Bankruptcies and suspensions overtake set-ups in first two months

March 05, 2014 | 14:42

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The first two months of this year saw more enterprises go bankrupt than new businesses set up, a strong indication that the economy is not yet in recovery.

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Data from the Business Registration Department under the Ministry of Planning and Investment showed that in the first two months of this year there were 10,900 newly established enterprises in the country with registered capital of more than VND62.9 trillion.

That is an increase of 13.1 per cent in terms of the number of businesses and 28.4 per cent in terms of the registered capital against 2013.

However the data also showed that some 13,100 enterprises declared bankruptcy or suspended operations in the first two months, up 12.2per cent on-year against the 8,600 reported during the same period in 2013.

Specifically, 1,900 enterprises were dissolved entirely and 11,200 shut down their operations.

Regarding to restructuring process of state owned enterprise (SOEs), there are 432 enterprises which must be equitised within two years of 2014-2015.

By By Nguyen Trang

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