Employees work at a footwear manufacturing plant in Vietnam. The number of firms withdrawing from the local market in April surged by 30% year-on-year, while the establishment of new enterprises plunged by 47% – PHOTO: VNA

The country is expected to struggle to meet the target of hosting one million enterprises this year.

There were more than 7,880 firms newly established with total registered capital of VND93.8 trillion in April, down 43.8% in value against the same period last year, marking the lowest number of new market entrants over the past four months, according to the Business Registration Agency.

However, some 3,810 firms resumed operations in April, up 40.4% year-on-year, showing some positive signs when Covid-19 was brought under control.

Meanwhile, the number of firms that withdrew from the market in April hit 7,270, with over 4,120 enterprises having temporarily suspended their businesses, up 65.2% year-on-year.

Apart from this, among the withdrawn firms, some 2,160 halted operations pending dissolution, while 980 others completed procedures for disbandment, up 13.8% and down 17.6%, respectively, compared with the year-ago figures.

Over the last four months, some 37,600 new businesses were established nationwide, down 13.2% year-on-year, while over 41,400 firms were hit hard by the coronavirus pandemic and withdrew from the local market, up 5.6% from the year-ago figure.

Data from the Business Registration Agency indicated that realty firms; businesses active in the entertainment and arts sector; lodging and catering service providers; schools, universities and training centers; tour operators; and transport, logistics and storage service firms were hit the hardest by the pandemic.

Over the first four months of 2020, over 600 property firms temporarily stopped their operations, skyrocketing by 109% year-on-year, while the number of travel firms forced to suspend operations reached over 1,300, surging by 50.5%.SGT