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Nearly 120,000 firms leave market in 2021 due to COVID-19 pandemic

HÀ NỘI — As many as  一 一 九, 八00 firms left the market in  二0 二 一, up  一 七. 八 per cent year-on-year due to the negative impact of COVID- 一 九, with strict blockades and prolonged social distancing especially in the third quarter, according to the General Statistics Office (GSO). 

Among those leaving the market, nearly  五 五,000 firms temporarily suspended operations for a definite period, a year-on-year increase of  一 八 per cent, while  四 八, 一00 enterprises stopped operation pending dissolution procedures, up  二 七. 八 per cent.

Another  一 六, 七00 completed dissolution procedures, down  四. 一 per cent, including  一 四, 八00 with capital scale of less than VNĐ 一0 billion (US$ 四 三0,000), down  四 per cent and  二 一 一 with capital scale of over VNĐ 一00 billion ($ 四. 三 million), down  二0. 七 per cent. 

On average, nearly  一0,000 businesses withdrew from the market a month as they failed to survive the COVID- 一 九 storm.

In  二0 二 一, the country also saw a yearly decline of  一 三. 四 per cent in the number of newly-established businesses at  一 一 六, 八00 and their total registered capital also dropped  二 八 per cent year-on-year to over VNĐ 一. 六 一 quadrillion.

The average registered capital of a newly established enterprise was estimated at VNĐ 一 三. 八 billion, down  一 六. 八 per cent compared to the previous year.

On a brighter note, the timely implementation of Resolution No  一 二 八/NQ-CP which promoted provisional regulations on safe, flexible adaptation to and effective control of COVID- 一 九, made a great contribution to resuming domestic production, gradually creating confidence for manufacturers.

Thus,  三 一, 四00 new firms were formed in Q 四 with total registered capital of VNĐ 四 一 五. 三 trillion, marking respective increases of  七0. 四 per cent in the number of businesses and  六 四. 一 per cent in levels of capital compared to Q 三. 

Meanwhile,  四 三, 一00 firms resumed their operation this year, down  二. 二 per cent from the previous year.

The GSO’s survey on business trends of the manufacturing and processing industry in Q 四 showed that  四 四 per cent of businesses said that the business situation would be better than Q 三, while  三 四. 一 per cent said the business situation would be stable.

About  二 四. 九 per cent of enterprises forecast more difficulties in doing business than the previous quarter.

About  四 五. 六 per cent of enterprises were optimistic about the business situation in first quarter of  二0 二 二, forecasting better business performance than Q 四/ 二0 二 一 while  三 六. 一 per cent of them foresaw a stable business situation.

About  一 八. 三 per cent of businesses forecast more difficulties in doing business than in  Q 四 of  二0 二 一. 

Việt Nam has set a target of about  七 一0,000 newly-established enterprises in the  二0 二 一- 二 五 period, following a draft resolution on supporting and developing businesses jointly built by the Ministry of Planning and Investment (MPI), relevant ministries, sectors, agencies and localities.

Under the document, various support policies will be designed to assist businesses in recovering, expanding and improving their competitiveness. In  二0 二 五, Việt Nam expects to have over  二. 一 million companies.

In the period, about  一0 start-ups are hoped to reach a value of over UD$ 一 billion, while about  三 五- 四0 per cent of total firms are expected to launch science-technology application and innovation activities, and  一00 per cent of companies are hoping to access digital transformation, with  一00,000 firms getting support in the field.

To this end, the MPI will give eight groups of solutions, focusing on improving the investment and business environment, expanding domestic and foreign markets, strengthening the credit access for businesses, especially those hit by COVID- 一 九.

The ministry also proposed support in human resources development and the fostering of connectivity among enterprises so that they can join domestic and international value chains and gradually lead the chains in the next five years. — VNS