FIEs neglect to make re-registration, challenging management system
FIEs neglect to make re-registration, challenging management system
A lot of foreign invested enterprises (FIEs) still keep their operation in Vietnam even though their operation duration stipulated in the investment licenses had finished, and they have not made re-registration for continuous operation.
A report of the HCM City Planning and Investment Department showed that 90 FIEs put under the department’s management had their operation duration terminated by the end of January 2014.These included the ones which had to stop their operation in 2013, and the ones which could not operate legally in Vietnam 8 or 10 years ago.
However, only two of them have followed the procedures for business re-registration to be able to continue their operation. They are the Viet Thuan plastic buttons Company and VN Team.
It is still unclear about the other tens of enterprises, if they don’t intend to continue operating in Vietnam or don’t know about the regulation on making re-registration.
A source from the planning and investment department said that three of the remaining enterprises are following the procedures to get dissolved. These include the two joint ventures VikoTrade, Newell Nha Be Vietnam, and Viet Quoc Decoration and Construction Company.
In an effort to urge the FIEs to obey the laws, the department sent letters to all the 90 FIEs to the addresses written down in the investment licenses. However, 50 percent of the letters have returned because of no receiver. The enterprises have either stopped operation or relocated their head offices.
Under the current laws, once the operation duration terminates, FIEs have to dissolve themselves and report about the dissolution to state management agencies.
However, of the above said 90 enterprises, many still have been operational as usual though they do not make re-registration as requested by the laws.
The Thang Long Hotel joint venture (OSCAR) at No 68A Nguyen Hue Street in district 1, HCM City, for example, has been operational without any interruption, though its duration terminated in November 2009 already.
The existence of the enterprises has made the planning and investment department get puzzled. The heads of the department do not know how to deal with the enterprises, except reporting about them to the city’s leaders who would consult with relevant ministries.
The Decree No. 194 dated in 2013 stipulates that the FIEs which have their operation licenses expired and have not made the re-registration, must get dissolved and stop operation.
Some lawyers have called on to punish the enterprises, which deliberately do not fulfill their duty of making re-registration, for the defiance of the laws.
They have affirmed that the enterprises are operating illegally, therefore, the contracts they sign with clients and partners have no legal value. This is challenging the state management system, while causing high risks to the clients. In principle, the illegal enterprises cannot borrow capital from commercial banks.
The Decree No. 194 issued in November 2013 stipulates that the FIEs which have the operation duration terminated, if wanting to continue operation, have to make the re-registration prior to February 1, 2014.
vietnamnet
