Criteria for identifying small and medium-sized enterprises taking effect from October 15th, 2021

LEGAL UPDATES

Criteria for identifying small and medium-sized enterprises taking effect from October 15th, 2021

From October 15th, 2021, Decree 80/2021/ND-CP guiding the Law on Supporting Small and Medium Enterprises will officially take effect. Accordingly, the criteria for identifying small and medium-sized enterprises (besides micro enterprises) are specified as follows: 

(1) Small business         

  • In the field of agriculture, forestry and fishery; Industry and construction sector:         

+ The average number of employees participating in social insurance is no more than 100 people annually; 

+ Total revenue of the year does not exceed VND 50 billion or the total capital of the year does not exceed VND 20 billion, and not being a micro-enterprise as prescribed in the Decree. 

  • In the field of trading and services

+ The average number of employees participating in social insurance is no more than 50 people annually; 

+ Total revenue of the year does not exceed 100 billion VND or total capital of the year does not exceed 50 billion VND, and not being a micro-enterprise as prescribed in the Decree. 

(2) Medium enterprises 

  • In the field of agriculture, forestry and fishery; Industry and construction sector:         

+ The average number of employees participating in social insurance is no more than 200 people annually; 

+ Total revenue of the year does not exceed 200 billion VND or total capital of the year does not exceed 100 billion VND, and not being a micro-enterprise or small enterprise as prescribed in the Decree. 

  • In the field of trading and services: 

+ The average number of employees participating in social insurance is no more than 100 people annually; 

+ The total revenue of the year does not exceed 300 billion VND or the total capital of the year does not exceed 100 billion VND, and not being a micro-enterprise or a small enterprise as prescribed in the Decree.

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This legal update is for general information only and is not a substitute for legal advice.