Firms suffered a potentially disastrous first
quarter in 2012. More than 2,400 firms dissolved in the quarter, reported the
Ministry of Planning and Investment’s Business Registration Management
Department.
Over
3,800 firms had their licences withdrawn and 11,600 firms registered for a
temporarily halt to production or delays to tax payments.
Topping
the list of dismantled firms were retail and wholesale businesses.
Ranking
second were industrial and mining firms, which accounted for 15.05 per cent of
dissolved firms, followed by construction and property firms at 10.54 per cent
and transport-warehousing firms at 10.09 per cent.
Firms
operating in science, technology and education areas occupied 8.2 per cent of
firms going bust.
Consumer
goods and services sectors were all hurt when consumers cut expenses, according
to Vietnam Young Entrepreneurs Association chairman Mai Huu Tin.
Tin
once forecast retail would be one of most profitable businesses this year.
“Firms
have tried their best - cutting costs, curtailing production or operation and
divesting from non-core areas,” said Tin. High borrowing costs, strong
competition from imports, smuggled goods and low consumption all hurt firms.
In
fact, diverse solution packages were launched to rescue firms ranging from tax extensions,
postponements to easing lending rates.
Vietnam
Institute of Economics president Tran Dinh Thien said: “Many firms incurred bad
debts, so they cannot borrow more. Besides, getting loans makes no sense if
firms cannot sell products.”
Thien
proposed the government weigh up a tax reduction and exemption instead of just
delaying tax payments.
“Firms
also need time to heal themselves. Banks could restructure debts or extending
debt repayments for firms,” said Tin.
Bao Duy
| vir.com.vn
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