Dong Phuong Petroleum Joint Stock Company (Orient Oil) is the leading tax debtor in Can Tho City, with over 760 billion VND owed as of May 2021. The company produces and operates transit warehouses, store systems, and trades petroleum products, solvents, and chemicals. Orient Oil’s manufacturing factory was approved for planning as part of the oil and gas industry development project for the period 2015-2025, with a design capacity of 130,000 MT per year.
The company’s former chairman, Mr. Nguyen Thanh Tung, is connected to the Van Thinh Phat case through his involvement in creating false and illegal loan documents. In past years, Orient Oil has struggled with constant tax debt. In 2018, the business failed to fulfill its tax obligations, leading to a debt of about 108 billion VND. This debt gradually increased to nearly 1,000 billion VND by the end of June 2021. Additionally, the company faced challenges repaying bank debt due to debt repayment violations by BIDV recovering assets including the Dong Phuong oil and gas factory.
Alongside Orient Oil, the Can Tho Tax Department identified 162 other companies with outstanding tax obligations. Three additional businesses owe tax debts amounting to hundreds of billions of VND: Ngan Thuan Construction Company Limited (Ngay Nam), Tay Nam SWP Petroleum Company Limited (Tay Nam SWP), Can Tho branch and Nam Song Hau Petroleum Company Can Tho branch (Nam Song Hau). These companies highlight the importance of fulfilling tax obligations and managing financial responsibilities in the business sector.
However, despite these challenges Orient Oil is committed to resolving its issues by working closely with stakeholders such as banks and government agencies to develop payment plans that prioritize meeting its financial obligations while also addressing any issues related to its operations or reputation.
Overall, it’s important for businesses in Vietnam to understand their financial responsibilities and ensure they are meeting their tax obligations while also maintaining good relationships with stakeholders such as banks and government agencies.
