More than 89,000 VN businesses leave market in 2019
The number of businesses established in 2019 increased by 5.2 percent, but the number leaving the market rose more sharply, by 20.2 percent, compared with 2018.
The Ministry of Planning and Investment (MPI) reported that 138,140 businesses were established in 2019 and 89,282 businesses left the market in 2019.
Of the businesses leaving the market, 28,731 businesses halted operation for definite time (up by 5.9 percent), 43,711 businesses were waiting for dissolution (up by 41.7 percent) and 16,840 businesses fulfilled the procedures for dissolution (up by 3.2 percent). 7,440 businesses left the market every month.
Of the businesses that halted business for definite time, 598 were real estate firms (up by 36.8 percent), 265 businesses in the finance & banking and insurance sector (up by 25 percent), 166 in electricity, water and gas production and distribution sector (19.4 percent), 1,502 in job service, tourism, machine and equipment leasing and other supporting services (14.6 percent) and 3,656 in processing and manufacturing industry (10.8 percent).
|The Ministry of Planning and Investment (MPI) reported that 138,140 businesses were established in 2019 and 89,282 businesses left the market in 2019.|
Of 43.711 businesses waiting to be dissolved, 17,700 had business registration certificates revoked, nearly 14,500 businesses were informed about the dissolution and 11,500 businesses were waiting to work with taxation agencies for dissolution.
The businesses of this group mostly operated in the fields of wholesale and retail, automobile and motorbike repair (15,996 businesses, which accounted for 36.6 percent), construction (6,058 businesses, 13.9 percent) and manufacturing and processing industry (5,376 businesses, 12.3 percent).
Real estate firms also accounted for the highest proportion among the 16,840 businesses fulfilling the procedures for dissolution (686 businesses, up by 39.4 percent), while healthcare and social assistance activities (103 businesses, 47.1 percent) and finance & banking and insurance (208 businesses, 30.8 percent) also increased.
About 46,840 businesses were found not operating at the addresses registered with the agency, an increase of 43.4 percent compared with 2018.
These businesses mostly operated in the fields of wholesale and retail, automobile and motorbike repair (16,035 businesses, 34.2 percent), construction (7,181 businesses, 15.3 percent) and processing and manufacturing industry (5,561 businesses, 11.9 percent).
Thoi Bao Kinh Te Sai Gon commented that 89,200 dissolved businesses in 2019 were much higher than that of the year before and it is necessary to reconsider the business environment.
A survey by VCCI found that the business environment has improved significantly, but many problems still exist, including policies and enforcement.
In the third quarter of 2019 alone, VCCI received 333 complaints from businesses, most of which had relations with laws and proposals to amend policies.
Fifty percent of 6,000 business conditions have been cut, but 18 percent of polled businesses still complained it took them more than one month to fulfill the procedures related to production and business.
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