Over 190,000 Market Exits in Vietnam Amid High Growth Potential

In the first ten months of 2025, more than 190,000 enterprises exited the Vietnamese market, reflecting challenges such as rising operational costs, intense competition, and increasingly complex requirements. At the same time, over 255,000 businesses were registered or resumed operations, representing a 26.5% increase compared to the same period in 2024, contributing VND 5.2 million billion in registered capital, up 98.2% year-on-year⁽¹⁾.

These figures highlight a dynamic and resilient business environment where strategic planning and regulatory compliance are critical. Despite the market exits in Vietnam, the nation continues to offer substantial opportunities for well-prepared entrepreneurs. Let’s look into the following sections for a more detailed analysis.

Understanding the increasing number of market exits in Vietnam

Vietnam’s business environment is showing strong entrepreneurial activity, yet so many enterprises have left the market since the start of this year.

Rising operational costs

Small and micro-enterprises face growing financial pressures. Wages, rent, logistics, and input prices have all increased, squeezing profit margins. Urban labor shortages and rising demand for skilled staff further push operational costs upward, making sustainability difficult for businesses with limited capital.

Intense market competition

Competition has intensified across sectors such as services, retail, and food and beverage. During the ten months, about 162,900 new enterprises entered the market⁽²⁾, creating more rivalry for customers.

In addition, SMEs also face obstacles in maintaining market share among selective and price-sensitive consumers, largely due to difficulties with brand recognition and limited marketing resources in Vietnam’s business‑exit landscape.

Regulatory pressure

Staying compliant with tax, digital invoicing, and reporting requirements has become more complex. Many micro and small enterprises lack dedicated expertise or administrative capacity, and non-compliance leads to fines or forced closure. These regulatory changes contribute significantly to market exits among less-prepared businesses.

Cash flow constraints

Liquidity remains a critical factor. Delayed client payments and limited access to financing create operational risks. Firms with inadequate working capital may struggle to cover payroll, supplier obligations, and daily expens es. At the same time, over 90,000 enterprises resumed operations or were newly registered during the same period. This implies that businesses that are able to manage cash flow and compliance effectively can succeed.

The pressures mainly affect micro and small firms in low-margin sectors, where limited flexibility increases vulnerability. Rising costs, competitive intensity, regulatory demands, and cash flow challenges explain the high turnover, underscoring the importance of careful financial and operational management.

The brighter side of a market that renews itself

Despite high turnover and the market exits trend in Vietnam, the nation continues to attract ambitious entrepreneurs and investors. Total registered capital of these new businesses exceeded VND 1.59 quadrillion, with an average of VND 9.8 billion per enterprise, reflecting a better financial foundation among entrants compared to previous years⁽²⁾.

Foreign direct investment continues to flow steadily, reaching US$31.52 billion during the same period, a 15.6% increase over 2024⁽²⁾. Manufacturing and processing industries captured the largest share, while renewable energy, logistics, and high-tech services remain attractive sectors for investors. Public investment also supports market development, accounting for roughly 34% of GDP and prioritizing infrastructure, energy, and digital transformation initiatives⁽³⁾.

These developments indicate that business exits are part of a natural market transformation rather than a decline, and this dynamic encourages higher standards, efficiency, and competitiveness across sectors.

For entrepreneurs entering the market today, the combination of domestic and foreign investment, higher capital per enterprise, and growing market demand provides an environment ripe for expansion. Companies equipped with strong financial planning, compliance capabilities, and operational efficiency can leverage the door to establish a solid foothold and scale sustainably.

The Vietnamese market’s capacity to renew itself continuously highlights that opportunities outweigh the disadvantages for well-prepared businesses. Notably, expert planning, resource management, and sector selection remain key to success.

Why Vietnam remains attractive for foreign investment

Vietnam is not just surviving market shifts, it is thriving as a hub for business in South-East Asia. Strategic regional integration keeps the country tightly connected to Asia’s largest markets: by late 2024, trade with RCEP economies made up over 55% of total trade⁽⁴⁾. 

