The central city's Tax Department has shortlisted 113 businesses whose total debt is VNĐ1.7 trillion (US$75.5 million), in a report released last week. — Photo dantri.com.vn

DA NANG (Biz Hub) — The central city's Tax Department has shortlisted 113 businesses whose total debt is VND1.7 trillion (US$75.5 million), in a report released last week.

Releasing these names is seen as a drastic measure, as the department focuses on those enterprises that intentionally ignore paying taxes for years.

The department said those businesses are still operating without any difficulties in finance, and they had benefited from the city's preferential policy on land-rent prices and various favourable conditions.

According to the department, leading the list of debtors were Da Nang Information Technology Park Development company, Blooming Tower, Besra Viet Nam, Construction company 579 and construction and consultancy company (Cosevco), with total debt of over VND101 billion.

The report further indicated that the Da Nang IT development company had benefited from support from the city's land clearance, with the first investment of VNĐ50 billion in the Da Nang IT Park project on 314ha in 2012.

The company, which was assigned to become an investor of the project by the city, had left the project vacant for over four years and neglected paying taxes.

Construction company 579 had been in debt due to land-use rights for hundreds of investors in the Phu My An Urban area for years, with unpaid taxes totalling total VND26 billion.

The department said land-use taxes accounted for nearly 80 per cent of total accumulated tax debts. 

In 2014, the city had listed 12 coastal development projects that were slow in beginning or completing projects, though only one project had its business license revoked.

In 2013, Da Nang also revoked two development projects in the downtown area, citing persistent delays.

Da Nang has been a leader in the Provincial Competitiveness Index (PCI) in the past decade, but it only approved 30 foreign direct investment (FDI) projects with a modest fund of US$10 million in the first six months of this year.

The city has 409 FDI projects worth $3.7 billion.

Additionally, tourism real estate remains an investment magnet in this central city, attracting 25 (FDI) projects worth US$1.8 billion. — VNS