In the first 7 months of 2025, an average of 24,900 newly established and returning to operation enterprises per month. However, during that time, an average of 20,600 businesses withdrew from the market each month, mainly small and micro enterprises.
This shows that the business ecosystem is not enough to "nurture" young entities. Meanwhile, the number of newly registered business households is still increasing sharply, showing that people continue to choose a simple, easy-to-operate model with less problems with regulations.
Vietnam currently has more than 5 million individual business households - a huge potential force that can become enterprises, contributing to expanding production, increasing budget revenue and creating more jobs.
However, the process of "upgrading" from business household to enterprise is still taking place slowly. The reason is not the will of the businessman, but lies in the barriers to procedures, legal conditions and delays in the actions of the management agency.
In Official Dispatch No. 127/CD-TTg issued on August 4, 2025, Prime Minister Pham Minh Chinh has issued a final directive: Ministries and branches must urgently fix errors in the information system for business registration, tax, household registration, licensing, etc., to be completed before August 15 to ensure the smooth operation of the two-level local government model. Previously, Resolution 66/NQ-CP also required a minimum reduction of 30% of business conditions and administrative procedures in key areas. However, up to now, there are still 6 ministries and ministerial-level agencies that have not completed the cutting plan.
The Prime Minister has repeatedly emphasized the need to " consider businesses as service objects" and "all administrative procedure reforms must be measured by the satisfaction of people and businesses". But if ministries continue to cut scattered, lacking the system; if localities continue to do it in different ways; if data systems are still cut off, lacking connectivity - then each time of converting from household to enterprise is still a struggle rather than a light start.
We cannot expect a dynamic economy if people and businesses are stuck in the matrix of procedures and documents. It is impossible to mention the entrepreneurial spirit if business people do not dare to step into the "official playground" for fear of being inspected, audited and burdened with compliance. Not to mention, there have been reports in some localities about the unfairness of local leaders, when favouring large enterprises and " indifferent" to small enterprises and startups.
Removing mechanisms, shortening procedures, streamlining processes - that is no longer a necessary thing to do, but a must be done immediately.
We have had many resolutions, plans, and strategies. Now is the time to act specifically - first of all, create easy, transparent, and airy conditions for businesses to "upgrade" and not be left behind.
The deadline set by the Prime Minister on August 15 is not long, but it is an order that must be done, from ministries, branches to localities, because only then can the road be wide, promoting and encouraging business households to "go beyond sports" and turn themselves into businesses.
