Up to 38% small and medium-sized enterprises (SMEs) admitted to paying bribes in 2011, up from 34% 2009, according to a report based on a survey of 2,500 enterprises conducted in ten provinces last year.
Larger enterprises are 10% more likely to use bribes than smaller ones
The report named "Characteristics of the Vietnamese Business Environment: SME Survey in 2011", was implemented by the Vietnam Central Institute of Economic Management (CIEM) and the World Institute for Development Economics Research, Copenhagen University and Institute of Labour Science and Social Affairs.
The report indicated that up to 30% of SMEs payed bribes for dealing with tax collectors in 2011, compared to the rate of 26% in 2009. They said the bribes were easier access to needed public services. Nearly 10% of SMEs gave “informal payments” for licenses in 2011 and 5% used bribes as a way to deal with their customers.
The report also said that larger enterprises are 10% more likely to use bribes than smaller ones, and that registered businesses spend more on bribes than unregistered ones. Companies in the southern region spend less on bribes than those in the north.
According to the report, the number of companies which have informal loans was double that of formal loans. Dr. Pham Thi Thu Hang, General Secretary of the Vietnam Chamber of Commerce and Industry (VCCI), said this reveals the difficulties facing SMEs in the credit market, a situation that policy has largely ignored.
“If the trend continues, a number of SMEs are likely to simply give up the game. In the first nine months of this year, businesses saw huge inventories, and more than 42,000 halted operations or faced bankruptcy,” she noted.
Policies were also needed to boost labour productivity, said the report, highlighting that 40% of surveyed firms reported lower labour productivity growth in 2011.