprises, a 7.0% increase.

3. Operation-resuming enterprises

In 2023, a total of 58,412 enterprises resumed operations nationwide, which marked a 2.4% decrease compared to 2022.

When combining the number of newly established enterprises and those that returned to operations, the total number of enterprises entering the market amounted to 217,706, reflecting a 4.5% increase.

Table 5. The number of operation-resuming enterprises nationwide from 2016 to 2023

According to the economic sectors, the services sector saw 41,729 enterprises resuming operations, a decrease of 3.8% compared to 2022. Within this sector, certain industries experienced significant declines in the number of enterprises resuming operations. The Other Services Activities sector decreased by 11.6%, the Accommodation and Food Service Activities sector decreased by 10.5%, the Arts, Entertainment, and Recreation sector decreased by 10.4%, and the Administrative and Support Service Activities sector decreased by 9%.

In contrast, the Industry and Construction sector saw 15,878 enterprises resuming operations, an increase of 1.5%. The Agriculture, Forestry, and Fisheries sector saw 805 enterprises resuming operations, a slight decrease of 0.7%.

In 2023, the services sector had 161,216 enterprises entering the market, a 4.9% increase compared to 2022. Among these, sectors with the highest growth rates included Education and Training with a 20.1% increase, Health and Social Assistance with a 12.2% increase, and Wholesale and Retail; Repair of Motor Vehicles and Motorcycles with a 10.3% increase. On the other hand, sectors experiencing significant declines included the Real Estate Business sector, which decreased by 34.5%, and the Financial, Banking, and Insurance Activities sector, which decreased by 10.0%.

The Industry and Construction sector had 53,909 enterprises, reflecting a 3.8% increase. Meanwhile, the Agriculture, Forestry, and Fisheries sector had 2,581 enterprises, marking a 6.8% decrease.

According to the localities, in 2023, 25 out of 63 provinces experienced an increase in the number of enterprises resuming operations compared to 2022. The provinces with the highest growth rates included Long An with a 42.5% increase, Cao Bằng with a 42.4% increase, Hậu Giang with a 25.7% increase, Cần Thơ with a 23.8% increase, Hải Dương with a 20.7% increase, Đồng Nai with a 19.0% increase, and Đắk Nông with a 17.0% increase.

Conversely, 36 provinces saw a decrease in the number of enterprises resuming operations in 2023 compared to 2022. The provinces with the most significant declines were Bình Định with a 35.6% decrease, Điện Biên with a 28.2% decrease, Bắc Kạn with a 25.4% decrease, Đồng Tháp with a 24.8% decrease, Thừa Thiên – Huế with a 23.8% decrease, and Thanh Hóa with a 20.9% decrease. Notably, the number of enterprises resuming operations in Bà Rịa – Vũng Tàu and Lạng Sơn remained the same as in 2022.

In terms of market entry, 30 out of 63 provinces saw an increase in the number of enterprises joining the market in 2023 compared to 2022. Lạng Sơn led with a 36.5% increase, followed by Bắc Giang with a 26.5% increase, Bắc Ninh with a 25.0% increase, Hà Giang with a 22.2% increase, and both Long An and Hải Dương with a 19.7% increase. Nam Định also saw a notable increase of 14.4%.

However, 33 provinces experienced a decline in the number of enterprises joining the market compared to the previous year. The provinces with the most significant decreases included Lai Châu with a 23.3% decrease, Thừa Thiên – Huế with a 20.9% decrease, Bình Định with a 17.7% decrease, Gia Lai with a 13.8% decrease, Quảng Bình with a 12.5% decrease, and Đồng Tháp with a 12.3% decrease.

In 2023, several regions had a significant number of enterprises resuming operations. Hồ Chí Minh City led with 18,284 enterprises, a 6.6% decrease compared to 2022. Hà Nội followed with 12,597 enterprises, marking a 4.0% increase. Bình Dương had 2,122 enterprises, reflecting a 13.3% increase. Đà Nẵng saw 1,856 enterprises resuming operations, a decrease of 12.7%. Hải Phòng had 1,352 enterprises, a 13.8% decrease. Đồng Nai had 1,302 enterprises, with a notable 19.0% increase.

Regarding the number of enterprises entering the market in 2023, Hồ Chí Minh City had 71,584 enterprises, a 10.1% increase compared to 2022. Hà Nội had 44,109 enterprises, reflecting a 5.4% increase. Bình Dương saw 8,914 enterprises, a 6.5% increase. Đà Nẵng had 5,614 enterprises, showing an 8.3% decrease. Đồng Nai had 5,363 enterprises, a slight increase of 1.2%.

4. Enterprises which have registered their temporary ceased operations

In 2023, the total number of enterprises nationwide that have registered their temporarily ceased business operations was 89,060. This represents a 20.7% increase compared to 2022.

