Over 10,000 firms shut down in eight months
Over 10,000 firms shut down in eight months
The number of firms shuttered between January and August has increased by 15.5% from a year earlier to some 10,600, according to the General Statistics Office (GSO).
The GSO noted in its latest report on the national socioeconomic performance that the eight-month period saw some 9,500 firms capitalized at less than VND10 billion (US$431,000) being shut down, accounting for 90.3% of the total number of those going bust.
Some 4,300 firms went out of business in the wholesale, retail and automobile and motorbike repair sectors, making up 40.4% of the country’s closed businesses.
Following these were the processing and manufacturing industries with some 1,100 firms, or 10.8%, and construction with over 1,000 firms, or 9.8%.
During the period, more than 20,100 firms temporarily suspended their business activities, and nearly 26,000 firms are pending the completion of closure procedures.
A recent survey by the Vietnam Chamber of Commerce and Industry revealed that difficulties in finding suitable markets, low competitiveness among domestic firms and products, and limited access to financial and labor resources were among the main factors behind enterprise liquidations and suspensions.
The GSO report also found that nearly 116,000 firms were newly established or had resumed operations in the January-August period, up 7% from a year earlier.
Among these, the country had roughly 90,500 startups with combined registered capital of VND1.15 quadrillion (US$49.6 billion), up 3.5% and 31%, respectively, from the year-ago period. Each had an average of VND12.7 billion (US$548,500) in capital, marking a year-on-year rise of 26.6%, the highest in recent years.
Operational firms also registered an additional VND1.603 quadrillion (U$69 billion) to finance their expansion plans, bringing the total freshly pledged capital to some VND2.754 quadrillion (US$118.8 billion) in the period.
In addition, the number of firms that reopened their doors following a suspension rose by 21.8% year-on-year to some 25,500, bringing the total number of new businesses and enterprises resuming operations within the eight-month period to nearly 116,000.
The GSO stated that most of the new firms had entered the agriculture, forestry and fisheries, industry and construction, and services sectors. They intended to employ some 832,300 people, up 13.3% compared with the same period last year.
