AKP Phnom Penh, May 07, 2025 —

The first months of 2025 have seen increases in both new business registrations and firms returning to the market, Deputy Finance Minister Tran Quoc Phuong said at the Government’s regular press briefing for April on May 6.

The official highlighted that the first quarter of this year saw the registration of 36,400 new businesses, on par with 2024 but up around 1.2 times compared to same time in the 2017–2023 period. Notably, the amount of newly-registered capital also rose by about 1.5% year-on-year.

Explaining this surge in entrepreneurial activity, Phuong pointed to four main factors. First and foremost, he noted a marked improvement in business sentiment, driven by confidence in both the production environment and broader economic outlook. The economy continued to strengthen, as reflected in tangible results and the leadership of the Government and Prime Minister, he said.

That confidence, he added, is being fuelled by ongoing reforms, including legal and institutional overhauls carried out in 2024 and early 2025. The ongoing ninth session of the National Assembly is expected to further this momentum. These institutional reforms are making a real difference - cutting red tape, resolving regulatory bottlenecks, and paving the way for more dynamic business activity, he said.

Second, businesses are placing trust in leaders’ commitment to unblocking stalled investment projects. This is critical, as many initiatives are awaiting concrete solutions to resume and deliver value, said the official, noting that major investors are increasingly confident that the State and Government are working to create a more enabling environment.

The third driver is the Government’s strong economic ambition, he underlined. The country is aiming for 8% GDP growth in 2025, with a long-term goal of achieving double-digit growth over the next five years. This demonstrates serious resolve and comes with a raft of supportive policies to reinforce investor and business confidence, he noted.

Fourth, Phuong underscored the strategic importance of the Politburo’s recent Resolution 68-NQ/TW, aimed at promoting private sector growth. This shows a clear, high-level commitment to enhancing the role of private enterprise in the national economy, he said.

These positive signals have all contributed to the spike in new business registrations and reactivations seen early this year, Phuong concluded.

Turning to questions from the press on the potential upgrade of Vietnam’s stock market, Phuong reaffirmed that this remains a priority for the Government. Under the strategic development plan for the securities market through to 2030, the Ministry of Finance and the State Securities Commission have been actively pushing to shift Vietnam from a frontier market to emerging market status.

There are two parallel tracks in this process - engaging with ratings agencies such as FTSE and MSCI, and gaining the confidence of international investors. Vietnam has already met the technical criteria set by these agencies. However, the ultimate decision rests with investors’ assessment of the market’s practical performance, Phuong explained.

To build on that progress, the Finance Ministry is rolling out several major initiatives to enhance investor trust and meet international expectations. Among them is the launch of the KRX system, a comprehensive information technology platform designed to modernise transaction processing and mitigate risks for foreign investors.

On April 26, the Ministry issued Circular 18 to align regulations with FTSE Russell’s recommendations, notably allowing foreign institutional investors to buy shares without pre-funding.

It is also revising Decree 155/2020 to clarify foreign ownership limits and enhance transparency. Additional reforms include central counterparty clearing, easier account opening, and omnibus accounts for foreign funds. Efforts are underway to boost asset supply, fast-track IPOs, and launch new indices. A policy dialogue group will support these upgrades, with expected results by September 2025, stated Phuong.

AKP-VNA