Vietnam: What is a micro enterprise? What are the criteria for identification of SMEs?
- What are the criteria for identification of SMEs in Vietnam?
- How to determine the fields of operation of SMEs?
- How to determine the average annual number of employees who participate in social insurance of SMEs in Vietnam?
- How to determine the total capital of SMEs in Vietnam?
- How to determine the total revenues of SMEs in Vietnam?
What are the criteria for identification of SMEs in Vietnam?
Pursuant to Article 5 of Decree 80/2021/ND-CP, specifying criteria for identifying small and medium-sized enterprises, specifically as follows:
"Article 5. Criteria for identification of SMEs
1. Any micro-enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 10 people, total revenue in the year not exceeding 3 billion VND or total capital of the year not exceeding 3 billion VND.
Any micro-enterprise in the field of commerce and services that that has an average annual number of employees who participate in social insurance not exceeding 10 people, total revenue in the year not exceeding 10 billion VND or total capital of the year not exceeding 3 billion VND.
2. Any small enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 100 people, total revenue in the year not exceeding 50 billion VND or total capital of the year not exceeding 20 billion VND, except micro-enterprises mentioned in Clause 1 of this Article.
Any small enterprises in the field of commerce and service that has an average annual number of employees who participate in social insurance not exceeding 50 people, total revenue in the year not exceeding 100 billion VND or total capital of the year not exceeding 30 billion VND, except micro-enterprises mentioned in Clause 1 of this Article.
3. Any medium enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 200 people, total revenue in the year not exceeding 200 billion VND or total capital of the year not exceeding 100 billion VND, except micro-enterprises and small enterprises mentioned in Clause 1 and Clause 2 of this Article.
Any medium enterprises in the field of commerce and service that has an average annual number of employees who participate in social insurance not exceeding 100 people, total revenue in the year not exceeding 300 billion VND or total capital of the year not exceeding 100 billion VND, except micro-enterprises and small enterprises mentioned in Clause 1 and Clause 2 of this Article."
Vietnam: What is a micro business? What are the criteria for identification of SMEs?
How to determine the fields of operation of SMEs?
According to the provisions of Article 6 of Decree 80/2021/ND-CP, specifying the areas of operation of small and medium-sized enterprises, specifically as follows:
"Article 6. Determination of fields of operation of SMEs
The fields of operation of SMEs shall be determined according to their primary business lines as registered with business registration authorities."
Main industries are determined according to the latest system of economic sectors promulgated together with Decision 27/2018/QD-TTg.
How to determine the average annual number of employees who participate in social insurance of SMEs in Vietnam?
Pursuant to the provisions of Article 7 of Decree 80/2021/ND-CP on determining the average number of employees participating in social insurance per year of small and medium-sized enterprises, specifically as follows:
"Article 7. Determination of average annual number of employees who participate in social insurance of SMEs
1. The number of employees who participate in social insurance means all the employees who get paid by of the enterprise and participate in social insurance in accordance with social insurance laws.
2. The average annual number of employees who participate in social insurance equals (=) the total number of employees who participate in social insurance of all the months in the preceding years divided by (:) 12 months.
The number of employees who participate in social insurance of a month shall be determined at the end of the month according to documents about social insurance premium payment of that month that are submitted by the enterprise to the social insurance authority.
3. In case an enterprise has been operating for less than 01 year, the average annual number of employees who participate in social insurance shall equal (=) the total number of employees who participate in social insurance of the operating months by (:) the number of months."
Accordingly, the calculation of the average number of employees participating in social insurance annually is calculated by the following formula:
Average number of employees participating in social insurance in the year = Total number of employees participating in social insurance of the year: 12
How to determine the total capital of SMEs in Vietnam?
Article 8 of Decree 80/2021/ND-CP specifically provides as follows:
Article 8. Determination of total capital of SMEs
1. The total capital of a year determined in the balance sheet and specified on the financial statement of the preceding year which is submitted by the enterprise to the tax authority. The total capital of a year shall be determined at the end of the year.
2. In case an enterprise has been operating for less than 01 year, the total capital shall be determined in the balance sheet of the enterprise at the end of the latest quarter before the enterprise applies for assistance.
How to determine the total revenues of SMEs in Vietnam?
For regulations on determining total revenues of SMEs, Article 9 of Decree 80/2021/ND-CP provides as follows:
Article 9. Determination of total revenues of SMEs
1. The total revenue of a year is the total revenue from sale of goods, provision of service by the enterprise and specified in the financial statement of the preceding year which is submitted by the enterprise to the tax authority.
2. In case an enterprise has been operating for less than 01 year or more than 01 year but has not generated revenue, the total capital criterion specified in Article 8 of this Decree shall apply.
Here is some of the information we provide to you. Best regards!
LawNet
