At the same time, however, more businesses are leaving the market, profitable businesses do not outnumber those reporting losses, and the vast majority of enterprises remain small in scale.

This picture indicates that Vietnam's corporate sector has not lost its appeal, but its internal health remains fragile. The pressing issue today is not merely how many new enterprises are established, but how many can survive, accumulate capital, and scale up.

Statistics show that 169,842 enterprises entered or re-entered the market in the first six months of 2026, an 11.2 percent increase compared to the same period last year. Capital scale among new enterprises also improved, with average registered capital rising by 35.7 percent.

However, behind these positive signals lies growing pressure on the business community. As many as 151,067 enterprises withdrew from the market, up 18.8 percent, outpacing the rate of entry. Developments in June also highlighted a clearer screening trend as new business incorporations dropped, even while total capital among new entrants grew sharply.

As a result, the health of Vietnamese businesses should no longer be measured by the number of new registrations, but by companies' ability to survive, expand, and achieve sustainable growth.

More businesses, but not healthier

Pham Ngoc Thach from VCCI, said that, of the more than one million active businesses nationwide, around 420,000 reported profits while about 432,000 reported losses. This indicates that many businesses are still unable to generate sufficient profits to accumulate capital and reinvest.

The root of the issue lies in the structure of businesses. Around 70 percent of private domestic businesses have registered capital of less than VND10 billion, while 81.4 percent employ less than 10 workers. Most businesses remain very small, with limited resources and little ability to build competitive advantages.

This is clearly reflected in their business performance. The average profit margin of private domestic businesses stands at just 2.22 percent, far below the 5.25 percent recorded by FIEs and 8.3 percent by SOEs. With such thin margins, Thach noted, even minor fluctuations in market conditions, costs, or interest rates can quickly push businesses into financial distress.

A VCCI survey found that the biggest challenge facing businesses today is seeking market. As many as 60.2 percent of respondents said they struggle to find customers and secure markets for their products.

Even when orders are available, access to credit remains a major obstacle. About 75.5 percent of businesses reported difficulties obtaining bank loans, while 93.5 percent of lending still requires collateral. 

The same picture is reflected among business households. Vietnam currently has around 6.1 million business households, employing nearly 10 million workers. While this sector plays a vital role in the economy, its resilience remains fragile, with 73.7 percent reporting only modest profits.

Against a backdrop of continued global economic uncertainty, that resilience is being tested further. As many as 53.5 percent of manufacturing businesses said their export orders had declined due to volatility in international markets.

Overall, Thach said, Vietnam's businesses remain "large in numbers but not yet strong." The number of businesses continues to increase, but small scale, low profitability, limited capital accumulation, and weak resilience remain persistent challenges.

Improving policy implementation

In the first half of 2026, VCCI received 879 complaints related to laws and regulations. Among them, 51.4 percent cited unclear or impractical regulations, 36.7 percent said compliance costs remained too high, and 11.8 percent pointed to overlapping or conflicting legal provisions.

There are, however, encouraging signs. In 2025, a total of 3,085 administrative procedures were either eliminated or simplified. Business satisfaction with online public services also reached around 90-91 percent, indicating that administrative reforms are progressing and beginning to produce tangible improvements.

Thach pointed out some prompt solutions.

The first is improving access to working capital by gradually shifting from collateral-based lending toward lending decisions based on cash flow and business viability.

For household businesses, compliance costs related to taxation, accounting, and electronic invoices should be reduced while creating an appropriate roadmap to help eligible household businesses transition into formal enterprises. To cope with external shocks, businesses also need greater support in lowering logistics costs, diversifying supply chains and export markets, and making more effective use of economic diplomacy.

On institutional reform, the focus should shift from simply counting the number of administrative procedures eliminated to evaluating the quality of policy implementation, while expanding post-audit supervision instead of relying primarily on pre-approval controls.

Lan Anh