Vietnam News

Nearly 26,000 enterprises shut down in January

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Some 25,750 enterprises closed down in January, according to the Department of Business Registration, which blamed it on the severe impact of Covid-19.

Around 18,000 are only temporarily closed but the rest are completing procedures for dissolution, it said in a report.

The majority were in the wholesale, retail, processing, manufacturing, and construction sectors, most of them small or newly established.

“These [The small enterprises] are the most susceptible to external shocks,” the report said.

To prevent closures, the government should implement policies that promote the development of small businesses and extend financial support to help them recover from the impacts of Covid-19, it said.

Also in January, more than 10,000 enterprises entered the market, with 13 sectors seeing a growth in the number of new companies, including mining, healthcare, electricity – water – gas distribution, all essential sectors and less vulnerable to the pandemic.

The average registered capital in January was VND15.4 billion ($669,565), up 3.3 percent year-on-year.

Besides, 6,500 suspended businesses resumed operations.

By Phuong Dong – VnExpress.net – February 6, 2021 

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