More firms close, fewer open in 2014
More firms close, fewer open in 2014
More businesses in Viet Nam have either suspended or shut down operations in the first three quarters of 2014, according to the General Statistics Office (GSO).
GSO figures showed that the number of enterprises that have either suspended or shut down operations have risen to 48,330, representing a 13.8-per cent year-on-year increase. Of these, exactly 7,027 companies completed disclosure procedures while 8,440 registered for a halt in operations and 32,863 have shut down.
In September, companies that have declared a temporary suspension of operations numbered 4,549, representing a 32-per cent reduction over that of the previous month.
The GSO added that the number of dissolved and suspended companies has risen rapidly while the number of newly-established companies has fallen.
In the first nine months of the year, Viet Nam registered 53,192 newly-established enterprises with a total capital of VND320 trillion (US$15.2 billion). This represents an 8.7-per cent year-on-year decrease in quantity and a 14-per cent year-on-year decrease in capital.
Last month, the country registered 5,542 newly-established companies with a total capital of VND30.6 trillion ($1.45 billion). This represents a 14-per cent month-on-month increase in quantity and a 12-per cent month-on-month increase in capital.
The number of new companies in electricity production and distribution, water and gas increased by 14 per cent while the number of companies in these sectors that have suspended or shut down operations decreased by 26 per cent. The number of new companies in other service sectors increased by 6.3 per cent.
However, the number of companies that have shut down in the retail, wholesale and automobile repair sectors increased by 18 per cent year on year while the number of new companies in the construction sector decreased by 11 per cent year on year as a result of numerous economic difficulties.
The GSO also revealed that during the nine-month period, total registered capital in the economy was VND741.8 trillion ($35.3 billion). This, it noted, was a positive factor, as some businesses were flexible in their search for opportunities and in the expansion of their markets in spite of difficulties.
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