Minister of Planning and Investment Nguyen Chi Dung has just signed a report explaining the opinions of National Assembly deputies discussing in groups on the report on the results of implementing the socio-economic development plan for 2024 and the expected socio-economic development plan for 2025 at the 8th session of the 15th National Assembly.

163,800 businesses withdrew, up 21.5% over the same period

Previously, delegates proposed to analyze and clarify the situation of businesses withdrawing from the market, current difficulties of businesses and solutions to develop domestic businesses.

Since the beginning of 2024, the world and regional situation has been very complicated and unpredictable, with many risks, uncertainties, difficulties and major challenges that have significantly affected production, business and enterprise activities.

In the country, the situation of natural disasters and floods is very complicated, greatly affecting economic and social activities and people's lives, especially the impact of storm No. 3 and the circulation caused by the storm.

In that context, the Government has directed ministries, branches and localities to synchronously and drastically implement many solutions and policies to support people, businesses and production and business activities.

However, with unpredictable developments and many difficulties and challenges from the world and the region, our country's enterprises still have to face many difficulties.

In the first 9 months, the number of enterprises withdrawing from the market was 163,800, an increase of 21.5% over the same period last year.

Of which, the number of enterprises temporarily ceasing business in the first 9 months of 2024 is 86,900 enterprises. Most of them are short-term enterprises, less than 5 years of operation with 36,700 enterprises (accounting for 42.3%); small-scale (less than 10 billion VND) with 77,700 enterprises (accounting for 89.5%).

The number of enterprises waiting for dissolution procedures in the first 9 months of 2024 is 61,500 enterprises, mainly with capital scale under 10 billion VND with 53,400 enterprises (accounting for 86.8%).

The number of dissolved enterprises in the first 9 months of 2024 was 15,400, an increase of 18.9% over the same period in 2023.

What is the cause of the difficulty?

The Ministry of Planning and Investment said it conducted a survey and found that businesses continue to face difficulties and challenges, of which market difficulties are the biggest difficulty for businesses today.

According to the September business trend survey by the General Statistics Office, over 50% of surveyed enterprises faced difficulties from the domestic market and competitive pressure in the market.

Although institutions and laws have received attention, direction, and focused on removing obstacles, there are still some problems and shortcomings that have not been promptly amended and supplemented to suit reality and development requirements.

The situation of arrears and slow issuance of detailed regulations and instructions for law implementation has not been completely resolved.

Decentralization, delegation of authority, and reduction of some regulations, administrative procedures, standards, technical regulations, business conditions... in some areas are not yet thorough; implementation is sometimes inconsistent in some places.

Some mechanisms and policies to encourage and support businesses have been slow to be implemented and are not very effective. Domestic demand has recovered slowly, with total retail sales of goods and consumer service revenue in the first 9 months increasing lower than the same period in 2023 and the period 2015 - 2019.

Along with that, the growth rate of total retail sales of goods and consumer service revenue (excluding price factors) has not had many clear changes .

Although the real estate market has changed, it still faces difficulties; the remaining legal issues of some enterprises and investment projects have not been completely resolved, leading to ineffective exploitation of investment resources.

In addition, according to the Ministry of Planning and Investment, exports are expected to be more difficult in the coming time due to the unpredictable world situation and many risks, especially military conflicts in the Middle East, Ukraine and policy adjustments of some major countries.

In addition, a number of businesses still face difficulties in accessing capital. Credit growth, although improving, has not been as expected. The pressure to mature real estate corporate bonds in 2024 is high.

Many projects are stalled and behind schedule, causing large social resources, both private and public, to be stuck in projects and land, while businesses lack resources to continue expanding investment and production and business.