Businesses continue to shut down and suspend operations with few new ones to replace them, according to the latest government statistics.
The Business Registration Department at the Ministry of Investment and Planning listed 48,330 businesses as dissolving or suspending operations in the first nine months of this year, up 13.8 percent year on year, according to news website Thoi Bao Kinh Te Saigon (Saigon Times).
Those businesses had a combined registered capital of VND408,146 billion (US$19.26 billion)--including VND55.4 trillion ($2.61 billion) from those which completed dissolution procedures or had been definitively eliminated from the economy.
The finance ministry gave a darker picture by announcing that more than 70,000 businesses had dissolved, gone bankrupt or ceased operating during the first nine months of the year.
Only around 53,000 new businesses opened during that period, the ministries said, noting that the figure was down 8.7 percent from the same period last year.
The situation has grown even more worrisome of late.
Figures from the investment ministry showed a 16.3 percent drop in the number of new businesses and 32.7 percent decline in the total value of capital registered between the second and third quarters.
New businesses in the second quarter dropped 13.5 percent and their registered capital 8.7 percent from the first quarter, when businesses and capital were down 15.2 percent and 23.8 percent, respectively, from the fourth quarter of last year.
A total of 11,872 businesses resumed operations this year, up 5.1 percent from the same period last year.