Over 85,000 Businesses Leave Market

9:27:23 AM | 9/10/2021

As many as 85,500 companies terminated operations in the first eight months of 2021, an increase of 24.2% from a year earlier, said the General Statistics Office (GSO). Ho Chi Minh City accounted for the most with 24,000 companies ending their operations, or 28.1% of total.

Of the sum, 43,200 enterprises halted their operations for a definite time, 25.9% more than a year earlier; 30,100 companies stopped operations and waited for bankruptcy procedures, up 24.5%; and 12,200 corporates completed dissolution procedures, up 17.8%.

Sectors that witnessed the largest number of companies leaving the market included automobile and motorbike wholesaling, retail repairing (4,507 companies); processing and manufacturing (1,415 companies); construction (1,080 companies); science, technology, design, advertising and other professional consulting services (732 enterprises); and accommodation and catering services (700 businesses).

In August 2021, the country had 5,761 new companies, which registered to start with VND68 trillion and employ 43,400 workers, down 34.1% in enterprises, 44.6% in registered capital and 39.1% in employees from July 2021; down 57% in enterprises, 76.5% in capital value and 54.9% in hiring from the same period of 2020.

On average, a new company registered to invest VND11.8 billion, down 16% from the previous month and down 45.3% from the same period last year.

By Thu Ha, Vietnam Business Forum