Business closures surge in Vietnam amid tough economic climate

About 88,000 businesses in Vietnam withdrew from the market in the first five months of 2023, a 22.6% increase from the previous year, according to the country's General Statistics Office (GSO). The number includes 55,200 firms that temporarily ceased operations, marking a 20.3% yearly rise. Over the same period, about 61,900 new companies were established, a decrease from the previous year, both in the number of firms and capital. Additionally, 95,000 enterprises resumed operations, a 4% drop from 2022. A recent survey revealed that 82.3% of businesses planned to downscale or suspend operations due to a difficult business environment, and 81.4% had a negative outlook on Vietnam's economic prospects.