Table 6. The number of enterprises which have registered their temporary ceased operations nationwide from 2016 to 2023

According to the localities, in 2023, 59 out of 63 provinces saw an increase in the number of registered enterprises temporarily ceasing operations compared to 2022. Among these, the provinces with the highest increases included Bắc Giang with a 58.4% increase, Bình Dương with a 42.7% increase, Hà Nam with a 38.4% increase, Đồng Nai with a 38.1% increase, Long An with a 36.3% increase, Sơn La with a 33.0% increase, Vĩnh Phúc with a 32.3% increase, Bình Thuận with a 31.5% increase, Điện Biên with a 31.3% increase, and Nam Định with a 31.2% increase.

Conversely, four provinces experienced a decrease in the number of registered enterprises temporarily ceasing operations in 2023 compared to 2022. These were Đắk Nông with a 5.3% decrease, Yên Bái with a 3.6% decrease, Kon Tum with a 3.5% decrease, and Hải Dương with a 0.1% decrease.

The provinces with the highest number of registered enterprises temporarily ceasing operations in 2023 included Hồ Chí Minh City with 27,699 enterprises, a 25.7% increase; Hà Nội with 19,877 enterprises, a 21.4% increase; Đà Nẵng with 3,694 enterprises, a 14.5% increase; and Hải Phòng with 2,643 enterprises, an 11.0% increase.

5. Dissolved enterprises

In 2023, there were 18,038 enterprises nationwide that dissolved, marking a 3.1% decrease compared to 2022. The total number of enterprises exiting the market, including those that dissolved and those temporarily ceasing registered business activities, was 107,098, reflecting a 15.9% increase.

The rate of enterprises exiting the market compared to those entering the market stood at 49.2%, which is higher than the rate in 2022, which was 44.3%.

Table 7. The number of dissolved enterprises nationwide from 2016 to 2023

According to the economic sectors, in 2023, the services sector had the highest number of dissolved enterprises, totaling 13,957, which accounted for 77.4% of all dissolved enterprises in the country and reflected a 1.9% increase compared to 2022. The number of enterprises exiting the market in this sector was 77,416, an increase of 17.3%, representing 48.0% of the number of enterprises entering the market in this sector.

In the Industry and Construction sector, 3,701 enterprises dissolved, accounting for 20.5% of the total, marking a 16.9% decrease. The number of enterprises exiting the market in this sector was 28,173, an increase of 12.9%, which represented 52.3% of the number of enterprises entering the market in this sector.

In the Agriculture, Forestry, and Fisheries sector, 380 enterprises dissolved, making up 2.1% of the total, and reflecting a 17.7% decrease. The number of enterprises exiting the market in this sector was 1,509, a 3.3% increase, representing 58.5% of the number of enterprises entering the market in this sector.

According to the localities, in 2023, four out of 63 provinces had more than 500 dissolved enterprises. Hồ Chí Minh City led with 4,058 enterprises, a 15.5% decrease compared to 2022. Hà Nội had 3,720 enterprises, marking a 2.7% increase. Bình Dương saw 725 enterprises dissolve, an 11.2% increase. Đồng Nai had 570 enterprises dissolve, showing a 6.5% increase.

Across the country, 36 provinces experienced an increase in the number of dissolved enterprises in 2023 compared to 2022, while 25 provinces saw a decrease. Both Tiền Giang and Lai Châu had the same number of dissolved enterprises in 2023 as in 2022.

When combining the number of registered enterprises that temporarily ceased operations and those that dissolved, the provinces with the highest number of enterprises exiting the market were Hồ Chí Minh City with 31,757 enterprises, an 18.3% increase; Hà Nội with 23,597 enterprises, an 18.0% increase; Đà Nẵng with 4,162 enterprises, a 12.7% increase; Bình Dương with 3,366 enterprises, a 34.5% increase; Hải Phòng with 3,006 enterprises, a 13.7% increase; Bắc Ninh with 2,287 enterprises, a 25.9% increase; and Đồng Nai with 2,256 enterprises, a 28.5% increase.

Provinces with the fastest increase in the number of enterprises exiting the market compared to 2022 included Bắc Giang with a 51.3% increase, Vĩnh Phúc with a 37.8% increase, Hà Nam with a 35.6% increase, Bình Dương with a 34.5% increase, Nam Định with a 34.4% increase, Ninh Bình with a 32.1% increase, and Thừa Thiên-Huế with a 30.4% increase.

The regions with the highest ratios of enterprises exiting the market compared to those entering the market included Thừa Thiên-Huế at 81.7%, Quảng Ninh at 75.5%, Đà Nẵng at 74.1%, Quảng Nam at 73.6%, Hà Nam at 72.4%, Cao Bằng at 70.3%, Khánh Hòa at 69.3%, Quảng Ngãi at 68.1%, Phú Yên at 66.9%, Lào Cai at 66.2%, Điện Biên at 64.9%, Nam Định at 62.5%, Hải Phòng at 61.7%, and Quảng Trị at 59.7%.

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