High number of firms established in the first quarter

05-May-2012 Intellasia | VIR | 7:05 AM Print This Post

Over 18,700 enterprises have registered in the first quarter of this year, compared with 16,500 from the same period last year, according to a report issued by the Vietnam Chamber of Commerce and Industry.

However, many firms still face difficulties as a result of the economic downturn. Nearly 10 per cent of enterprises have suspended production and gone into liquidation in the first quarter of this year.

Of that number, nearly 4.5 per cent failed after attempting new business ventures and 4.7 per cent were integrated into other enterprises.

According to the VCCI, the high liquidation rate in Vietnam is ordinary and understandable since 25 to 30 per cent of companies and enterprises in developed countries also encounter problems within the first three years of existence.

Many measures have been proposed to solve the problems and help enterprises, including reducing taxes and interest rates.


Category: Business

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