Alarming statistic: 13,000 businesses withdraw from market each month

In the first quarter of 2021, the number of businesses withdrawing from the market was higher than the number of newly established ones. The Covid-19 pandemic continues to affect production and business activities in Vietnam.

According to the General Statistics Office of Vietnam (GSO), in the first quarter of the year, the number of newly established enterprises was 29,300, down 1.4%, while the number of businesses withdrawing from the market was 40,323, up 15.5% year on year. On average, 13,400 businesses leave the market every month.

Economic experts said that it is normal for businesses to withdraw from the market. However, for the first time in the past decade, the number of businesses leaving the market is higher than newly formed ones. The main reason is the impact of the pandemic.

According to the report "Assessment of the Covid-19 epidemic’s impacts on Vietnamese enterprises" released by the Vietnam Chamber of Commerce and Industry (VCCI) in mid-March, the Covid-19 pandemic that broke out in early 2020 seriously impacted the production and business activities of local enterprises.

Con số báo động, mỗi tháng hơn 13 nghìn DN rút lui khỏi thị trường

The prolonged Covid-19 pandemic has caused production and consumption to stagnate. (Illustrative image).

According to VCCI, 87.2% of businesses have been affected by the Covid-19 epidemic. Most businesses said that the epidemic had affected their access to customers, cash flow and employees. Many businesses have seen their supply chains broken and cash flow imbalanced, and have had to lay off workers.

The employment market in the first quarter of 2021 was quite gloomy. According to the General Statistics Office, nearly 1.1 million people of working age were unemployed, an increase of 12,100 people year on year. Statistics on the employment situation in Q1/2021 have reflected the difficulties and fluctuations of the economy.

The Vietnamese Government has issued many solutions to support businesses, but many companies have not gotten rid of difficulties. The new wave of Covid-19, which started in late April, has put pressure on production and business activities of many enterprises. According to VCCI, the most affected industries are tourism, retail, passenger transport, motor vehicle production, and beverages. Newly established businesses are the most affected.

Experts said that it is necessary to continue fight Covid-19, and at the same time remove difficulties for businesses and perform institutional reform. Supporting businesses to maintain operations is an urgent solution, they said.

Con số báo động, mỗi tháng hơn 13 nghìn DN rút lui khỏi thị trường

The poor are more vulnerable in the pandemic.

 

On April 19, the Vietnamese Government issued Decree 52/2021/ND-CP on extending the deadline for payment of value added tax, corporate income tax, personal income tax and land rent in 2021 for enterprises, organizations, business households and individuals engaged in production activities in more than 50 fields.

Economist Tran Dinh Thien said that besides financial support packages, and tax relaxation and reduction for businesses, it is necessary to keep the policy environment stable and avoid increasing taxes and fees during this time.

According to VCCI, the most common proposal of businesses is that the Government should not increase taxes and fees.

The increase in taxes and fees affects not only businesses but also people. According to the Institute for Economic and Policy Research (VEPR), Vietnam is a low-middle-income country with per capita income of $3,500/person/year, so increasing taxes and fees will affect everyone, but the most affected will be the poor, who are more vulnerable in the pandemic.

Tax and fee increase also affects the purchasing power and revenue of businesses, leading to a decrease in revenue and job cuts, and an increase in unemployment.

Tran Thuy

Covid-19 hits hard: thousands of job lost and working hours cut

Covid-19 hits hard: thousands of job lost and working hours cut

While carrying passengers from Tan Son Nhat International Airport to Mekong Delta recently, Huy, a worker at a transport firm, talked about Covid-19, noting that this is an unprecedented crisis in her last 20 years of working.

Resilience helps Vietnam overcome year of COVID-19

Resilience helps Vietnam overcome year of COVID-19

Though COVID-19 has sent the global economy into one of its worst recessions ever, Vietnam posted GDP growth of 2.91 percent in 2020 thanks to its solid control of outbreaks and timely support to both enterprises and local people.

 
 

Other News

.
More sci-tech content in upcoming China-ASEAN Expo
More sci-tech content in upcoming China-ASEAN Expo
BUSINESSicon  06/09/2021 

The whole universe hidden in the VR glasses, magnificent images shown on transparent screens, unmanned aircraft applied in seeding and fertilization..., sci-tech exhibition has become the new hot spot in the China-ASEAN Expo (CAEXPO) in recent years.

VIETNAM BUSINESS NEWS SEPTEMBER 4
VIETNAM BUSINESS NEWS SEPTEMBER 4
BUSINESSicon  04/09/2021 

Vietnam scores high in employee experience

Foreign investors keen on education
Foreign investors keen on education
BUSINESSicon  04/09/2021 

Overseas funds continue to cash in on Vietnam’s education sector with a view to diversify investment portfolios.

