Operations put on hold at more than 200 Vietnamese firms every day

By Bach Duong May 29, 2016 | 08:01 pm PT

Photo by VnExpress/Hoang Ha

Over the first five months of 2016, about 33,000 Vietnamese enterprises suspended operations, equivalent to 220 per day, according to Vietnam's General Statistics Office.

30 companies vanished each day in first five months: GSO report

Data from the office showed that during the five-month period, 28,582 companies suspended operations, up 25.9 percent from the same period of last year. The number of companies that declared bankruptcy reached 4,643, up 19.5 percent on year.

Recently, Vietnam’s Chamber of Commerce and Industry said that about 941,000 new enterprises have been set up since 2007, but 45.5 percent have gone out of business.

Deputy Minister of Planning and Investment Dang Huy Dong said that there are many reasons behind these large numbers, including competitive pressure and many shifting to other sectors. He added that the market will remain stable if the number of new companies surpasses those that go bust.

From January to the end of May, 44,740 new enterprises were set up in Vietnam, up 24 percent on-year. New investment capital surged by 59.3 percent on-year to reach VND349.5 trillion ($15.6 billion).

The office added that about 13,000 firms resumed operations after a period of suspension, recording on-year growth of 75.6 percent.