172,000 Businesses Exited Vietnam’s Market in First Nine Months of 2026

Vietnam’s Finance Minister Ngô Văn Tuấn told the National Assembly during a question-and-answer session on November 12 that 172,000 businesses exited the market in the first nine months of 2026, while 222,000 entered or re-entered it. He said some businesses succeed and others fail, making market exits a normal part of business activity. The registered capital of businesses entering the market rose 38% year on year over the same period.

Citing an analysis of approximately 180,000 businesses that exited the market, Ngô Văn Tuấn said about 50% had suspended operations, 30% had completed dissolution procedures and 20% were still completing procedures to cease operations. Among businesses that had suspended operations or dissolved, about 90% were in trade and services, a sector with relatively low barriers to entry and exit; about 89% generated no revenue in 2026, and about 70% had ceased operations before 2026.

Vietnam’s Finance Minister Ngô Văn Tuấn answers questions at the National Assembly.（VietVance）

Ngô Văn Tuấn acknowledged that businesses still face difficulties with market exit procedures, chiefly involving taxes, social insurance and financial obligations to other parties, including lenders. He said he had directed that exit procedures be completed within one day once a business has settled its financial obligations. Asked whether the value-added tax cut would continue into 2027, he said officials would assess business activity and market developments in the final months of 2026 and in 2027 before considering appropriate measures. He did not announce an extension.

On tax arrears, Ngô Văn Tuấn said that, as of the end of October 2026, the annual tax arrears ratio stood at 3%, while the overall tax arrears ratio remained at 11%. Responding to a lawmaker’s figure for unpaid taxes, he said more than half was related to land use fees because of the sluggish property market. The Finance Ministry has set performance targets for tax officials and will improve tax administration rules and strengthen inspections and penalties, aiming to reduce the annual tax arrears ratio to below 5% and the overall ratio to below 8%.

Regarding the use of residents’ personal information to register businesses without their authorization, Ngô Văn Tuấn said a review had found about 8,000 such cases involving businesses established around 20 years ago. The Finance Ministry will continue working with the police to address them. He also said tax authorities or officials should be held accountable if they fail to process a tax refund application that is complete and complies with regulations. Refund applications eligible for the simplified process can currently be completed within seven days.

Source: VietVance