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Friday, August 19, 2022

More businesses exit market after fourth Covid wave

By Le Hoang

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HCMC – There had been 94,600 poor-performing businesses pulling out of the market in the year to July, up nearly 15,000 units against the same period last year when the Covid pandemic was battering the country, according to data from the Ministry of Planning and Investment.

Of them, 56,000 enterprises temporarily suspended operations, up 39.2% year-on-year; 28,200 others were pending dissolution, up 0.6%, and nearly 10,400 already dissolved, down 9%.

In the first seven months of last year, close to 80,000 businesses across the country left the market, rising over 25% against the same period in 2020.

Rising input and transportation costs have left a negative impact on their operations, said the ministry.

According to experts, they attributed the business closures partly to uncertainties at home and abroad, including the Russia-Ukraine military conflict, the Covid pandemic and supply chain disruptions.

Between January and July this year, the country saw 89,400 new firms established and 44,300 others resuming operations, up 17.9% and 26.8% versus 2021, respectively.

In July alone, there were nearly 13,200 newly-founded companies, dipping 0.7% year-on-year. According to the ministry, the number of newly-established firms fell in three successive months.

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