Can a Multi-sector Enterprise be Defined as a Small Enterprise?

Article 7 of Decree 39/2018/ND-CP stipulates the determination of the fields of operation for small and medium-sized enterprises (SMEs) as follows:

- The fields of operation for SMEs are determined based on the legal regulations on the economic industry system and the regulations of specialized laws.

- In cases where the enterprise operates in multiple fields, the field with the highest revenue will determine the classification for SMEs. If the field with the highest revenue cannot be identified, the field with the highest labor usage will be used instead.

According to this regulation, if your enterprise (referred to as "DN") operates in construction and trade, the classification as a small enterprise will be based on the field in which your DN has the highest revenue. If this cannot be determined, it will be based on the field where your DN employs the most labor.

Based on the information provided, your DN has a total revenue of VND 100 billion, with trade contributing VND 60 billion and construction contributing VND 40 billion. Therefore, the classification of your DN as a small enterprise will be based on the trade field.

According to Clause 2, Article 6 of Decree 39/2018/ND-CP, the criteria for determining a small enterprise in the field of trade are as follows:

A small enterprise in the field of trade and services has an average annual number of employees participating in social insurance not exceeding 50 people and an annual total revenue not exceeding VND 100 billion or total capital not exceeding VND 50 billion, but not being a microenterprise as defined in Clause 1 of this Article.

Based on this regulation, a small enterprise in the field of trade must meet the criteria: an average annual number of employees participating in social insurance not exceeding 50 people, and an annual total revenue not exceeding VND 100 billion or total capital not exceeding VND 50 billion, but not being a microenterprise.

Thus, your DN must meet the above criteria to be classified as a small enterprise in the field of trade. Since you have not provided sufficient information about the number of employees participating in social insurance in the trade field of your DN, you should refer to the aforementioned regulation concerning your specific case.

Kind regards!