Vietnam could fall short of 2020 target of 1 million businesses
Vietnam could fall short of 2020 target of 1 million businesses
Vietnam could miss its target of having one million businesses this year since the coronavirus pandemic has caused many to shut down.
A worker irons face masks in a factory in Tan Binh District, Ho Chi Minh City on April 21, 2020. Photo by VnExpress/Nguyet Nhi.
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There are likely to be 900,000 by the end of this year, Nguyen Bich Lam, director general of the General Statistics Office (GSO), said
The number of startups fell by nearly 20 percent year-on-year in the first four months, he said at the release of the White Book on Vietnam businesses on Tuesday.
In the first quarter the number of companies suspending business was 18,600, while the number of newbies rose by 4.4 percent to 29,700, data from the GSO shows.
In the event, meeting the one-million target would be challenging, Lam said.
The government had set the target in 2016, but experts have been warning it could be too stiff to achieve due to the rising number of businesses that have been shutting shop in recent years.
But Lam said the number of companies is only one aspect and other factors that need to be taken into account are the quality of businesses and their technology use.
Vietnam had 758,600 companies at the end of last year, up 6.1 percent from 2018 year, data from the White Book shows.
Of these, 67 percent were in the service sector, followed by industry-construction (32 percent) and agriculture-forestry-seafood (1 percent).
The majority of them, 94 percent, were small and micro businesses.
But 73 percent of business revenues went to large corporations, which only accounted for 2.8 percent of the total number.
