88,000 firms close between Jan-May
  • |, TP | May 29, 2023 10:07 PM
Around 88,000 businesses in Vietnam stopped operations in the first five months of this year, up 22.6 percent on-year.

In May, 12,000 new enterprises in Vietnam were established, down 24.2 percent against April and 9.5 percent on-year. 5,952 resumed their operation during the same month.

Between January and May 95,000 businesses opened or resumed operations, while 88,000 businesses stopped operations, up 22.6 percent on-year.

The registered capital of newly licensed companies in the first five months of this year fell by 25.3 percent on-year. This was the lowest level during a January-May period since 2019. The real estate sector saw the sharpest fall in newly established firms.

The National Private Economic Development Research Board surveyed 9,556 enterprises which showed 71.2 percent planned to downsize, with the companies in HCM City hardest hit, followed by Binh Duong. Just 13.5 percent of firms said that they would maintain their current size.

As many as 10.9 percent planned to close, while an additional 12.4 percent intended to suspend their operations.

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