More than 22,610 Ho Chi Minh City-based enterprises pulled out of the market between January and March, nearly double the number of newly-established firms in the metropolis, according to the city’s tax department.

Of the total, 249 businesses are conducting procedures for dissolution while 3,720 others have halted operations.

Over 13,600 companies temporarily suspended their operations, up 16.9 percent year on year, while the rest gave up their business addresses.

Data from the Ho Chi Minh City tax department also indicated that 12,486 companies were set up in the city during the first quarter of 2023.

Ho Chi Minh City is still facing challenges over its socio-economic growth and its economic indicators are weakening. The real estate and financial markets are currently in turmoil.

In addition, the scarcity of orders and funds, coupled with shrinking consumption, was attributed to the massive withdrawal of firms from the city.

The amount of money submitted to the tax agencies by many enterprises, especially major companies, plunged during the January-March period.

Specifically, Apple Vietnam’s corporate tax payment dropped by VND287 billion (US$12.2 million) year on year, while the corporate tax of brewer Heineken fell by VND403 billion ($17.1 million).

The tax payments by giants Samsung, Hoa Binh Construction Group, and Hung Thinh Corporation were cut by VND109 billion ($4.6 million), VND152 billion ($6.5 million), and VND135 billion ($5.8 million), respectively.

Statistics showed that four of nine key services posted negative growth.

The city’s tax department forecasts that Ho Chi Minh City’s budget revenue will reach a mere VND69.2 trillion ($3 billion) in the second quarter, down 15 percent from the year-ago period.

The city is expected to collect VND163.5 trillion ($7 billion) for the state budget in the first half of the year, meeting 51 percent of the target and dropping by six percent year on year.

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