Vinashin Begs For government Financial Support

06-Sep-2012 Intellasia | | 7:01 AM Print This Post

The Vietnam Shipbuilding Industry Group (Vinashin) has asked the government to use the loan which was supposed to be used during the group’s restructuring to repay tax debts.

Vinashin begs for government financial support

Vinashin’s total outstanding debt has reached VND639 billion (USD30.6 million) including VAT, import taxes and other kinds of taxes. If they don”t pay on time, they will have to pay interest of 0.05 percent per day.

In a report which was sent to deputy prime minister Vu Van Ninh and the minister of Finance on August 23, Vinashin said that five of their members had incurred VND637.8 billion in debts.

To avoid the punitive interest rate and to ensure the group”s operation, four members have been provided VND353 billion from the loan.

The last member, the Nam Trieu Shipbuilding Industry and Construction JSC in Hai Phong City still owe VND248.8 billion in taxes and fees. Vinashin is seeking permission to continue the use state loans combined with its revenue to pay the debt.

This is not the first time Vinashin ask for government financial support.

In early April, this corporation also sent a request to exempt its fine because they did not paid their debts on time. The group said their financial capacity was insufficient. However the Ministry of Finance ruled out the request.

According to the prime minister”s directive, until 2013, Vinashin may have their tax debt payment deadline extend by one year. This exemption is applied to cancelled or unfinished contracts and Vinashin must pay their tax debts in full before apply for the next exemption.

Therefore, since Vinashin hasn”t paid their tax debt of 2011 in full, they are not under consideration for a future exemption.


Category: Business

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