Vietnam Businesses Halting Operation Outnumber Startups in Jan

Tuan Minh

17:27 28/01/2016

BizLIVE - Nearly 13,800 companies in Vietnam ceased operation or closed down in January, outnumbering startups.

Vietnam Businesses Halting Operation Outnumber Startups in Jan

8,320 businesses were granted licenses for establishment in January 2016. (Photo: Internet)

As many as 13,794 businesses in Vietnam suspended operation and shut down in January 2016, up 28% from a year earlier, as firms usually close down at the start of a fiscal year [January 1], the General Statistics Office has said in a report.
Of the amount, up to 12,456 companies halted operation in the month, rising 27.5% from a year earlier, while 1,338 firms permanently left the market.
Meanwhile, as many as 8,320 businesses were granted licenses for establishment in the month, representing a 21.2% year-on-year rise. Their registered capital soared 87% to 59.3 trillion dong ($2.65 billion).
In addition, 4,872 firms resumed operation, up 69.6% year-on-year. This is also the largest number over the past few years on a monthly basis.

GSO Director Nguyen Bich Lam told press that local businesses would face more challenges than opportunities this year as competition is expected to become fiercer due to the enactment of free trade agreements and low labor productivity in Vietnam.

 

TUAN MINH

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