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|COVID-19 has forced dozens of thousands of companies out of business across the country|
According to the Business Registration Management Agency under the Ministry of Planning and Investment, over the first seven months of this year, about 63,461 companies withdrew from the market, up 10.9 per cent on-year. Thus, each month about 9,000 companies were closed.
Of these, real estate, tourist accommodation establishments, cuisine, and entertainment are the sectors suffering the heaviest damage with the highest rate of temporary operation cancellation.
According to the authority, the local economic recovery has been at a snail's pace while the pandemic's implications are growing serious across the globe.
To illustrate this, about 32,722 businesses registered to briefly halt operations in the first seven months of the year, up 41.5 per cent on-year. Most of them operated for less than five years with capital scale of less than VND10 billion ($434,780).
Otherwise, during the first seven months 75,249 companies were founded, down 5.1 per cent on-year, with agriculture-forestry-seafood and water manufacturing and distribution being the two segments seeing the most new businesses, with the on-year growths of 20.9 and 190.7 per cent, respectively.
The authority also stated that the pandemic has affected business strategies, with businesses shifting to the sectors with fewer risks such as electricity, water supply, and gas, among others – essential utilities that are less affected by the health crisis.
The authority added that companies have tended to reduce their scope of operations.