Many businesses facing financial difficulties have been delaying payment for meal services or refusing to pay at all.
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| Many businesses in facing financial difficulties have been delaying payment for meal services or refusing to pay at all |
Debt collection has become a problem for the restaurant since many of the staff who ordered meals are no longer at the company.
AFC Software JS Company gave different excuses to avoid paying their debt of VND8 million (USD761.9). Recently they moved headquarters. After the move they asked for another deferment so they could clean up the new offices. The company made several other moves, leaving the restaurant unable to contact the responsible parties.
Tas Technology and Software Application Company in Cau Giay District also owed VND8 million.
Nguyen Manh Hung, the manager of Com123, complained that a company in Cau Giay District sold its stake in another business. He said that there was no one to accept responsibility. "We've tried to get in touch with company officials, but are frustrated at every turn. We can't find who to collect the money from," he said.
Nguyen Duc Anh, the owner of a rice restaurant in Thanh Xuan District, said they have faced the same problem over the past year. They are currently owed VND50 million (USD2,380) by company on Nguyen Trai Street. He has had no success in trying to collect his debt. Recently he heard that the company was in the process of liquidating its assets.
Nguyen Thu Hoa, an owner of a restaurant in My Dinh Commune, Tu Liem District, said that she has been providing lunch services to around 10 large companies, without payment. Still she continues to provide meals because she is afraid that it will become harder to collect if the service is terminated.
Trickle down
Hoa said that every month she has to spend tens of millions of VND on food and staff. She is only able to stay in business because her suppliers are acquaintances and she does not have to pay rent on restaurant space.
“A lot of companies owe back debts for salaries, not only meal payments," she said.
Nguyen Duc Anh did not have such a lucky situation. He was forced to close his restaurant in Thanh Xuan District because of the losses, largely attributable to large companies unwillingness to pay their bills. Even though he increased his prices for rice lunches from VND20,000 to VN25,000 due to rising costs, he was still unable to maintain his business. In turn, he still owes many of his suppliers.
