Vietnam: Determining small and medium-sized enterprises according to new criteria

Decree No. 39/2018/NĐ-CP specifies new criteria for determining SMEs, which replace previous regulations of Decree No. 56/2009/NĐ-CP of Vietnam’s Government. To be specific:

- Microenterprise:

+ In the sector of agriculture, forestry and aquaculture and industry and construction: having 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;

+ In the trade and service sector: having 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 enterprise:

+ In the sector of agriculture, forestry and aquaculture and industry and construction: having an annual average of 100 employees or fewer who have made 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;

+ In the trade and service sector has an annual average of 50 employees or fewer who have made 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.

- Medium-sized enterprise:

+ In the sector of agriculture, forestry and aquaculture and industry and construction: having 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;

+ In the trade and service sector: having an annual average of 100 employees or fewer who have made 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.

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

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