85,000 businesses leave market in eight months
The strong outbreak of the fourth wave of the Covid-19 pandemic along with prolonged social distancing in many provinces and cities in Vietnam has severely affected Vietnamese businesses.
According to statistics of the Ministry of Planning and Investment, the number of enterprises withdrawing from the market in the January-August period of 2021 was 85,500, an increase of 24, 2% over the same period in 2020. Of the number, 24,000 enterprises (28.1% of the total) were based in HCM City, an increase of 6.6%.
The number of businesses temporarily suspending business during this time was 43,200, accounting for 50.5% of the total number of enterprises withdrawing from the market. On average, nearly 10,700 businesses withdrew from the market every month.
The number of newly registered enterprises during this period decreased sharply in both quantity and registered capital.
In August 2021, the whole country had 5,761 newly established enterprises with a total registered capital of VND 68 trillion and registered employees of 43,400, a decrease of 34.1% in the number of enterprises, 44.6% in registered capital and 39.1% in number of employees compared to July 2021.
Compared with the same period last year, it was down by 57% in the number of enterprises, 76.5% in the registered capital and 54.9% in the number of registered employees.
In January-August 2021, Vietnam had 81,600 newly registered enterprises with total registered capital of nearly VND1,133.4 trillion and a total registered number of employees of 598,900; down 8% in the number of enterprises, 7.5% in the registered capital and 13.8% in the number of registered employees year on year.
The average registered capital of a newly established enterprise in this period reached VND 13.9 billion, up 0.5% over the same period of last year.
The number of newly established enterprises is still increasing, but the rate of businesses withdrawing from the market has also risen.