Vietnam sees record number of market withdrawals this year

Shops in downtown HCMC shut down. Due to the coronavirus pandemic, the number of enterprises withdrawing from the local market this year is estimated to hit an all-time high of over 100,000 – PHOTO: HUNG LE

Due to the coronavirus pandemic, the number of enterprises withdrawing from the local market this year is estimated to hit an all-time high of over 100,000.

In December, some 8,200 enterprises pulled out of the market, while an average 8,550 companies left the market between January and October, contributing to setting a record number of market withdrawals.

Data from the General Statistics Office of Vietnam indicated that in 2020, as many as 101,700 companies halted their operations, were pending dissolution and completed procedures for disbandment, up 13.9% against last year.

Some 46,600 businesses, mainly active in the retail, construction, lodging and catering service, tourism, real estate and education sectors, suspended their operations due to the hardships caused by Covid-19.

A representative of a firm in HCMC’s District 10, which sold paintings to international tourists, said that his company had registered to halt its operations for one year to cut losses and relevant costs. He plans to return to business in May next year, expecting the country to reopen its doors to international visitors.

Facing the same difficulties, many other firms active in various sectors have temporarily left the local market.

Among the 37,700 firms pending dissolution this year, over 30,000 were small-scale enterprises, which are vulnerable to the huge impact of the coronavirus pandemic.

Meanwhile, Vietnam has seen a slight drop in the establishment of new enterprises this year. Some 134,900 firms were newly set up, with a total registered capital of over VND2,235 trillion, down 2.3% in volume and up 29.2% in value, against last year.

Besides, some 44,100 firms resumed operations in 2020, up 11.9% from the figure seen last year.