OVER 83,000 FIRMS SUSPEND OPERATIONS IN 11 MONTHS

So far this year, some 121,000 companies have been established, while more than 83,000 have suspended their operations, according to the Business Registration Agency under the Ministry of Planning and Investment.

Data indicate that the January-November period recorded the establishment of 121,248 companies, with registered capital of some VND1,234 trillion (US$53 billion), marking respective increases of 4.5% and 9.1% from a year earlier.

Each company registered an average of VND10.2 billion (roughly US$430,000) in capital, 4.1% higher than the year-ago period.

Meanwhile, operational companies registered an additional VND2,198 trillion to fund their expansion plans, raising the total newly pledged capital to more than VND3,426 trillion (US$147 billion) during the period.

In addition, the number of companies resuming business rose by some 31% year-on-year to roughly 31,800, bringing the total number of newly registered enterprises and those resuming operations in the 11-month period to more than 153,000.

The new firms registered to employ 1.1 million people, down 4.5% compared with the same period last year.

Some 42,600 companies entered the wholesale, retail and automobile and motorbike repair sectors, accounting for 35.1% of the country’s total, while the construction, processing and manufacturing sectors as well as consulting, design and advertising services have also drawn numerous enterprises.

On the other hand, the period also witnessed a 49.3% rise in the number of enterprises suspending their operations, reaching more than 83,100. Over 14,800 companies have already completed procedures for dissolution, marking a year-on-year rise of 37.4%.

Most of the ineffective firms operated in the wholesale, retail and automobile and motorbike repair sectors; construction; and the processing and manufacturing industries.

Source: The Saigon Times