The latest report by the HCM City Planning and Investment Department showed that 408 businesses with the total capital of 1,518,627 million dong, got dissolved. Meanwhile, Tran Dinh Cu, Deputy Director of the HCM City Taxation Department, said on Dau tu that in January 2012 alone, 1000 businesses declared the dissolution or temporary operation interruption.
Though there has been no official figure about February 2012, but Cu has predicted that the number of dissolved businesses in February is equal to that of January 2012.
As such, the number of dissolved businesses in reality is higher than the statistical figure released by the planning and investment department. Explaining the difference of the statistics from different sources, Nguyen Thi Huu Hoa, Deputy Director of the HCM City Planning and Investment Department, said that not all the dissolved businesses came to the department to follow necessary procedures for the bankruptcy declaration, and they only reported the dissolution to the taxation body.
“The figure provided by the taxation bodies is more reliable,” she said.
The report about dissolved businesses in Ba Ria-Vung Tau province also shows the increasing number of dissolved businesses. In the first two months of 2012, some 200 businesses got dissolved or interrupted operation.
A lot of businesses have got dissolved, while others, including the big ones, do not expand business and only try to keep the current status of the companies, waiting for a better future, according to Le Hoang Hai, Head of the Business Registration Division of the Ba Ria-Vung Tau provincial authorities. Especially, he said the situation would be even worse in the time to come, when businesses collapse after a long period of struggling to survive.
In the north, Deputy Director of the Hanoi Planning and Investment Department Nguyen Van Tu has reported the bankruptcy of 169 businesses, which is higher by 4.3 times than the previous year.
Meanwhile, the Vinh Phuc provincial Planning and Investment Department has also reported a surprisingly high number of dissolved businesses in 2011. Twenty percent of the total 4500 businesses in the province stopped operation in the year, according to Vinh Phuc provincial Planning and Investment Department Nguyen Kim Khai.
Other local investment departments have not released the statistics for the first two months of the year, but have affirmed that the current situation is not brighter than the previous year.
In 2011, local newspapers, citing management agencies, reported that 50,000 businesses got dissolved throughout the country.
The report showed that 304 businesses got dissolved in Da Nang in 2011, but 941 businesses have been found as leaving the head offices and not fulfilling the procedures for dissolution. The figure was much higher than that in previous years, according to Nguyen Duc Xa, Head of the Business Registration Division of the Da Nang City Planning and Investment Department.
The statistics show that most of the bankrupted businesses were small and medium enterprises. Some businesses had to stop operation just after a short period of operation. Especially, many of the dissolved businesses were small installation and construction companies because of the frozen real estate market.
The loss of a series of businesses has been anticipated. Dr Tran Dinh Thien, Director of the Vietnam Economics Institute warned at a workshop in late 2011 that a lot of businesses would “die young” in the first six months of 2012.
“Businesses would only feel better after the first quarter,” Thien said.
The high number of dissolved businesses has led to the high number of laborers registered their unemployment. Nguoi dua tin has reported that 2522 workers had come to the job centers in Hanoi to register their unemployment by February 21.
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