Nearly $4,000 Paid to Dissolve Dormant 13-Year-Old Business in Vietnam

In Vietnam, a case has emerged where the former owner of a business, which had been dormant for 13 years without any activity or revenue, had to pay over 80 million VND (approximately $3,200 USD) to officially dissolve the company. This sum included unpaid taxes, late payment penalties, fines, and other associated costs. This incident highlights the complexity of the dissolution process for dormant companies in Vietnam and the significant financial burden involved. It suggests that even when a company ceases operations and generates no income, legally erasing its existence requires cumbersome procedures and a certain level of expenditure. While Vietnam continues its economic growth, many companies are established, and a considerable number face difficulties in continuing operations. Particularly, companies that cannot adapt to economic fluctuations or market changes often go into prolonged periods of inactivity. The government has considered measures to promote the streamlining of these dormant companies, which inefficiently occupy societal resources, but the current case indicates that procedural hurdles remain high. Under the one-party rule of the Communist Party of Vietnam, the government aims to revitalize and improve the efficiency of the economy. Easing regulations on company registration and dissolution is a crucial step towards improving the business environment. However, this case suggests that further improvements are needed in terms of their effectiveness. Unexpected costs like these can pose obstacles for small and medium-sized enterprises and individual business owners looking to restart or embark on new ventures. In its relationship with China, Vietnam navigates a dual aspect of economic interdependence and geopolitical tension. The healthy development of its domestic economy serves as a foundation for overcoming such complex international relations. Facilitating smooth business operations is essential for strengthening the domestic economy, which in turn could contribute to Vietnam's enhanced standing in the international community.