Vietnam Business Channel

Businesses closing increase 16% in the 1st quarter of this year

According to Vietnam’s General Statistics Office, 40,300 companies in the country closed in the first quarter of this year, a 16% year-on-year increase..

The GSO says that 23,800 of these companies were closed on a temporary basis – an increase of 28.2%, an additional 5,000 companies have permanently closed – a 26.4% increase, and 11,300 companies are currently in the process of completing dissolution procedures.

The majority of the companies that are ceasing their operation are small, newly established companies that have proven vulnerable to the impacts of the Covid-19 pandemic.

On the positive side, the GSO also said that 29,300 enterprises were established during the first quarter – although this is down 1.4% from a year earlier, and 14,700 other companies reported that they had resumed their operations after temporarily closing.

The GSO also reported that a survey of companies involved in manufacturing found that 68.6% of them saying their business situation is better than in the 4th quarter of 2020, and 85% of companies believe the business situation will improve in the 2nd quarter of this year.

 

 

 

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