Business closures rise due to Covid-19

31-Mar-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

Vietnam has seen 18,600 businesses suspend operations in the first quarter of 2020, up 26 percent year-on-year, due to the coronavirus outbreak.

According to the General Statistical Office, many businesses nationwide have taken a hit from the pandemic.

There are 12,200 enterprises awaiting dissolution, down 20.6 percent year-on-year, while 4,100 others have completed the procedures for disbandment, equivalent to the number in the same period last year.

Businesses in the processing and manufacturing industry expected that the pandemic will soon end and economic growth will rebound in the second half of 2020.

Nearly 21 percent of them said their business performance in the first quarter of this year has been better than the same period last year, while over 37 percent said their business performance has stayed the same, and 42 percent said they have faced many difficulties.

The General Statistical Office report showed that there have been 29,700 newly-established firms, with registered capital totalling VND351.4 trillion in the first quarter, up 4.4 percent in terms of quantity and down 6.4 percent in terms of capital, year-on-year.

Further, active businesses have registered to increase their charter capital by an additional VND552.4 trillion.

Some 14,800 enterprises have resumed operation, down 1.6 percent year-on-year.

Nguyen Dinh Thuy, head of the Industrial Statistics Department, said the government should take prompt measures to support businesses, especially small and medium-sized enterprises and household businesses heavily affected by the coronavirus.

Incentives, such as tax exemptions or extensions, import and export tax reductions, employment subsidies and unemployment insurance should be prioritised for key sectors, including tourism, transport and agriculture.


Category: Business, Vietnam

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