Over 3,100 enterprises in construction sector suspend operation in H1/2012

More than 3,100 enterprises in construction sectors had to suspend operation or suffer dissolution in the first six months of this year, according to the statistics from Ministry of Construction (MoC) at a meeting on July 6 in Hanoi.

Particularly, the total number of newly established firms in construction sector in Jan-Jun was 3.700, including 212 firms in real estate (down 54 percent on year).

The number of firms suffering closure and dissolution in construction sector was 3,123 (rising 16 percent over the same period last year) and it was 247 in real estate sector.

The total number of losers in business activities in H1/2012 was 8,900, higher than 8,600 in the same period last year, of the total 44,900 firms.

Although macro-economic situation has stabilised, the real estate market has been still suffering difficulties, resulting in gloomy operations of construction firms.

Enterprises are seriously lacking capital for production and development investment but are ineligible for access credit. The lending interest rates still remained high. Currently, up to 71 percent of companies are borrowing capital at the interest rate of above 17 percent per year.

 

 

Category: Business