Minister of Industry and Trade Bui Quang Vinh in a report to the National Assembly Standing Committee on the nation's economic and social performance noted that among the firms, 5,083 dissolved, 11,421 halted their operations and 31,477 stopped paying taxes without applying for dissolution.

The ministry said economic difficulties and steep lending interest rates attributed to their closures.

Domestic monetary tightening and global economic turmoil hit local production and led to a rise in the inventory, said the NA committee.

Limited credit and high lending interest rates caused numerous enterprises to narrow their business scale or even incur losses.

According to the government, the first nine months saw 57,800 firms registering for business certificates with total capital pledges of over VND363.7 trillion, down 7.8 percent in the number of newly-registered companies and 4 percent in the registered amount compared to the same period last year.

The Saigon Times - October 5, 2011