DPI issues letter of violation to 952 businesses in Danang

18-Sep-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

On September 15, the Danang City Department of Planning and Investment (DPI) issued a letter of violation to 952 businesses stating that they have not operated at their registered addresses for over a year since the date the tax authority had issued a letter announcing that it could not contact them.

Many of these businesses operate in the service, tourism, construction and F&B industries, serving Chinese tourists in Ngu Hanh Son District, Danang City.

More than 50 percent of the businesses mentioned in the list are small and very small enterprises operating in the two neighbouring districts of Son Tra and Ngu Hanh Son, considered as the “kingdom of tourism” of the coastal city.

Reportedly, many of them are restaurants, souvenir shops, hotels, etc. that mainly serve Chinese customers in Ngu Hanh Son District. They have been seen as “satellites” of the nearby Crown Plaza Danang complex, including a resort and casino.

During its heyday, the area welcomed thousands of foreign tourists in a single week from more than 20 flights from China. But in the past three years, Chinese visitors to Danang have declined. Since earlier this year, due to Covid-19, the Chinese tourist arrivals into the city have been almost nil.

Therefore, a series of restaurants, shops and businesses in this area were forced to stop operations, including Kaohsiung Construction & Trading Co., Ltd, Minh Trieu Chau One Member Company Limited or Bao Hong Phat Company Limited, to name a few.

Meanwhile, many small tour operators and hotels in Son Tra District that have closed their doors for a while are also on the list. In the downtown area, the consulting firms run by Korean and Japanese investors have also stopped operations, such as Block Co Plus Vietnam Co., Big Japan Vietnam Co., Serene Shan Co. or Hj Vina Co.

DPI requires the legal representatives of the businesses to come to the department for a meeting. After 10 working days from September 15, the department will issue a decision revoking their certificates of business registration in accordance with the law.

In another development, in the eight months of 2020, DPI issued new business registration certificates to 2,967 enterprises, branches and representative offices, with a total registered charter capital of VND16,171 billion, down 27.4 percent in volume and 18 percent in value year-on-year.

It completed dissolution procedures for 535 businesses and affiliated units; meanwhile, 1,628 businesses, branches and representative offices had to suspend operations.

Some 871 enterprises have registered to do business again.

https://english.thesaigontimes.vn/78544/dpi-issues-letter-of-violation-to-952-businesses-in-danang-.html

 


Category: Business, Vietnam

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