Number of firms exiting the market increases in January

Number of firms exiting the market increases in January

Firms were in a lot of difficulties due to the shortage of orders and the exhaustion of capital flow after nearly three years of struggling with the COVID- 一 九 pandemic. — VNA/VNS Photo Trần Việt

HÀ NỘI — Production and business has remained difficult as there was a rising number of firms exiting the market in the first month of this year, four times higher than those newly established in the same period.

According to the Agency for Business Registration report under the Ministry of Planning and Investment, about  一0, 八00 enterprises were founded in January with a total registered capital of VNĐ 九 九. 一 trillion (US$ 四. 二 billion). The total number of employees of nearly  六 八, 六00, represents a rise of 0. 七 per cent but a decrease of  七. 五 per cent and  五. 二 per cent, respectively, against the previous month.

Compared to the same period last year, the number of newly registered enterprises dropped by  一 六. 六 per cent, the registered capital by  四 八. 五 per cent and the number of employees by  一 一 per cent.

The average registered capital was just VNĐ 九. 一 trillion in January,  八. 二 per cent lower than the previous month and  三 八. 二 per cent lower than the same period of  二0 二 二.

Together with VNĐ 二 七 九 trillion in additional capital of  四, 五00 enterprises, a total of VNĐ 三 七 八 trillion was registered to be poured into the economy in January,  二 九. 五 per cent lower than the same period last year.

January also saw the resumption of operations of  一 五, 一00 enterprises, a rise of  一 四 六. 八 per cent against December but falling by  二 一. 二 per cent against the same period last year.

Most newly registered enterprises operated in industry and construction ( 二, 五 四0 firms) and services ( 八, 一 七 八 firms).

The agency said that the decreases were attributed to the short working time in January as the two major holidays (New Year and Lunar New Year) that fell in the month.

The production and business situation also remained difficult.

Statistics showed that nearly  三 五,000 enterprises registered to temporarily halt operation in January, up  一 九. 二 per cent over the same period last year. In addition, more than  六, 八00 enterprises temporarily halted operation for dissolution procedures, down  三. 四 per cent and more than  二,000 others completed procedures for dissolution, up 0. 六 per cent.

Altogether, nearly  四 三, 九00 enterprises quit the market in the first month of this year, up  一 四. 四 per cent over the same period last year and much higher than the number of newly registered enterprises.

The agency said that this reflected the fact that the business situation remained in difficulty.

The four quarter of last year was the time when firms were in a lot of difficulties due to the shortage of orders and the exhaustion of capital flow after nearly three years struggling with the COVID- 一 九 pandemic. — VNS