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Ho Chi Minh City
Thursday, March 4, 2021

Tens of thousands of enterprises shut down due to Covid-19

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HCMC – Since the Covid-19 pandemic broke out early this year, lots of businesses in Vietnam have been dissolved or have suspended operations, while many people have been left without jobs.

Data of the Business Registration Management Department under the Ministry of Planning and Investment showed that some 63,500 companies withdrew from the market between January and July, increasing by 10.9% compared with the same period last year. This means some 9,000 businesses suspended operations monthly between January and July.

Meanwhile, some 75,000 enterprises were established in the country from January to July, the lowest number over the past five years.

According to the Department of Employment under the Ministry of Labor, Invalids and Social Affairs, 30.8 million people aged 15 or older were severely affected by the pandemic in the first half of this year.

Of them, 17.6 million people saw their incomes decline, while 7.8 million people lost their jobs or were temporarily suspended from work. The hardest hit sectors included manufacturing and processing as well as retail, transport, logistics, hospitality and catering services.

In HCMC, over 23,150 enterprises were established but nearly 21,230 others shut down as of July 31, according to the city’s Tax Department.

Le Minh Tan, director of the HCMC Department of Labor, Invalids and Social Affairs, forecast that some 120,000 additional people from roughly 4,000 enterprises in the city are likely to be laid off until September.

Some 54,000 workers from nearly 2,000 enterprises in the city lost their jobs in June and July, while the figure was 327,000 from March to May.

Pham Van Tai, vice chairman of the Labor Union of Go Vap District, said Hue Phong Company in the district has planned to suspend some 1,600 employees from work on August 30. It had earlier fired some 2,500 workers.

Many other businesses in the tourism, hospitality, transport, construction, clothing and footwear sectors are also struggling with the same situation.

Speaking at a meeting on August 17, HCMC Chairman Nguyen Thanh Phong said the city is facing many challenges to meet its economic targets.

The city’s leader assigned the Department of Planning and Investment and the Department of Labor, Invalids and Social Affairs to propose another rescue package for businesses affected by Covid-19 in the city in addition to the Government’s VND62-trillion relief package.

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