Thousands of firms hit the wall

Tuesday, Apr 16, 2013 12:06

HA NOI (VNS) — More than 2,270 businesses closed in the first quarter, while ovear 13,000 suspended operations, according to the Ministry of Planning and Investment.

The finance, banking and insurance sector had the highest number of dissolved businesses, followed by education and training and real estate.

Over 15,700 new businesses were established, mainly in the north and the south. This represented a 6.8 per cent year-on-year decrease, according to the ministry's Department of Business Registration.

Total registration capital was VND79.3 trillion (US$3.77 million), down 10 per cent over the same period last year.

The department added that most localities nationwide had fewer new businesses than last year, showing that enterprises still faced difficulties.

Nguyen Van Tung, general director of Da River 6 Corporation, told Dau Tu Chung Khoan that the corporation's profits in the first quarter totaled VND10 billion – the lowest level of the year.

Tung said the corporation aimed for post-tax profits of VND41 billion, which would be an increase of 10 per cent against last year.

Nguyen Thai Binh, a representative from Tay Ninh Rubber Company, said the company would have difficulty reaching its revenue goal of VND901 billion this year because of unexpected changes in the economy and fluctuating rubber prices.

He said the company would continue to expand its rubber-growing areas in Laos and Cambodia while also developing domestic exploitation. — VNS

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