Mai Linh Chairman writes letter asking for help to cancel social insurance debt

Source of informationVnExpressMai Linh Joint Stock Company has just sent a petition to the Vice Chairman of the National Assembly's Committee on Social Affairs and the General Director of Vietnam Social Security to request exemption of interest and penalties for social insurance debt.

The petition for review, signed by Mai Linh Chairman Ho Huy, said the company is facing fierce and unfair competition from rivals Grab and Uber, causing revenue to decrease by 30% compared to previous years.

As of October 31, 2017, the social insurance, health insurance and unemployment insurance debt of this enterprise was nearly 182 billion VND, of which the principal debt was more than 105 billion VND and nearly 77 billion VND in interest.

Facing the risk of tens of thousands of workers losing their jobs and losing their big brand, Mai Linh requested the National Assembly's Committee on Social Affairs, the Ministry of Finance, and the Vietnam Social Security to resolve the urgent difficulties ahead so that the company can maintain and develop in the long term.

Mai Linh's chairman affirmed that he has continuously sought solutions to revive the business, such as negotiating debt extensions with individual investors, negotiating loan interest rates, opening a technology-based motorbike taxi service, etc. However, Mr. Ho Huy admitted,The company only secures finance to maintain daily business operations.

"Without support from competent State agencies in the near future, Mai Linh will certainly lose its ability to pay in a very short time due to insufficient revenue to pay due debts, overdue debts and outstanding tax obligations, social insurance, health insurance and unemployment insurance," said Chairman Ho Huy.

According to the proposal this enterprise sent to the competent authority,Mai Linh wants to be exempted from calculating interest on the old amount (over 150 billion VND) for each company in the system to pay the principal within 20 months from the beginning of 2018, paying 6 billion VND per month and exempted from late payment penalties.

"During the principal repayment process, Mai Linh hopes that Vietnam Social Security will consider debt forgiveness and debt reduction so that the unit can overcome difficulties, have conditions to repay the principal to Social Security and ensure jobs for 24,000 workers," the unit proposed.With insurance obligations arising from January 1, 2018, this unit commits to fully perform.

However, texchange withVnExpress, Mai Linh's media representative refused to comment on the above information. In addition, this person said that he had checked internal departments and offices since yesterday afternoon but this document did not appear.

In a related development, according to the provisions of the Penal Code, from January 1, 2018, violations of compulsory social insurance debt are considered crimes.If a criminal case occurs, the investigation agency will intervene, the People's Procuracy will prosecute, and the People's Courts at all levels must accept and try the case...

According to Mai Linh Group's financial report, by the end of the second quarter of 2017, this enterprise had accumulated losses of nearly 800 billion VND, approximately 80% of its charter capital. With the warehouseAccumulated losses and a difference of more than VND 1,300 billion between total short-term debt and total short-term assets in the semi-annual financial report, the auditor expressed doubts about the company's ability to continue operating.Notably, Mai Linh's total number of employees as of the end of June 2017 was only nearly 24,000 people, a decrease of nearly 6,000 people (equivalent to 20%) compared to the end of 2016.