Ministry continues fining Vinashin for unpaid taxes

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The Ministry of Finance has declined the Vietnam Shipbuilding Industry Group (Vinashin)'s request to have its outstanding arrears cleared, VnExpress reported Tuesday.

According to the news website, the state-owned corporation issued the proposal citing financial difficulties.

As a result of the ministry's refusal, the firm will continue to incur fines of 0.05 percent of its outstanding tax debt every day. Vinashin's tax debts amount to hundreds of billions dong, requiring the firm to pay hundreds of millions dong per day.

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Last August, Prime Minister Nguyen Tan Dung issued a decree allowing Vinashin, which nearly went bankrupt after piling up debts of $4.5 billion in 2010, to delay paying import taxes and value-added taxes on imported goods until 2013.

The decree, however, stipulated that the corporation would have to pay all outstanding taxes and fines by December 31, 2011 before it took effect, the news website said.

Vinashin is undergoing a massive restructuring effort in accordance with a government order to focus exclusively on shipbuilding and repair contracts, stopping all other activities.

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