The nation is expected to see some 100,000 enterprises shutting shop by the end of this year – Photo: An Thy

The figure may hit a record high, suggesting that local businesses are vulnerable to unfavorable conditions, especially the heavy impact of the Covid-19 pandemic.

As per the latest report of the Business Registration department under the Ministry of Planning and Investment, about 8,300 firms pulled out of the market in October alone, of which nearly 3,300 companies signed up to temporarily suspend operations, over 3,500 halted operations to complete dissolution procedures and over 1,400 were dissolved.

The number of companies suspending operations jumped 57.9% over the same period last year and much higher than the average in October between 2015 and 2019 at 15.9%, indicating that Vietnamese firms were suffering from the adverse impacts of the ongoing pandemic, said the department.

Among the nearly 3,300 firms that suspended operations last month, enterprises active in the wholesale-retail sector accounted for 36.3%. In fact, many retailers have closed shop and returned their premises to tenants due to low consumer demand.

Between January and October, Vietnam saw over 85,500 enterprises shutting down, including more than 41,700 firms temporarily suspending operations, up 58.7% year-on-year.

Meanwhile, some 30,200 firms were awaiting dissolution and over 13,500 had completed dissolution procedures, equivalent to last year’s figures. On average, more than 8,500 enterprises withdrew from the market each month, up 15.1% compared with 2019.

According to the department, the number of firms suspending operations increased in all 17 sectors. Of the figure, over 15,500 were wholesale-retail, automobile and bike repairing businesses, up 52.5% year-on-year.

The construction sector ranked second with over 5,700 firms and a 52% rise, followed by the accommodation and restaurant sector with 2,600 firms and an 86.2% increase and science, technology, consulting, design and advertising with nearly 2,600 firms and a 62.8% surge.

The job placement, tourism and equipment and other supporting services sector reported over 2,500 firms, soaring 85.4% year-on-year. Meanwhile, the real estate trading industry saw nearly 1,200 enterprises suspending operations, up 118% year-on-year. SGT

Hung Le

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