Nearly 17 per cent of Vietnamese Businesses Go Bankruptcy
Vietnam now has more than 421,000 businesses, but only 345,000 are paying taxes. This shows that nearly 17 per cent of local firms have stopped operation, according to the Ministry of Planning and Investment (MPI).
The rate of 17 per cent is quite low compared to other economies such as Taiwan and South Korea, the MPI said.
In other countries, procedures for enterprise liquidations are quite simple, but in Vietnam, the process is very complicated. Therefore, Vietnam sees a low rate of dissolved businesses.
In the first five months of this year, Vietnam licensed 34,800 new businesses with 2,400 of those shutting down. (Investment & Securities)
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