VN puzzled in handling consequences caused by fleeing FIEs The number of foreign invested enterprises (FIEs) reporting loss accounts for 50 percent of the total operational FIEs in  Declaring loss and… There are 14,550 operational foreign invested projects in The Ministry of Finance has found that there are numerous unprofitable FIEs, accounting for 50 percent of the operational enterprises nationwide. Of these, a lot of businesses have reported losses in the last 3 consecutive years. The southern However, a lot of enterprises, after being inspected by taxation agencies, suddenly reported profits or lower losses. The coffee companies in Lam Dong province were among them. A paradox exists that though incurring big losses for a long time, the FIEs still have been expanding their business. Coca Cola has never made profit over the last tens of years in The unusual behaviors of taking loss and scaling up production have raised doubts in the Vietnamese agencies’ mind. In 2011, the Ministry of Finance inspected 921 FIEs which were suspected of conducting the transfer pricing – declaring loss to evade tax. The enterprises then accepted the loss lower by VND6,617 billion and paid the tax arrears of VND1,669 billion. …casting off responsibilities A report of the Ministry of Planning and Investment showed that 518 FIEs with the registered investment capital of $903 million had been found as without ownership by May 31, 2013. The enterprises are mostly from Dr. Nguyen Mai, former Deputy Minister of Planning and Investment, has classified the enterprises into 3 groups. The first includes the ones which could not continue their operation due to the economic recession. The second includes the ones which had no capital when entering Economists said they don’t think the enterprises would cause high economic corollaries, because the number of enterprises with escaped owners is small if noting that there are 12,000 FIEs in However, they have warned that the enterprises would bring big social consequences with tens of thousands of workers losing their jobs. The next “victims” of the enterprises would be commercial banks, partners and social insurance agencies. Source: NCDT |
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