Rice exporters feel strain of restrictions
Rice exporters feel strain of restrictions
BUSINESSicon  04/09/2021 

The disruption of the production chain in the past few months is pushing rice exporting and processing companies into an increasingly difficult situation.

Garment and textile groups bemoan curbs
Garment and textile groups bemoan curbs
BUSINESSicon  04/09/2021 

With the autumn-winter season coming up, Vietnam’s garment and textile industry could cash in on the increased demand for clothing. 

CAEXPO embraces RCEP opportunities
CAEXPO embraces RCEP opportunities
BUSINESSicon  04/09/2021 

Cooperation is deepened to improve substantial economic and trade results.

E-commerce platform imports billions of US dollars of Chinese goods
E-commerce platform imports billions of US dollars of Chinese goods
BUSINESSicon  04/09/2021 

The Vietnamese Ministry of Finance believes that it is necessary to have regulations to control exports and imports transacted through e-commerce platforms.

Experts propose solutions to supply chain disruptions caused by COVID-19
Experts propose solutions to supply chain disruptions caused by COVID-19
BUSINESSicon  03/09/2021 

A group of experts of the Hanoi-based National Economics University have put forward several immediate solutions to remove bottlenecks and connect disrupted supply chains that have impacted localities hit by COVID-19.

Agriculture Ministry to open new path for farm produce sales
Agriculture Ministry to open new path for farm produce sales
FEATUREicon  04/09/2021 

“We have to figure out a new ‘farm produce path’ that allows us to connect fields and markets,” said Minister of Agriculture and Rural Development Le Minh Hoan.

VIETNAM BUSINESS NEWS SEPTEMBER 3
VIETNAM BUSINESS NEWS SEPTEMBER 3
BUSINESSicon  03/09/2021 

Bubbles heap pain on vital manufacturers

Five-year restructuring plan aims to improve national economic competitiveness
Five-year restructuring plan aims to improve national economic competitiveness
BUSINESSicon  04/09/2021 

The Ministry of Planning and Investment has said that it is coordinating with relevant ministries, agencies and localities to build a national economic restructuring plan for the 2021-2025 period, 

On-line CAEXPO: Exploiting potential of Internet for new growth
On-line CAEXPO: Exploiting potential of Internet for new growth
BUSINESSicon  03/09/2021 

On the platform of on-line China-ASEAN Expo (CAEXPO), ASEAN Pavilion, China Pavilion, and other virtual pavilions can be found on the homepage.

Offshore wind power: unpredictable 'waves' as investors wait for decision on tariff
Offshore wind power: unpredictable 'waves' as investors wait for decision on tariff
FEATUREicon  03/09/2021 

Many offshore wind power investors are holding their breath waiting for the next move of the Ministry of Industry and Trade and the Government.

Vietnam Airlines pilots IATA Travel Pass on flight to Europe
Vietnam Airlines pilots IATA Travel Pass on flight to Europe
BUSINESSicon  03/09/2021 

National flag carrier Vietnam Airlines successfully piloted the IATA Travel Pass on a flight from Hanoi to London on September 2 with the participation of 18 passengers.

Online Vo So platform sells food in HCM City
Online Vo So platform sells food in HCM City
BUSINESSicon  02/09/2021 

After HCM City resumed operation of goods delivery services on August 31, Viettel Post and Vo So e-commerce platform opened an "online market" to provide food and essential goods for people at hcm.voso.vn.

VIETNAM BUSINESS NEWS SEPTEMBER 2
VIETNAM BUSINESS NEWS SEPTEMBER 2
BUSINESSicon  02/09/2021 

Online trade promotion is currently considered as an effective solution for businesses to maintain contacts with their export markets and also a tool to learn about market trends, developments and demand.

Vietnam boosts high-tech industry
Vietnam boosts high-tech industry
BUSINESSicon  02/09/2021 

Vietnam has targeted mastering a number of high technologies to form an ecosystem of enterprises producing high-tech products, and put them into production to increase the export value of high-tech products by 2030.

Government urged to loosen restrictions, speed up vaccinations to save economy
Government urged to loosen restrictions, speed up vaccinations to save economy
FEATUREicon  02/09/2021 

Economic indexes show the situation is getting worse in the country. The most concerning issues are social distancing extensions and other restrictions.

Standard Chartered revises down Vietnam’s 2021 GDP growth forecast to 4.7%
Standard Chartered revises down Vietnam’s 2021 GDP growth forecast to 4.7%
BUSINESSicon  02/09/2021 

Standard Chartered has revised down its forecast for Vietnam’s gross domestic product (GDP) growth this year from 6.5% to 4.7%.

Experts discuss obstacles for rooftop solar power
Experts discuss obstacles for rooftop solar power
BUSINESSicon  01/09/2021 

Solar experts have raised difficulties and problems in policies and procedures for investment, installation and operation of solar power systems in Vietnam at a seminar.

 
 
 
Leave your comment on an article

OR QUICK LOGIN