Vietnam: Criteria for determining small and medium-sized enterprises

In order to help the competent authorities have appropriate support policies, Decree No. 39/2018/NĐ-CP of Vietnam’s Government has specified criteria for determining small and medium-sized enterprises (SMEs). To be specific:

SMEs are classified by size, including microenterprises, small enterprises and medium-sized enterprises.

Microenterprises include:

- Microenterprises in the sector of agriculture, forestry and aquaculture and industry and construction have an annual average of 10 employees or fewer who have made contributions to social insurance and total annual revenue is not more than VND 3 billion or total capital is not more than VND 3 billion.

- Microenterprises in the trade and service sector have an annual average of 10 employees or fewer and total annual revenue is not more than VND 10 billion or total capital is not more than VND 3 billion.

Small enterprises include:

- Small enterprises in the sector of agriculture, forestry and aquaculture and industry and construction have an annual average of 100 employees or fewer who have make contributions to social insurance and total annual revenue is not more than VND 50 billion or total capital is not more than VND 20 billion, other than the microenterprise prescribed in Clause 1 of this Article.

- Small enterprises in the trade and service sector has an annual average of 50 employees or fewer who have make contributions to social insurance and total annual revenue is not more than VND 100 billion or total capital is not more than VND 50 billion, other than the microenterprise prescribed in Clause 1 of this Article.

Medium-sized enterprises include:

- Medium-sized enterprises in the sector of agriculture, forestry and aquaculture and industry and construction have an annual average of 200 employees or fewer who have make contributions to social insurance and total annual revenue is not more than VND 200 billion or total capital is not more than VND 100 billion, other than the microenterprise small enterprise prescribed in Clause 1 and Clause 2 of this Article.

- Medium-sized enterprises in the trade and service sector have an annual average of 100 employees or fewer who have make contributions to social insurance and total annual revenue is not more than VND 300 billion or total capital is not more than VND 100 billion, other than the microenterprise and small prescribed in Clause 1 and Clause 2 of this Article.

Decree No. 39/2018/NĐ-CP of Vietnam’s Government came into force from March 11, 2018.

- Thao Uyen -

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE