Real estate businesses have the highest dissolution rate in the first 5 months of the year.

Công LuậnCông Luận30/05/2023


The report from the General Statistics Office also shows that in May 2023, there were 12,000 newly established enterprises nationwide, with 74,700 registered employees and a total registered capital of VND 103,700 billion. The above indicators decreased by 9.5% in the number of enterprises, 17.5% in registered capital and 16.6% in the number of employees compared to the same period last year.

Also in May, nearly 6,000 enterprises nationwide returned to operation, down 38.1% compared to April 2023 and up 14.3% over the same period last year. There were 5,364 thousand enterprises temporarily suspending business, down 25.1% compared to April 2023 and up 8.1% over the same period last year.

There were 4,717 thousand enterprises ceasing operations pending dissolution procedures, down 19.2% compared to April 2023 and up 12.7% compared to the same period last year. Along with that, there were 1,223 enterprises completing dissolution procedures, down 19% compared to April 2023 and down 8.7% compared to the same period last year.

In the first 5 months of 2023, nearly 62,000 newly registered enterprises with more than 568 trillion VND of registered capital, down 1.6% and 25.3% respectively over the same period last year. The average registered capital of a newly established enterprise reached 9.2 billion VND. If including 824.9 trillion VND of additional registered capital of 21.1 thousand enterprises increasing capital, the total registered capital added to the economy is more than 1,393 trillion VND.

Real estate businesses continue to account for the highest percentage of liquidation in the first 5 months of the year. Image 1

Statistics on newly established and dissolved enterprises in the first 5 months of 2023 by some fields of operation.

The total number of employees of newly registered companies in the first 5 months of the year was more than 405 thousand, down 7.2% compared to the same period last year. In addition, 33 thousand enterprises returned to operation, down 7.4% compared to the same period last year, bringing the total number of newly established enterprises and enterprises returning to operation to nearly 95 thousand enterprises. On average, there are 19 thousand newly established and returning enterprises per month.

By economic sector, there were 623 newly established enterprises in the agriculture, forestry and fishery sector. There were 46,500 enterprises in the service sector and only 14,800 enterprises in the industry and construction sector were newly established.

In addition, 55,200 enterprises temporarily suspended business, up 20.3%; 25,500 enterprises suspended operations pending dissolution procedures, up 34.1% and 7,300 enterprises completed dissolution procedures, up 6.5% over the same period last year.

In the real estate sector alone, the number of real estate enterprises established was 1,744 thousand, down 61.4%, the number of dissolved enterprises was 554, up 30.4% over the same period last year. The real estate sector also lost its second position in the ranking of sectors attracting foreign capital since last April.

Real estate businesses continue to account for the highest percentage of liquidation in the first 5 months of the year, picture 2

The real estate industry recorded a decline in many aspects.

Specifically, as of May 20, the total registered foreign investment capital in Vietnam, including newly registered capital, adjusted registered capital and capital contribution and share purchase value of foreign investors, reached nearly 10.86 billion USD, down 7.3% over the same period last year. Of which, the real estate business ranked third with a total registered capital of nearly 1.16 billion USD, accounting for nearly 11% of the total registered investment capital, down 61% over the same period last year (nearly 3 billion USD).

Previously, according to statistics from the Vietnam Real Estate Brokers Association, 30% - 50% of trading floors had to close or temporarily suspend operations in the first 3 months of the year. The reason given was due to competition between brokerage units during the period when the market supply with products that meet the needs of real buyers decreased. Meanwhile, market liquidity remained frozen, causing sales to not improve.



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