Vietnam lost almost 68,000 business in 2014, according to the General Statistics Office (GSO), but officials are unconcerned, saying it’s just a part of the country’s developing market economy.
Nguyen Bich Lam, GSO’s general director (centre) at the recent press conference
Nguyen Bich Lam, GSO’s general director, said that in 2014 nearly 75,000 new enterprises were established in the country with a combined registered capital of VND432.2tr (USD20.19m), down 2.7 percent in year-on-year in terms of numbers of businesses, but up 8.5 percent in terms of registered capital.
The new companies are expected to generate nearly 1.1 million jobs, up 2.8 percent from a year earlier.
The GSO reported 15,419 companies resumed operations during the year, up 7.1 percent from the previous year. But 67,823 had to close, disolve or suspend operations during the year.
“It’s not necessary to worry about the number of bankrupted enterprises in Vietnam, which is still lower compared with many other countries around the world,” Lam said, adding that the bankruptcy rate in the UK is as high as 70 and in the US 50 percent.
Vietnam has about 500,000 businesses operating, against a total of 830,000 registered companies, which indicates a bankruptcy rate of slightly more than 30 percent.
“Corporate closure or disolution is an obvious elemination process in the market economy,” Lam said. “Incompetent enterprises are removed and replaced by new and more competant ones. To some extent, the process helps foster the economic restructuring, cleansing the business environment and laying the foundation for sustainable development.”
Đăng ký: VietNam News