VietNamNet Bridge – Watchdog agencies have been embarrassed in dealing with the debts left by the foreign invested enterprises (FIEs) after running away.
Not only one, but three or four agencies and companies are hunting down traces of the Kwang Sung Vietnam Company, including customs, taxation, social insurance agencies and the infrastructure developer.
“They came and asked where has the investor gone?,” said Nguyen Van Thanh, Deputy Head of the Board of Management of the Industrial Zones in Dong Nai province.
The company, which had the registered head office in Tam Phuoc Industrial Zone, now cannot be found at the address. Meanwhile, the company still has not paid the 7.4 billion dong in tax.
According to Dau tu, the sum of 7.4 billion dong includes the tax on the imported equipments and machines by April 10, 2012, had reached 5.574 billion dong, including 49.987 million dong in import tax and 5.524 billion dong in value added tax). Besides, Kwang Sung still has to pay tax on the materials imported to make products for export (but there has been no export product yet) worth 1.84 billion dong (8.945 million dong in import tax, VAT 1.232 billion dong and 599 million dong for tardiness in tax payment).
Kwang Sung has also been owing 500 million dong to the social insurance agency since 2010.
Leaving the head office in April 2011, Kwang Sung has also been traced by creditors. “We are trying to contact the investor, but we fail to meet them,” Thanh said, adding that the companies which escape with unpaid debts like Kwang Sung are numerous in Vietnam.
Binh Duong province is the locality where there are many escaped businesses. The name Diing Long has become well known after it appeared on most local newspapers as a big debtor some months ago.
Currently, the provincial customs agency now gathers strength to deal with the case of Woolim Vina. The company still has not paid the tax sum of 13 billion dong, while it stopped operation in November 2008 already.
The number of FIEs which still do not pay tax is so high that the General Department of Customs has requested local customs agencies to check the lists of the enterprises which still do not pay tax to apply timely measures.
Hoang Viet Cuong, Deputy General Director of the General Department of Customs, said that the unpaid tax of both domestic and FIEs just accounts for 2 percent of the total tax receivable. He also said that there are not too many businesses escaped from the registered addresses, but it’s necessary to give warnings about the problem.
The general department late last week released a document requesting local customs agencies to update information about escaped businesses in the risk management information system (Riskman 2). This would allow discovering the problems soon to supervise enterprises and deal with the escaped enterprises.
However, the thing that needs to be done is not only to collect tax arrears, but to punish the escaped businesses as well. “Other businesses cannot set up their workshops and factories on the places which once were allocated to the escaped investors. State management agencies would not accept this until the names of the old businesses are eliminated,” Thanh explained.
Since local authorities do not know how to deal with the problems, they have to consult with the Ministry of Planning and Investment. The Thai Binh provincial Industrial Zone Management Board has asked about the case of Tan Dai Viet Company, while Dong Nai province is also considering asking the ministry.