Business closures pass 26,000
Unable to cope with difficulties caused by the global economic crisis,
26,340 Vietnamese businesses have suspended operations or shut down in
the first six months of 2012, a year-on-year increase of 5.4 percent,
the General Statistics Office (GSO) says.
Unable to cope with difficulties caused by the global economic crisis,
26,340 Vietnamese businesses have suspended operations or shut down in
the first six months of 2012, a year-on-year increase of 5.4 percent,
the General Statistics Office (GSO) says.
According to figures released by the GSO in Hanoi on June 29, the number of enterprises dissolved, at 4,105, marked a year-on-year increase of 35.4 percent, showing businesses were finding it increasingly difficult to survive in the current environment.
In June alone, 4,110 firms declared bankruptcy or suspended operations. Of these 610 were dissolved.
Of the 11,329 foreign-invested enterprises, 232 firms (two percent of the total number of registered FIEs in the country) have temporarily suspended operations, 696 enterprises (6.3 percent) are about to be dissolved because of losses or changes in the investment environment.
About 23,000 State-owned enterprises (SOEs) have suspended operations while over 30,000 other SOEs could be dissolved.
Lam said SOEs, which are most "vulnerable" in the current state of economic turmoils, need more support from the Government.
According to the GSO, 27 percent of surveyed interviewed said high interest rates are the biggest challenge facing their business; 19.5 percent blamed high inflation and economic changes; 17.4 percent cited difficult access to capital; 9.7 percent, high transportation costs; 7 percent, unstabe electricity supply and another 7 percent, macroeconomic policices.
Meanwhile, the HCM City Department of Labour, War Invalids and Social Affairs has reported that over 4,800 HCM City-based businesses reduced their work force in the first four months of 2012.
According to the department’s recent survey, over 16,700 workers from the construction, chemicals, mechanics and service sectors have been sacked.
The survey also revealed that the workers were sacked because their employers faced bankrupcy, disintegration, suspension of operations and other difficulties due to the economic crisis.
In addition, many other businesses have had to reduce the work hours of their employees due to a shortage of orders for their production and processing lines.-VNA
According to figures released by the GSO in Hanoi on June 29, the number of enterprises dissolved, at 4,105, marked a year-on-year increase of 35.4 percent, showing businesses were finding it increasingly difficult to survive in the current environment.
In June alone, 4,110 firms declared bankruptcy or suspended operations. Of these 610 were dissolved.
Of the 11,329 foreign-invested enterprises, 232 firms (two percent of the total number of registered FIEs in the country) have temporarily suspended operations, 696 enterprises (6.3 percent) are about to be dissolved because of losses or changes in the investment environment.
About 23,000 State-owned enterprises (SOEs) have suspended operations while over 30,000 other SOEs could be dissolved.
Lam said SOEs, which are most "vulnerable" in the current state of economic turmoils, need more support from the Government.
According to the GSO, 27 percent of surveyed interviewed said high interest rates are the biggest challenge facing their business; 19.5 percent blamed high inflation and economic changes; 17.4 percent cited difficult access to capital; 9.7 percent, high transportation costs; 7 percent, unstabe electricity supply and another 7 percent, macroeconomic policices.
Meanwhile, the HCM City Department of Labour, War Invalids and Social Affairs has reported that over 4,800 HCM City-based businesses reduced their work force in the first four months of 2012.
According to the department’s recent survey, over 16,700 workers from the construction, chemicals, mechanics and service sectors have been sacked.
The survey also revealed that the workers were sacked because their employers faced bankrupcy, disintegration, suspension of operations and other difficulties due to the economic crisis.
In addition, many other businesses have had to reduce the work hours of their employees due to a shortage of orders for their production and processing lines.-VNA
You should also see
PM urges village elders, citizens to help preserve cultural heritage
Prime Minister Pham Minh Chinh has asked village elders and chiefs, skilled artisans and reputable citizens to make greater efforts to preserve and promote tangible and intangible cultural heritage, which is the quintessence and core value of the nation.
See more
Business
Hanoi to host Vietnam Medipharm Expo 2024
The 31st Vietnam International Medical and Pharmaceutical Exhibition (Vietnam Medipharm Expo 2024) is scheduled to take place in Hanoi from May 9 to 12, an official of the Ministry of Health (MoH) told a press conference on April 19.
Business
Japan's Takashimaya plans to expand investment in Vietnam
Takashimaya, a Japanese operator of upscale department stores, plans to open a shopping centre in Hanoi in 2026 that will be the company's first new location abroad in eight years, Japanese newspaper Nikkei reported.
Business
Noi Bai, Da Nang named in world’s top 100 airports
Hanoi capital’s Noi Bai International Airport and the Da Nang International Airport in the central city of the same name have been listed among the world’s top 100 airports in 2024 by the UK–based aviation consultancy Skytrax.
Business
Localities get ready for fourth FDI boom
As the year 2024 is expected to witness the start of the fourth wave of foreign direct investment (FDI) to Vietnam, localities nationwide are getting ready to absorb foreign capital flows.
Business
Vietnam earns 1.43 billion USD from rice exports in Q1
ietnam in the first quarter of 2024 exported 2.18 million tonnes of rice, earning 1.43 billion USD, an increase of 17.6% in volume and 45.5% in value year on year. Meanwhile, the average export rice price also increased by 23.6% to $653.9 per tonne.
