As many as 33,225 companies in Vietnam stopped operating in the first five months of this year, or 220 per day, according to a report of the General Statistics Office
Between January and May, 28,582 firms suspended operations, rising 25.9% from a year earlier, while the number of business cessations increased 19.5% to 4,643, data showed.
The number of business formations increased 24.1% year-on-year to 44,740 in the five-month period, with a combined registered capital of 349.5 trillion dong ($15.6 billion), up 59.3% from a year earlier. In addition, existing firms raised their capital base by $29.3 billion.
As many as 1,076 businesses were established in the real estate sector in the first five months, rising 121.4% compared to the same period of last year, marking the sharpest growth rate, according to data of the Business Registration Management Agency under the Ministry of Planning and Investment.
The healthcare sector followed with 198 new companies, up 81.7%, and education and training with 993 firms, up 44.3%.
In May alone, over 10,000 enterprises were set up, down 8.5% from April, while 3,569 firms ceased operations temporarily or permanently.
In a bid to boost the local economy, the Vietnamese government has adopted Resolution 35, which outlines measures aimed to better the business environment, reduce unofficial fees and corporate inspections.