An estimated 24,931 Vietnamese enterprises ceased operations in the first six months of this year, the vast majority of them private firms, according to the General Department of Taxation.
Many Vietnamese steel firms are operating at loss
Of the total, 24,460 were private companies, leaving only 269 foreign-invested and 202 state-owned firms.
During the same period 40,523 new enterprises were given licenses in Vietnam, including 39,732 private companies, 542 foreign-invested firms and 249 state-owned companies.
By late June this year, Vietnam had 457,343 registered companies, up 39,700 compared to the same period of 2012.
The ministry has also implemented solutions to support businesses and deal with bad debt under the government’s Resolution No.02. The ministry has extended payment schedules for several kinds of tax by three to six months for companies which meet requirements.
The ministry offered a VAT payment time extension to 105,037 companies with a total VND4.428 trillion (USD209.5 million), including 101,858 private firms. Meanwhile, 45,037 enterprises were given extensions on corporate income totaling a combined VND952 billion (USD45.3 million).
The extension is forecast to reduce state budget revenues by VND17.613 trillion (USD838.7 million) and the figure is expected to climb to VND17.58 trillion in 2014.
