Shutdowns exceed 60,000 in 11 months

According to the General Statistics Office (GSO), a total of 8,661 enterprises completed dissolution procedures while 10,147 others registered for temporary suspension and 41,532 were either suspended while awaiting business codes or failed to register. — Photo Vneconomy

HA NOI (Biz Hub) — Vietnamese businesses that have either been dissolved or have suspended operations in the first 11 months of 2014 numbered more than 60,000, a 9.8-per cent year-on-year increase.

The GSO figures indicate that the business community has been facing numerous difficulties, including competition pressure.

The statistics office revealed that dissolved or suspended enterprises had been increasing in number since 2013 while enterprises in the black either retained the level of their operations or sought new opportunities.

GSO figures also showed that from January to November, the number of new businesses in Viet Nam reached 67,790, a 4.5-per cent year-on-year decline, while the total registered capital of these new businesses reached VND391.3 trillion (US$18.6 billion), an 8.9-per cent year-on-year decline.

The average registered capital of a newly established enterprise reached VND5.8 billion ($276,000), a 14-per cent year-on-year increase, while the total number of employees of these new businesses was estimated to be 992,000, a 1.9-per cent year-on-year increase.

The GSO noted that in terms of capital, the number of new businesses established this year had increased year-on-year, suggesting that the country's business environment had improved and boosted the business community's confidence.

The number of businesses that have resumed operations following a temporary shutdown numbered more than 14,200, an 11.8-per cent year-on-year increase that indicated economic recovery.

The GSO proposed stronger Government support to help businesses overcome difficulties and achieve stable development. It also urged companies to strive to resolve their own shortcomings. — VNS