Former employees gather outside a bankrupt business in Ha Noi. About 6,700 companies in the city have gone out of business or halted operations so far this year. — Photo congan.com.vn

HA NOI (Biz Hub)— About 6,700 enterprises in Ha Noi went bankrupt or ceased operations in the first eight months of this year, according to the municipal taxation department.

In the same period, 9,584 firms were also launched. However, most are so far operating below the tax threshold.

Of the 6,7000 closures, 326 shut down, 3,932 disappeared without trace and another 2,395 businesses temporarily folded operations.

The department said the key reason for the closures was the negative impact of the global economic downturn and difficulties within the domestic economy itself.

Ha Noi authorities have tried many solutions to help enterprises, such as Government Resolution No 02/NQ-CP and Ministry of Finance Circular No 16/2013/TT-BTC about removing difficulties associated with production, sales and marketing - and bad debts.

However, business activity remained in the doldrums. Inventories in some sectors remained high, especially in real estate and building materials.

By the end of August, the city's total domestic tax collection was estimated at VND72.4 trillion (US$3.4 billion), equal to 89.8 per cent of last year's figure and accounting for 48.3 per cent of the set target, said Thai Dung Tien, Ha Noi Taxation Department deputy director.— VNS