Vietnam sees rise in bankruptcies

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Hanoi Times English - 26 month(s) ago 34 readings

The Hanoitimes - Cities and provinces across the country reported that over 2,200 enterprises had filed for bankruptcy from the start of the year until March 21, a report said.

The Hanoitimes - Cities and provinces across the country reported that over 2,200 enterprises had filed for bankruptcy from the start of the year until March 21, a report said.

The Ministry of Planning and Investment (MPI) announced the news at a recent meeting with the prime minister’s consultancy group, elaborating that over 9,700 firms had applied to halt operations or defer tax duties during the period.

According to the ministry, the number of enterprises that have fallen into bankruptcy or had to halt operations in the first quarter of this year had increased 6% compared to the same period last year. The number of bankrupted companies has soared by 57%.

At the ministry’s regular meeting for the first quarter on March 28, Lam Khoi Nguyen, Deputy Director of HCM City Department of Planning and Investment said as of March 19 the city recorded 931 enterprises filing for bankruptcy.

Bui Ha, Director of the ministry’s Department of General Affairs, explained that high interest rates had prevented enterprises from accessing bank loans to maintain their businesses, resulting in the gloomy situation.

In order to improve the situation, further interest rate cuts are a desperate need, he emphasised.

Do Thi Nhung, Director of the State Bank of Vietnam ’s Department of Monetary Policy, said interest rates may decline by 1% per quarter in line with a fall in inflation, a more stabilised macroeconomic situation and improved banking liquidity. If this occurs, deposit interest rates may fall to around 10%-11% per year and loans may be lowered to 15% per annum.

BTa

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