Furthermore, global agreements such as CPTPP and the EU‑Vietnam Free Trade Agreement (EVFTA) open doors to global markets, giving exporters and investors unmatched reach⁽⁵⁾.

The government is actively shaping a business-friendly environment. Reforms streamline procedures, improve transparency, and drive digital transformation, making it faster and easier to set up and operate a business. These steps reflect a clear commitment to support both local and foreign enterprises in growing confidently.

Economic fundamentals are equally compelling. Vietnam’s stable macroeconomy, young and expanding population, rising urbanization, and growing middle class create strong domestic demand. Businesses entering now are tapping into a market that is dynamic, scalable, and increasingly sophisticated.

What makes Vietnam particularly attractive is that it rewards readiness and innovation. The economy’s high turnover and business exits trend in Vietnam are not warning signs, but a sign of healthy transformation. Hence, weaker firms are giving way to stronger, better-prepared ones. 

Turning turnover into opportunity with resilience

Vietnam’s evolving business landscape reflects a cycle of renewal rather than instability. As competition intensifies and operational challenges grow, many enterprises are learning that survival depends less on speed and more on structure and sustainability.

Instead of pursuing quick expansion, firms are focusing on building stronger internal foundations to withstand volatility and seize emerging possibilities. The current market favors those who adapt in the following ways:

• Long-term planning and disciplined resource management are replacing short-term growth tactics.
• Enterprises with professional leadership and transparent management structures are better equipped to meet rising standards.
• Adherence to tax, accounting, and reporting regulations helps companies avoid costly risks and build investor trust.
• Adopting digital solutions and process improvements allows firms to remain efficient and competitive.
• Market turnover motivates entrepreneurs to refine strategies, enhance efficiency, and improve resilience.

These trends in business exits mark a phase of upgrading and consolidation across Vietnam’s private sector. Market exits are giving way to better-prepared entrants, and the ecosystem is gradually shifting toward higher standards of performance and governance.

Why BBCIncorp services for doing business in Vietnam?

In a year marked by both market exits in Vietnam and new ventures, global entrepreneurs are proving their adaptability and determination. To succeed in a competitive market, entrepreneurs need more than vision. You need the right structure, compliance, and local expertise. And BBCIncorp team makes that possible by providing professional company services. 

BBCIncorp provides complete support to help you run your Vietnam enterprise with confidence:

• Strategic guidance on selecting the most suitable business type and structure for long-term growth.
• Vietnam company formation services: registration, licensing, and documentation to simplify the entire setup process.
• Opening a business banking account for transactions.
• Legal consulting to identify legal, tax, and operational risks.
• Accounting, auditing, and corporate services to optimize costs and improve management efficiency.
• Ongoing compliance services for meeting reporting and other annual regulatory requirements.

With BBCIncorp, businesses can establish operations efficiently and focus on growth instead of paperwork. We will take care of the hassles on your behalf.

BBCIncorp’s expertise in incorporation, compliance, and business advisory enables entrepreneurs to plan strategically, operate efficiently, and grow sustainably in today’s most competitive markets: Hong Kong, Singapore, the U.S., Vietnam, etc. 

Whether you are launching a new venture or expanding an existing business, our team can provide comprehensive assistance to address your unique situation.

For expert consultation on establishing or expanding your business amid market exits in Vietnam, contact BBCIncorp’s team at service@bbcincorp.com. We are prepared to assist you with timely and practical support.

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References:

(1) https://dantri.com.vn/kinh-doanh/hon-190000-doanh-nghiep-am-tham-roi-khoi-thi-truong-tu-dau-nam-20251107083445099.htm

(2) https://vietnamnews.vn/economy/1729107/viet-nam-registers-nearly-18-000-new-enterprises-in-october.html

(3) https://vir.com.vn/vietnamese-businesses-eye-growth-through-public-investment-140465.html 

(4) https://vietnamnews.vn/economy/1725648/evfta-a-strategic-lever-in-global-value-chain.html

(5) https://en.vcci.com.vn/vietnam-reinforces-free-trade-deal-advantages

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