January business shutdowns up 23%
January business shutdowns up 23%
Nearly 11,000 businesses were dissolved or suspended their operations in January, reflecting a 23 per cent increase from a year ago, according to the General Statistics Office.
Of these, the number of dissolved firms, which were mostly small-and medium-d enterprises (SMEs) was 993, with a registered capital of less than VND10 billion (US$470,000), while more than 9,700 companies suspended operations.
However, the official figures revealed that over 2,800 businesses had resumed operations.
Around 6,900 enterprises were newly established, with a total registered capital of VND31.7 trillion ($1.48 billion), representing 27 per cent drop from last year.
Accordingly, the average registered capital was pegged at VND4.6 billion for each company, down 20 per cent in comparison with the same period last year.
In addition, the number of labourers for newly-established companies slipped by 7.4 per cent from the corresponding period last year.
Notably, some sectors saw a growth in the number of new firms, such as entertainment with 147 per cent, education and training at 45 per cent and real-estate trading at 42 per cent.
The sectors of healthcare, electricity, gas and water distribution, as well as mineral exploration, wholesale, retail, and automobile repairs, saw fewer new companies being opened.
GSO said the number of labourers in localities with a big industrial scale, including Thai Nguyen, Hai Duong, Binh Duong, Dong Nai, as well as Quang Nam, Hai Phong and HCM City sharply surged from the same period last year.
