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Business closures rise due to Covid-19
The Saigon Times
Saturday,  Mar 28, 2020,13:47 (GMT+7)

Business closures rise due to Covid-19

The Saigon Times

Workers at a clothing factory - PHOTO: VNA

HCMC - Vietnam has seen 18,600 businesses suspend operations in the first quarter of 2020, up 26% year-on-year, due to the coronavirus outbreak.

According to the General Statistics Office, many businesses nationwide have taken a hit from the pandemic.

There are 12,200 enterprises awaiting dissolution, down 20.6% year-on-year, while 4,100 others have completed the procedures for disbandment, equivalent to the number in the same period last year.

Businesses in the processing and manufacturing industry expected that the pandemic will soon end and economic growth will rebound in the second half of 2020.

Nearly 21% of them said their business performance in the first quarter of this year has been better than the same period last year, while over 37% said their business performance has stayed the same, and 42% said they have faced many difficulties.

The General Statistics Office report showed that there have been 29,700 newly-established firms, with registered capital totaling VND351.4 trillion in the first quarter, up 4.4% in terms of quantity and down 6.4% in terms of capital, year-on-year.

Further, active businesses have registered to increase their charter capital by an additional VND552.4 trillion.

Some 14,800 enterprises have resumed operation, down 1.6% year-on-year.

Nguyen Dinh Thuy, head of the Industrial Statistics Department, said the government should take prompt measures to support businesses, especially small- and medium-sized enterprises and household businesses heavily affected by the coronavirus.

Incentives, such as tax exemptions or extensions, import and export tax reductions, employment subsidies and unemployment insurance should be prioritized for key sectors, including tourism, transport and agriculture.

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