Ho Chi Minh City: Economic recovery, yet the number of businesses exiting the market remains high

DNHN - In the first eight months of the year, the number of businesses entering the market increased by 8.8%, but the number of businesses withdrawing also rose by 7.4%.

On September 4th, the People's Committee of Ho Chi Minh City held a meeting to discuss the socio-economic situation in August and throughout the first eight months of 2024. At the meeting, representatives from the City Statistics Office stated that although the economy is gradually recovering, the number of businesses leaving the market remains quite high.

Specifically, the industrial production index for the first eight months of 2024 increased by 6.4% compared to the same period; total State budget revenue in the city increased by 15.3% year-on-year, with revenue from economic sectors contributing to a 23.8% increase in domestic revenue, and particularly, revenue from imports and exports rose by 0.3%.

According to statistics, in the first eight months of 2024, the number of newly established businesses in the city increased by 6.5% compared to the same period last year. However, the registered capital of these businesses decreased by 10.2%, leading to a 15.7% drop in the average capital size per business.

Meanwhile, the number of businesses entering the market increased by 8.8%, but the number of businesses withdrawing also rose by 7.4%. This means that for every 100 businesses newly entering the market, 58 businesses exited.

Regarding the type of business, 91.6% of the newly established businesses were limited liability companies (LLCs), 7.6% were joint-stock companies, and 0.8% were private enterprises and partnerships.

By economic sector, 82.4% of the new businesses were in the service sector, 17.3% in the industrial-construction sector, and only 0.3% in the agriculture, forestry, and fisheries sector.

Ms. Lê Thị Huỳnh Mai, Director of the Department of Planning and Investment, shared that the city has achieved positive results in the economic field. In August, industrial production activity continued to recover, with the industrial production index increasing by 8.5%, the consumption index in the processing and manufacturing sector increasing by 10.7%, and the inventory index decreasing by 14.0%. Overall, in the first eight months of 2024, the industrial production index increased by 6.4% compared to the same period last year. However, Ms. Mai also expressed concern about the still-high number of businesses exiting the market.

P.V