Of 19,000 newly shut down businesses named by the HCM City Taxation Agency, the businesses in the service sector such as food, wholesale and retail comprised the majority. However, a ‘wave of unemployment’ was also seen in Industrial Zones.

Ben Thanh Market, considered the symbol of prosperity of HCM City, has become gloomy with more than 50 percent of stalls having to shut down this year.

There have been no foreign visitors, the major clients, as international flights are banned.

The Phu My Hung Urban Area with many South Korean expats has also become quiet as many shops have shut down and the shop owners have given back retail premises to landlords. It was a busy area with wholesale shops, restaurants, eateries, hotels and beauty salons. But not now shops are closed as it’s unclear when South Korean travelers will come back.

Fashion shops, F&B shops, accommodation and travel service providers have suspended their operation.

According to Q&Me, restaurants and eatery shops are expected to bear the fiercest competition as more and more brands appear in the market every day. However, the number of restaurants has decreased by 16 percent so far this year, partially because of the closure of many brands.

The HCM City Taxation Agency has reported that 19,000 businesses stopped operation in the city in H1. Of these, 3,491 businesses were dissolved, 7,193 businesses suspended operation and 3,397 left from the registered addresses.

These are mostly private businesses, which account for more than 98 percent of all businesses, and businesses which have been operational for three to nine years, which account for 51.6 percent.

These are mostly private businesses, which account for more than 98 percent of all businesses, and businesses which have been operational for three to nine years, which account for 51.6 percent.

Wholesale and retail businesses account for the highest proportion (38.16 percent), followed by enterprises in the manufacturing and processing industries (10.5 percent), construction (9.52 percent) and real estate firms (8.81 percent).

Meanwhile, the Ministry of Industry and Trade (MOIT) reported that revenue from accommodation and food services in H1 decreased by 18.1 percent compared with the same period last year, while it increased by 10.2 percent last year compared with the year before.

The shutdown of a series of businesses can be reflected in the General Statistics Office’s report about the unemployment rate.

The unemployment rate was 2.26 percent in H1, higher than the 1.99 percent rate of 2019. Particularly, the unemployment rate of workers in urban areas in Q2 reached a 10-year high of 4.46 percent.

Mai Lan 

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