In a surprising turn of events, a business household in Dak Nong province, Vietnam, has been mistakenly declared inactive by local authorities, leading to significant repercussions for its owner. On March 28, 2025, a leader of the People's Committee of Gia Nghia City confirmed that Mr. Ngo Ngoc Khanh, the Chairman of Dak Nia Commune, admitted to mistakenly "killing" the business registration of DNo FarmStay, a household enterprise that was actively operating.
The confusion began on December 18, 2024, when Mr. Khanh contacted Mr. Bui Xuan Thanh, the head of Dong Tien village, to verify the operational status of DNo FarmStay. Mr. Thanh informed Mr. Khanh that he had no information regarding the business or its legal representative, Mr. Bui Dinh Thuan. Trusting this information, Mr. Khanh signed a confirmation stating that DNo FarmStay was not operating at its registered address.
Following this confirmation, the tax authority proceeded to close the tax code for DNo FarmStay, a decision that would soon have significant consequences for its owner. On March 10, 2025, Mr. Bui Dinh Thuan found himself in a precarious situation when a local bank denied him a loan due to the closure of the business's tax code. This shocking revelation prompted him to investigate the matter further.
Mr. Khanh later explained to reporters that the local government had not been fully informed about DNo FarmStay's status, as it was a newly established business. "I did not know who was listed on the business license for this farm, and sometimes I rely on the name of the person on the business registration to make decisions," he admitted, acknowledging the miscommunication that led to the erroneous closure.
In response to the unfolding situation, Mr. Khanh directed local tax officials to re-verify the operational status of DNo FarmStay. On March 21, 2025, officials from the Gia Nghia - Dak Glong Inter-district Tax Team coordinated with local tax management to restore the tax code. They found that DNo FarmStay had indeed been operating and had a signboard displayed at its location in Dong Tien village, contrary to earlier reports.
The tax authority had initially closed DNo FarmStay's tax code because the business had failed to submit tax declaration documents after receiving its business registration certificate in January 2024. Tax officials had made several attempts to contact the business via the registered phone number, but they received no response. Consequently, they worked with the local People's Committee to verify the business's operational status.
Upon confirming that DNo FarmStay was indeed operational, the tax officials restored the business's tax code. This incident has raised questions about the communication and verification processes between local authorities and business owners. It highlights the importance of accurate record-keeping and the need for local governments to maintain updated information about businesses within their jurisdictions.
As this situation unfolds, it remains to be seen what measures will be taken to prevent similar occurrences in the future. The incident serves as a reminder of the complexities involved in business operations and the critical role that accurate information plays in maintaining compliance with local regulations.
Mr. Khanh's admission of oversight has sparked discussions about the need for better communication between local governments and businesses. Many in the community are calling for improved systems that ensure all parties have access to accurate and timely information. This case not only affects DNo FarmStay but also raises broader concerns about the treatment of small businesses in Vietnam.
In the wake of this incident, Mr. Thuan expressed relief at the restoration of his business's tax code but also frustration at the bureaucratic mishap that nearly jeopardized his operations. He stated, "I hope this situation serves as a lesson for local authorities to ensure better communication and verification processes in the future. It's crucial for small businesses like mine to have reliable support from the government."
This situation underscores the delicate balance between regulatory compliance and the operational realities faced by small business owners. As Vietnam continues to develop its economy, the relationship between local governments and businesses will be critical in fostering a supportive environment for entrepreneurship.
As the community reflects on this incident, it is clear that transparency and communication will be paramount in preventing similar issues from arising in the future. Local leaders are expected to take steps to enhance their engagement with business owners, ensuring that all parties are informed and that operational statuses are accurately reported and verified.
In conclusion, the miscommunication that led to the wrongful closure of DNo FarmStay's tax code serves as a cautionary tale for local authorities and business owners alike. It highlights the need for diligence in maintaining accurate records and the importance of clear communication channels. As the dust settles on this incident, both the local government and the business community will likely emerge with a renewed commitment to collaboration and transparency.
