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Wednesday, June 19, 2024

Over 85,500 firms pull out of market in Jan-Aug

The Saigon Times

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HCMC – Over 85,500 businesses have withdrawn from the market between January and August, up 24.2% year-on-year, according to data from the General Statistics Office.

On average, some 10,700 firms left the local market each month during the eight-month period.

Of the firms that pulled out of the market, 43,200 have temporarily suspended their business activities, up 25.9% versus the same period last year. Some 30,100 other enterprises have halted operations pending dissolution, up 24.5% compared with last year’s figure, while 12,200 others completed procedures for disbandment, rising by 17.8% year-on-year.

The number of firms withdrawing from the market in HCMC accounted for 28.1% at 24,000, up 6.6% year-on-year.

As many provinces and cities nationwide adopted social distancing in August to slow the spread of Covid-19, making life more difficult for business, the number of firms leaving the market was higher than that of newly-established companies.

In August, over 5,760 firms were newly established nationwide and pledged capital of over VND68 trillion, dipping by 57% in number and 76.5% in capital year-on-year.

Meanwhile, August saw more than 6,440 enterprises withdraw from the local market, down 18.9% year-on-year. More than 3,860 firms returned to the market this month, down 19.1% year-on-year.

Between January and August, as many as 81,600 businesses were established across Vietnam, with total registered capital of over VND1,130 trillion, dropping by 8% in number and 7.5% in capital value year-on-year.

During the eight-month period, the number of firms that resumed operations inched down by 0.6% year-on-year at 32,400.

The increase in the number of firms that withdrew and the decline in newly-established enterprises were attributed to the impact of the current fourth wave of Covid-19 and the extension of the social distancing period, according to the General Statistics Office.

By Dung Nguyen

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