Between January and August of this year, about 44,500 companies in Vietnam declared bankruptcy or were dissolved, up almost 13% from the same period last year, according to the General Statistics Office.
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Between January and August of this year, about 44,500 companies in Vietnam declared bankruptcy or were dissolved
Of the total, there were 6,400 companies that went bankrupt and 7,600 that have temporarily halted operations. The rest have permanently closed their doors and have not renewed their tax codes.
The areas of arts and entertainment, agri-forestry and fisheries, real estate and IT have been hardest hit. But the wholesale, retail, tourism and construction sectors have also been adversely affected.
The department also reported that Vietnam licensed 5,052 companies in August, with a total registered capital of VND27.3 trillion (USD1.28 billion), down more than half a percent in numbers, but up 13% in capital from July.
Between January and August of this year, 47,500 companies were licensed, with a total registered capital of VND289.8 trillion (USD13.9 billion), down 9.5% in the numbers, but up 14.2% in the capital value against the same period last year.
The average capital of a company is estimated at VND6.1 billion (USD285,714), up 26% from the year before. Still, newly-licensed companies are estimated to have generated more than 700,000 jobs, up 1% on-year.
In the first eight months of the year, 10,900 companies resumed operations after a temporary halt, up 2.6% against from last year's figures.