New businesses outnumber those leaving Vietnam’s market by 6.8 to 1

Vietnam’s tax authorities say the number of companies entering the market this year has reached 6.8 times the number completing procedures to leave it, offering what officials described as a positive picture of business formation.

The General Department of Taxation issued new tax identification numbers to 167,637 businesses and organizations in the first eight months of 2026. Companies accounted for 156,478 of those registrations, equivalent to 108% of the figure recorded during the same period last year.

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These figures show that the number of newly established businesses is growing.

More than 23,000 businesses and organizations submitted applications to end their tax identification numbers during the period. Mai Son, deputy head of the tax department, said the comparison remained favorable despite the departures. New businesses outnumbered completed tax-registration closures sixfold in 2024 and 4.5-fold in 2025. The lower ratio last year reflected a rise in closures during the reorganization of administrative areas under a two-tier local government model.

Son said the tax sector handled 23,000 closure applications in August alone. Since the start of the year, more than 94,000 cases have had their tax identification numbers terminated as part of a campaign to clean tax-registration data. He said the figures for new businesses, economic scale and tax revenue all pointed to stronger production and business activity. Tax-managed state budget revenue reached an estimated 1.793 quadrillion dong in the first eight months, up 16.7% from a year earlier.

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These data show that the number of new businesses starting operations is increasing compared with the number leaving the market.