As the number of newly-registered enterprises heads upwards so do the number of those facing closure.
According to a report from the Ministry of Planning and Investment (MPI) there were 9,450 businesses suspending operations in the first four months, up 40.5 per cent against the same period last year, and around 15,685 that are waiting to wind up operations, an increase of 27.4 per cent year-on-year. More than 92 per cent are small businesses, with registered capital of less than $450,000.
MPI said the many businesses are facing difficulties and that access to development policies, locations, and loans from credit institutions, especially for small and medium enterprises, still present obstacles.
There were 11,311 enterprises that suspended operations and are now operating again, a rise of 79.4 per cent year-on-year.
In the first four months there were also 34,721 newly-established enterprises with registered capital of approximately VND248.244 trillion ($11.08 billion), a year-on-year increase of 22.9 per cent in number and 52.8 per cent in capital. Average registered capital was more than VND7.1 billion ($300,000), a year-on-year increase of 24.2 per cent.