85,500 businesses across Vietnam knocked out by COVID-19

The COIVD-19 pandemic has forced more businesses to close down than open. Photo: Le Toan

The fourth wave of the pandemic and social distancing extension have wreaked havoc on manufacturing and business activities, especially in the southern region. Around 24,000 businesses have closed shops during the first eight months of the year in the virus-hit Ho Chi Minh City, accounting for 28.1 per cent of total closures in the city. The number was 6.6 per cent higher than the corresponding period last year.

Among the 85,500 businesses, a total of 43,200 have registered for a temporary suspension of operations, a rise of 25.9 per cent on-year.

Roughly 30,100 businesses have halted activities and have dissolution procedures pending, up 24.5 per cent on-year, while 12,200 businesses have completed dissolution procedures, a 17.8 per cent increase.

About 10,700 local enterprises leave the market each month. In August alone, 6,441 businesses have exited the market.

In contrast, there were 5,761 newly-established businesses in August, with the registered capital totaling over VND68 trillion ($2.96 billion), a decline of 34.1 per cent in quantity and 44.6 per cent in registered capital against July.

Meanwhile, around 3,865 businesses have resumed operation last month, a decline of 21.9 per cent from July and 19.1 per cent on-year.

In the first eight months of 2021, 81,600 businesses were established with the total registered capital of VND1.33 quadrillion ($57.83 billion), down 8 per cent in quanity and 7.5 per cent in capital.

The number of withdrawals has suppassed that of newly-established businesses during the period. The only positive news is that 32,400 businsess have resumed operation, bringing the total number of newly-established and revived businesses to 114,000.

On average, approximately 14,300 businesses are established or resume operations each month.

The total amount of additional registered capital poured into the economy reached nearly VND2.67 quadrillion ($116.1 billion), down 17 per cent compared to the same period in 2020.