Additional 4,100 enterprises shut down operations in May

08-Jun-2012 Intellasia | VnEconomy | 1:36 PM

Answering the press on the sidelines of National Assembly meeting (on June 7), minister of planning and investment, Bui Quang Vinh, said that in the first four months of this year, more than 17,700 enterprises had to shut down operations and go bankrupt, rising 9.5 percent from the same period last year.

In addition, till May 31, the figure increased to 21,800 firms, rising additional 4,100 firms in May.

Credit in 2010 grew over 33 percent and it was 14 percent in 2011. In the first months of 2012, credit fell 0.83%, indicating the difficulties of enterprises when a huge amount of capital was not offered to the market.

However, the minister said that the dissolution and bankruptcy should be seen in two aspects. Amongst these companies, there were many newly established firms. Newly-formed firms have high dissolution ratio in many other countries, not only in Vietnam. In other countries, since registering till starting operations, the survival ratio is 70 percent and this ratio in Vietnam is about 70-80%.

Vinh said that the government should support the enterprise with really good business performance and long-term orientation.