In Vietnam, are commerce enterprises having 200 employees classified as medium enterprises?

In Vietnam, are enterprises having 200 employees classified as medium enterprises?

Pursuant to Clause 3, Article 5 of the Decree 80/2021/NĐ-CP stipulating Criteria for identification of SMEs:

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.

As regulations above, at first, it is obligatory to determine the average annual number of people participate in social insurance among 200 employees in your company. If the average annual number of people participate in social insurance excceeds 100, that enterprise is not classified as commerce medium enterterprises.

How to determine employees who participate in social insurance of medium enterprises?

Pursuant to Article 7 of the Decree 80/2021/NĐ-CP stipulating 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.

Therefore, determination of average annual number of employees who participate in social insurance of SMEs is carried out as prescribed. 

Best regards!