First quarter economy: Affected by COVID-19, nearly 35,000 businesses withdrew from the market, the number returned to operate at a “worrying” level.

” The outbreak of the Covid-19 epidemic in the world in general and Vietnam in particular in March this year has fully affected all aspects of the socio-economic life, in which, the business community is one of the most heavily affected objects , “said the Department of Business Registration Management – Ministry of Planning and Investment.

In March 2020, the total number of businesses withdrew from the market was 6,553, an increase of 55.5% compared to the same period in 2019.

For the whole first quarter, nearly 35,000 businesses withdrew from the market (up 2% compared to the same period in 2019). Inside:

+ 18,596 enterprises registered for temporary suspension of business (up 26.0%).

This is the highest increase in the number of business suspension registrations in the first quarter of the period 2015-2020, showing the direct influence of the Covid-19 epidemic on the suspension of business.

+ 12,178 enterprises awaiting dissolution (down 20.6%). The number of enterprises waiting for dissolution procedures in the first quarter of 2019 increased sharply because more than half of them (8,404 enterprises) had their business registration certificates revoked under the 2018 Data Normalization Program to eliminate leaving previously established businesses that are no longer in operation.

+ 4.115 enterprises completed dissolution procedures (down 0.02%).

On average, 11,630 businesses withdrew each month.

Business performance in Quarter 1/2020. Source: Ministry of Planning and Investment.

According to the Department of Business Registration Management, the situation of enterprises withdrawing from the market clearly shows the current trend of enterprises – psychology of waiting, waiting, “freezing” or putting enterprises in the state of “hibernation”. “to review the progress of the disease, then decide whether to continue the business or close the business, but not the entire business at this time.

This is reflected in the sharp increase in the number of enterprises temporarily suspending business in the short term and the decrease in the number of enterprises dissolved and waiting for dissolution.

Meanwhile, the number of newly established enterprises in Quarter I / 2020 tends to level off. The whole country had 29,711 newly established enterprises, an increase of 4.4% compared to the same period in 2019. This is one of the lowest increase in the number of newly established enterprises in the first quarter from 2015-2019 (compared to the average increase is 10.9%). This shows the increasing incidence of the Covid-19 pneumonia epidemic on the situation of domestic business registration.

The situation of registered capital in Quarter 1/2020. Source: Ministry of Planning and Investment.

The number of enterprises returning to operation in the first quarter of 2020 was 14,810, decreasing by 1.6% compared to the same period in 2019, while this rate of the first Quarter of 2019 compared to the first Quarter of 2018 increased to 78, first%.

” This is a concern because according to the annual record, the first quarter is usually the time when businesses plan their business for a new financial year, so the percentage of enterprises returning to operate in the same period of time. This time, the most will be. However, because the disease has not been controlled, businesses are still hesitant to listen to information to have the best plan, “the Department of Business Registration Management said.