Firm closures outnumber start-ups
Firm closures outnumber start-ups
The total number of dissolved and bankrupt businesses was higher than that of newly established firms in the first eight months of the year.
The Ministry of Planning and Investment said that in August, the country has more than 5,000 newly established companies with a total registered capital of VND27.3 trillion (US$1.3 billion), a fall of 0.6 per cent and 13.2 per cent respectively over the previous month.
The average registered capital this month was VND5.4 billion ($257,000) each, a fall of 13 per cent over July. The expected number of labourers fell 9.8 per cent to reach 79,400.
The ministry said the number of dissolved enterprises or those which suspended operations this month rose to 6,681, posting a 35.5 per cent increase in comparison with July, and exceeding the number of new firms.
Of these 6,681 firms, 755 businesses were dissolved, while the remaining had suspended operations.
However, the ministry said that there were some positive signs as the number of businesses that resumed operations this month posted a 35.2 per cent increase, at 1,496, despite fall in the number of newly established firms and registered capital.
In total, Viet Nam has 47,500 newly established companies with a total registered capital of VND289 trillion ($13.7 billion), posting a 9.5 per cent and 14.2 per cent year-on-year decreases respectively in the January-to-August period.
The average registered capital in the period was VND6.1 billion ($290,000) each, increasing 26 per cent over the corresponding period last year. The number of workers which the businesses expected to employ was 708,500.
About 44,500 enterprises were dissolved or suspended operations in the eight months, a 12.9 per cent increase against the same period last year.
The ministry also revealed that the total registered capital of the new businesses was VND339.2 trillion ($16.1 billion). The total additional capital was VND658.5 trillion ($31.3 billion).
The country also saw 10,900 businesses resume operations, representing a 2.6 per cent year-on-year increase in the period.
Some industries showed positive signs such as distribution, electricity, water and gas companies, with the increasing number of newly established firms.
Other sectors such as entertainment, seafood, agro-forestry, real estate and communications were involved in drastic restructuring as there was a large number of dissolved businesses.
Several industries faced difficulties, such as those in wholesale, retail, automobile repairing, automobile, tourism, construction and other services.
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