Floods drive up business dissolution
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Newly-registered businesses in January dropped 4 per cent on year to 5,087, while the number of dissolved business units increased 79 per cent on year to 1,094, according to the Commerce Ministry's Business Development Department.
It is believed that floods drove several companies out of business. There are nearly 600,000 registered business entities in Thailand.
Throughout 2011, the number of newly-setup business units rose by 4,627 or 9 per cent on year to 55,403. Dissolved businesses were numbered 10,400, an increase of 3,150 or 43 per cent.
Deputy Commerce Minister Siriwat Kachornprasart is convinced that the business sector would recover from floods in the first quarter and things would return to normalcy in the second quarter.
This year, the ministry expects the formation of 60,000 business entities, up 10 per cent from last year, he said. Many of them should operate in the construction sector as well as electrical sector.
