Business closure hits record high amid pandemic

Saturday, Jan 02, 2021 08:34

Many stores in downtown HCM City have closed. — VNA/VNS Photo

Business closures hit a record high this year of 101,700, 13.9 per cent higher than last year, according to the General Statistics Office.

Of them, 46,600 have suspended operations temporarily.

Nearly 17,500 completed dissolution procedures, up 3.7 per cent, while nearly 37,700 registered to stop business operations and start dissolution procedures.

Temporary business closures rose in all 17 industries, with retail and wholesale, auto and motor repair, construction, lodging and catering, employment services, tourism, property, education and training, and entertainment having high rates due to the impact of the COVID-19 pandemic.

Some 30,000 of the enterprises that registered to stop operations to undertake dissolution procedures were small with registered capital of VND 0-10 billion (US$0-460,900).

The number of newly established businesses this year declined by 2.3 per cent to 134,900 with combined registered capital of VND2,200 trillion ($94.83 billion), up 29 per cent.

The average registered capital of new enterprise this year is estimated at VND 16.6 billion ($715,000), up 32.3 per cent from last year. — VNS

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