A total of 36,195 new businesses with total registered capital of 232.5
billion VND were set up in the first half of the year, a year-on-year
decreases of 12.5 percent in number of businesses and 3.5 percent
reduction in capital, said the General Statistics Office (GSO).
Also in the reviewed period, 4,105 businesses declared dissolved and almost 22,220 others ceased operation.
The GSO said the results were attributable to lost profits, lack of
capital and difficulties in business and production locations, as well
as a lack of sales of final products.
As a result, many businesses had to change their industries or merge with others.
Businesses said they are facing difficulties in managing loans, high
transport costs and unstable power supply affecting production.
At present, up to 31.7 percent of businesses plan to narrow production
and business activities while 10 percent have to reduce capital
investment, 13 percent have to cut their labour force, 25.5 percent of
them are facing an overall reduction in turnover and 27.9 percent are
facing lower profits.
They said they hope that the
State, ministries and departments will assist them with loan interest
and accessing loans more easily. They said they need measures to assist
product sales at home and abroad, would benefit from improved
governance, higher quality human resources and more effective means of