VietNamNet Bridge – The number of enterprises suspending operation and dissolving business in the first quarter exceeded the number of newly-established ones, signaling a year full of difficulties for the economy.

According to a report of the Ministry of Planning and Investment, there were up to 15,839 enterprises suspending operation or declaring bankruptcy in the first quarter compared to 15,707 newly-established ones.

Among these, 2,272 enterprises completed procedures for dissolution. Provinces and cities having largest numbers of dissolved enterprises were HCMC with 692, Hanoi (315), Thai Binh (185) and Khanh Hoa (101).

Besides, among over 13,000 enterprises suspending operation, up to 3,567 enterprises registered for temporary suspension while there were 9,444 enterprises stopping operation but not completing procedures. The number of enterprises with operation suspension in the first quarter rose by over 26% year-on-year.

HCMC had the highest number of enterprises suspending operation with 4,434, followed by Hanoi with 3,369, Haiphong with 457 and Danang with 392.

According to the report, most of traditional business sectors saw a rise in numbers of enterprises suspending operation compared to the same period last year.

In the sectors of wholesale, retail and auto-motorcycle repair, there were 5,970 enterprises suspending operation, up nearly 12% while the respective figures of the construction sector were 2,296 and 18%.

The manufacturing-processing sector saw 1,966 enterprises suspending operation, up 5% year on year, while the sector of job placement, travel, machinery-equipment leasing had 942 enterprises suspending operation, up 22% on-year.

Besides, the sectors having a high increase in the number of enterprises suspending operation were finance-banking-insurance with over 134%, education and training with over 51%, art and entertainment with nearly 54%, real estate with nearly 48%.

For new business startups, the picture is also gloomy.

The report shows that the total registered capital of 15,707 newly-established enterprises in the first quarter was VND79.389 trillion, down nearly 7% in number of enterprises and over 16% in registered capital compared to last year’s first quarter.

Besides, the average capital of a new enterprise in the first quarter continued to decline with a year-on-year drop of 10% and a quarter-on-quarter drop of 19%.

Source: SGT