Fleeing FIE bosses leave problems behind
Fleeing FIE bosses leave problems behind
Over the last few years, many leaders of foreign-invested enterprises (FIEs) have fled the country for various reasons including mounting losses and outright fraud, creating problems not just for employees but also commercial banks and tax agencies.
According to the Ministry of Planning and Investment, by the end of June 2013, the bosses of 518 FIEs with a total registered capital of US$903 million have fled Viet Nam, leaving big arrears in workers' salaries, tax payments, bank loans and social insurance premiums.
In southern Dong Nai Province, 54 FIEs with a total registered capital of $173 million have suspended operations. The bosses of 29 of these FIEs have left the country.
In late July 2013, customers of the Tricon Tower in Ha Noi's Hoai Duc District asked managers of Minh Viet JSC – the investor – to return the money they had paid the company for purchasing apartments.
However, they have received no response because the "true boss" or Chairman of the board of Minh Viet JSC, has escaped with some VND400 billion paid by the home-buyers, the Tuoi Tre (Youth) newspaper reported.
The boss of Ado Vina Ltd in southern Binh Duong Province is also absconding, leaving the company's factory closed and arrears of over VND8 billion ($381,000) in bank loans and VND500 million ($23,800) in workers' salaries and insurance premium.
According to the Binh Duong Department of Planning and Investment, the bosses of nearly 20 enterprises among over 2,100 FIEs in the province are missing.
Le Viet Dung, Deputy Director of the Binh Duong Department of Planning and Investment, said relevant authorities have found it difficult to solve problems left by the runaway FIE bosses.
Typically, the assets of enterprises that have been left in the lurch are worth almost nothing because the facilities have been rented, so there is no way to pay up the tens of billions of dong owed in workers' salaries, insurance premiums and loan repayments.
Dung said they have asked the diplomatic corps to help find the FIE bosses, but all such efforts have proved futile.
Localities have to seek loans to pay workers' salaries so that they can minimize the social impacts, Dung told Tuoi Tre.
In a recent report, the Ministry of Planning and Investment admitted that there was no effective measure to prevent FIE bosses from abandoning their facilities in the country.
The current Investment Law does not include any term allowing relevant authorities to withdraw the investment license of an FIE after its investor or manager flees the country.
vietnamnews
