Thousands of enterprises suffer in Ha Noi

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VietNam News English - 13 month(s) ago 3 readings

Difficulties in the aftermath of a global economic recession have caused more than 5,300 enterprises in Ha Noi to close this year, according to the capital city's Taxation Department.

HA NOI – Difficulties in the aftermath of a global economic recession have caused more than 5,300 enterprises in Ha Noi to close this year, according to the capital city's Taxation Department.

It is reported that the figure has increased to 87 per cent compared with that of the 2011 quarter average. Enterprises have stopped business or dissolved due to back stock of inventory, lack of funding and low business and production.

A department representative said the number of newly-established enterprises was more than 3,250 in the first quarter of this year, up 3 per cent compared with the last quarter of 2011.

This number of new enterprises was low compared to that of previous years; meanwhile the number of dissolved enterprises was higher, affecting the city's budget.

In the first four months, the city's budget reached over VND52 trillion, equal to 35.6 per cent compared with its estimates. Nearly 1,420 enterprises reduced their tax payments by VND3,540 billion, of which 265 enterprises cut more than VND1billion.

Some districts such as Cau Giay, Chuong My and Quoc Oai received only 30 per cent of the taxes compared with the same period last year. The reason was reported that local enterprises were dealing with many difficulties such as bank interest and the increasing price of materials while down purchasing.

Deputy Chairman of Ha Noi People's Committee Nguyen Huy Tuong said because the Government decided to carry out the VND29 trillion financial solution packages to support enterprises and the market, the city needs to take prompt action to help the enterprises overcome their difficulties.

In the remaining eight months, Tuong said Ha Noi would set out six solutions to complete the assigned budget and finance tasks.

Of these, the city will ask tax and customs offices to implement the preferential solutions on taxes and fees such as extending a deadline for payments of value-added taxes and enterprise income taxes from 2011.

At the same time, the city will push up reforms on administrative procedures and create favourable conditions for enterprises, said Tuong. -- VNS

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