Why are businesses still unable to dissolve after 10–15 years of inactivity?

Closed for years, but the records remain unresolved

In an interview with VietnamFinance on 21 October 2026, Hanoitax chairwoman and CEO Lê Thị Yến argued that inactive businesses should not be treated in the same way as tax evaders.

A failed business may have closed its doors years ago. Yet its tax identification number can remain on administrative systems, with incomplete records and outstanding obligations to resolve.

According to Yến’s consulting experience, some businesses that stopped operating 10–15 years ago still struggle to dissolve because accounting records are missing, documents have been lost, former employees have left or there is no money to complete the paperwork.

The cost of completing the process can become an additional burden for people whose businesses have already failed.

Not every inactive business has deliberately broken the rules

Yến proposes distinguishing four groups to determine an appropriate response. This is an expert recommendation, not an automatic exemption from obligations for every closed business.

1. Failed startups or businesses registered using falsified identity information: Verify the circumstances and consider simpler procedures where there has been no actual activity, revenue or tax liability.

2. Businesses still operating but filing incomplete declarations: Check and reconcile the data and address tax obligations under applicable rules.

3. Inactive businesses lacking records or resources to dissolve: Consider suitable procedures that reduce compliance costs while addressing outstanding obligations.

4. Businesses using legal entities to trade invoices or evade taxes: Apply enforcement according to the nature and severity of the violations.

Cleaning up tax records and addressing bottlenecks

Since May 2026, the Tax Department has implemented a campaign to clean up tax identification records and remove business bottlenecks, focusing on reviewing, classifying and resolving outstanding cases.

Stopping business activity is not the same as tax evasion, but it does not automatically end tax obligations either. Businesses still need to complete the relevant procedures and address their obligations under the law.

The business lesson: a market needs both entry and exit routes

A healthy startup environment is measured not only by the number of new businesses, but also by whether companies can exit transparently, lawfully and at a reasonable cost.

Business always involves risk. Failure is part of a market economy, but fraud must be distinguished from genuine operating difficulties.

Lower exit costs and clearly defined legal responsibilities can help entrepreneurs resolve unfinished matters, restructure and start again.

A question worth considering: Should dissolution procedures be simplified for businesses that have been inactive for years, generate no revenue and are willing to cooperate?

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