A man drives past a store that has been closed down in HCMC. Reeling under the impact of the Covid-19 pandemic, 430 businesses exited the market every day in the first four months of 2021

The Covid-19 pandemic is continuing to heavily impact the economy, indicated by the surging number of businesses withdrawing from the market. Nearly 51,500 businesses were shut down in the first four months of the year, soaring 23.3% compared with the same period last year.

Among them, 28,349 businesses registered to temporarily suspend their operations, accounting for 55.1% of the total. Over 16,400 businesses halted their operations pending dissolution, rising 17.5% year-on-year and 6,744 completed procedures for disbandment, increasing 32.2% year-on-year.

The Business Registration Department under the Ministry of Planning and Investment said many businesses decided to temporarily suspend operations to seek a new direction or wait for the implementation of the Government’s rescue policies.

The pandemic affected not only small and medium enterprises but also large ones. The number of businesses with a capital of over VND100 billion that had to shut down surged 49.1% year-on-year.

The sectors with a large number of businesses exiting the market were the production and distribution of electricity, water and gas, education and training, real estate, tourism, job services, information and communications, mining, science and technology, agriculture, aquaculture and fishery.

On the other hand, 44,166 businesses were established in the first four months of the year, rising 17.5% compared with the same period last year.

According to the Provincial Competitiveness Index Report released by the Vietnam Chamber of Commerce and Industry on April 10, more than 87% of surveyed companies, including both domestic and foreign invested ones, said they were majorly affected by Covid-19.

Business leaders said the new Covid-19 cases reported recently have complicated the situation, while their companies have not recovered from the previous outbreaks. Some cities and provinces have decided to stop certain services such as karaoke parlors, bars, dance clubs, massage centers, music shows and cinemas to curb the spread of Covid-19. 

SGT

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