44,500 businesses dissolved or cease operations in first 8 months

29-Aug-2014 Intellasia | DVO/GSO | 6:00 AM Print This Post

The general Statistical Office (GSO) has published reports on the socio-economic situation for the first eight months of the year.

Accordingly, in August, the number of newly established businesses nation-wide was 5,052 with the registered capital of 27.3 trillion dong, down 0.6 percent in number and 13.2 percent in the registered capital from the previous month. The average registered capital was 5.4 billion dong, down 13 percent from the previous month. The number of employment expected to be generated by newly established businesses in August was 79,400, down 9.8 percent from the previous month.

The number of troubled businesses that is forced to be dissolved or temporarily ceased operation or ceased operation business code closure or non-registered ones nation-wide in August is 6,681, up 35.5 percent from the previous month including 755 dissolved businesses; 1,050 businesses that temporarily ceased operation; 4,876 businesses that ceased operation for business code closure or non-registered ones.

Although the number of businesses and the newly registered capital reduced from the previous month, the overall picture of the business situation in August shows a positive sign when the number of firms that go back to operation in the country is 1,496, up 35.2 percent from July.

Generally, in the first eight months, there were 47,500 newly registered enterprises nation-wide with a total registered capital of 289.8 trillion dong, down 9.5 percent in the number of businesses and increased 14.2 percent in the registered capital from the same period last year. The average registered capital was 6.1 billion dong, up 26.2 percent year-on-year. The number of of employment expected to be generated fromthe newly established enterprises is 708.500, up one percent year-on-year.

In Jan-Aug, the number of troubled businesses that is forced to dissolve or temporarily ceased operation, ceased operation for business code closure or non-registered ones in the country is 44,500, up 12.9 percent from the same period last year, including 6,400 dissolved businesses, 7,600 businesses that had to temporarily cease operation; 30,500 enterprises that had to cease operation for business code closure or non-registered ones.

The total registered capital of troubled businesses was 339.2 trillion dong, including 49.3 trillion dong registered capital from businesses that completed the dissolution procedures; 289.9 trillion dong registered capital from businesses that temporarily ceased operation for business code closure or ceased operation without registration.

At the same time, in the first eight months, the total number of additional registered capital was 658.5 trillion dong, including 289.8 trillion dong from newly established businesses, 368.7 trillion dong additional registered capital from businesses. In addition, the country had 10,900 businesses that went back to operation, up 2.6 percent year-on-year.

In terms of industry, in the first eight months, some industries had positive signals, reflecting in the increase in the number of newly established businesses and the decrease in the number of businesses in difficulties. The production and distribution of power, water, and gas rose 12.4 percent in terms of newly established businesses and dropped 27.9 percent in terms of the number of troubled businesses that had to dissolve or temporarily cease operations; other service activities hiked 3.6 percent and fell 15.9 percent respectively.

Some sectors show the strong restructuring through the number of businesses that dissolved or withdrawn from the market. Specifically, the entertainment and creation sector increased 46.5 percent in the number of newly established businesses and 26.2 percent in the number of businesses that temporarily ceased operation; the agriculture, forestry and fishery sector soared 23.9 percent and 6.3 percent respectively; the real estate sector picked up 21.5 percent and 11.2 percent respectively; the health care and social support activities surged 18.8 percent and 30.9 percent respectively; the information and communication swelled 7.9 percent and 30.9 percent respectively.

Some industries still faced difficulties in the production and business such as the wholesale, retail, car and automobile repair saw a 19.4 percent decrease in the number of newly established businesses and 15.8 percent increase in the number of businesses that ceased operation; the employment service; tourism; lease of machinery, equipment and other support services decreased 13.7 percent and increased 5.4 percent; the construction fell 12.1 percent and increased 12.9 percent.

 


Category: Economy

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