Local businesses withdrawing from market sees surge of 18.6% in two months
The initial two months of the year witnessed as many as 33,611 domestic businesses withdraw from the market, a rise of 18.6% in comparison to the same period from last year, according to statistics released by the Ministry of Planning and Investment.
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Heavily affected by the COVID-19 pandemic, many local enterprises have been left unable to continue securing a firm foothold in their respective markets.
The figure includes 21,636 enterprises which halted business operations for a definite period, a further 8,380 firms which suspended operations with pending dissolution, and an additional 3,595 enterprises which have completed dissolution procedures.
The number of companies in the process of finalizing dissolution procedures stands at more than 3,590, an increase of 28.1% compared to the same period from 2020. Indeed, 16 out of 17 main business sectors saw a rise in the number of dissolved enterprises.
The industries with a high rate of dissolved enterprises compared to last year include production, distribution of electricity, water, gas; transportation and warehousing services; and mining, with dissolution rates of 220%, 53.2%, and 50%, respectively.
Furthermore, the Ministry of Planning and Investment outlined that over 18,120 enterprises were newly set up during the two-month period, representing an annual decline of 4%, while the number of enterprises returning to operation stood at 11.033, a drop of 7.6% over the same period from last year.
The number of firms returning to operation in the reviewed period decreased in 12 out of 17 areas which have been greatly impacted by the novel coronavirus (COVID-19) pandemic. This includes arts, recreational activities, education and training, accommodation and catering services, mining, construction, transportation, and warehousing services.
