The number of newly-established enterprises last month was sharply down 22.8 percent from the previous month. (Photo: VNA) Thesefigures were sharply down by 22.8 percent and 25.3 percent in the number ofnewly registered enterprises and the registered capital respectively from theprevious month.
Thiswas considered a significant decrease since the outbreak of the COVID-19pandemic with complicated changes due to the rapid spread of the Delta variant.
Despitea sharp decrease in July, the number of newly established enterprises in thefirst seven months of the year still increased by 0.8 percent over the sameperiod last year with 75,800 enterprises. As a result, more than 1 quadrillionVND would be added to the economy in the near future.
Thecountry also had nearly 26,600 firms registering to increase their capitalby a total of 1.36 quadrillion VND.
Inaddition, 29,600 enterprises returned to operation, up 3.6 percent over thesame period last year, bringing the total number of newly establishedenterprises and those returning to operation in the seven month period to105,400. On average, nearly 15,100 businesses were newly established andreturned to operation every month.
However,the number of enterprises halting their business or waiting fordissolution also increased significantly by 25.5 percent compared to the sameperiod last year with 79,700 enterprises. Of which, nearly 40,300 firms haltedbusiness, representing a 23 percent year-on-year increase; 28,000 enterprisesstopped operating and were waiting for dissolution procedures, up 28.6 percent.Another 11,400 companies completed dissolution procedures, up 27.4 percent.Thus, on average, nearly 11,400 businesses withdrew from the market a month.
Accordingto GSO, the complicated situation of the COVID-19 pandemic and implementationof social distancing in 20 localities have affected the business registrationin the first seven months of the year.
Thenumber of newly established enterprises in the period decreased in some sectorssuch as electricity, gas, water production and distribution by 63.7 percent;accommodation and food services down 10.7 percent; employment services,tourism, rental of machinery and equipment, furniture and other supportservices decreased by 10.5 percent; and construction 3.7 percent.
PhanDuc Hieu, Deputy Director of the Central Institute for Economic Management(CIEM), said that the pandemic has had a strong impact on the goods supply anddemand chains, impacting business opportunities, causing the number ofenterprises entering the market to decrease sharply.
Inthe context of many difficulties and challenges due to COVID-19, the Governmenthas issued policies to support businesses as well as directed ministries andlocalities to provide them with favourable conditions.
Hieuexpected that with the Government's strong solutions in fighting COVID-19, thedisease would be controlled and repelled as quickly as possible. Production andbusiness activities would be vibrant and newly established enterprises wouldincrease again./.
VNA
