Mai Linh Taxi plea for debt deadline extension denied

Vietnam Social Insurance Agency has turned down Mai Linh Taxi's proposal to extend their insurance payment deadline to 2038.

Vietnam Social Insurance Agency has turned down Mai Linh Taxi's proposal to extend their insurance payment deadline to 2038.

  

Mai Linh Taxi incurring huge debt

Nguyen Thi Dai from Vietnam Social Insurance Agency said on January 18 that they had received Mai Linh Taxi's proposal.

However, according to the Law on Social Insurance issued in 2014, only the government has the authority to reduce insurance debts, exempt interest or extend the deadline. Vietnam Social Insurance Agency only collected the payments.

Mai Linh Taxi Company has asked for the government's help to pay insurance for employees as they have incurred more than VND180bn (USD7.9m) in losses as of October 31. They blamed the economic downturn in 2008, high interest rates and tough competition with Uber and Grab Taxi for the drop of 30% in revenue.

Mai Linh asked for the terms of its debt of VND150bn to be renegotiated to extend to 2038, and are seeking to have any late payment fines wavered. It also want to exempt VND77bn (USD3.4m) in interest and asked the Vietnam Social Insurance Agency to reduce the debts.