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Companies in Vietnam: a brief insight

Companies in Vietnam: a brief insight

Monday 12, 04 2021
The majority of companies in Vietnam are very small and lacking in many factors that help promote the development of their business.

Overview of companies in Vietnam

According to the data in " White Book on Vietnamese Businesses 2020" released by the General Statistics Office (Ministry of Planning and Investment), as of December 31, 2019, there were 758,610 companies in Vietnam. In 2020, there were 134.9 thousand newly established companies. Along with that, there were 101.7 thousand companies temporarily suspending their business, about to be dissolved and completing dissolution procedures. Thus, according to VietnamCredit's estimate, the number of companies in Vietnam (as of December 31, 2020) was about 789.8 thousand, up 4% compared to 2019 despite the impact of the Covid- 19 epidemic. However, this is only a reference number given by VietnamCredit, the exact number will be announced in the upcoming "White Book on Vietnamese Businesses 2021".

White Book on Vietnamese Businesses 2020

Companies in Vietnam are mainly located in the two big cities, Ho Chi Minh City and Hanoi. Ho Chi Minh City is home to 239,623 companies, while the figure for Ha Noi is 155,940 companies. Following are Binh Duong with 31,599 companies and Da Nang with 22,566 companies (according to the data given in the "White Book on Vietnamese Businesses 2020").

Companies in Vietnam are mainly located

In terms of economic sector, 67.1% of businesses operate in the service sector. The industrial and construction sector has more than 200 thousand active enterprises, accounting for 31.6%. The number of companies operating in the agriculture, forestry and fishery sector only accounts for 1.3% - a very modest figure despite the fact that Vietnam is a country with a lot of natural resources.

Features of companies in Vietnam

Except for foreign invested enterprises, the majority of companies in Vietnam are of small and medium size, operating as private enterprises, limited liability companies, and limited liability companies, one-member joint stock company or partnership.

After more than 30 years of economic reform, and more than 20 years of international integration, companies in Vietnam are still very small and lacking in many things. This is caused by both objective and subjective factors.

For objective reasons, companies in Vietnam are bound and constrained by many institutions, policies and regulations such as interest rates, exchange rates and thousands of other procedures and regulations. In addition, they are discriminated right in their home market while foreign invested companies are entitled with a lot of incentives. Besides, the diversification of industries has not kept pace with global trends, so domestic private firms cannot develop in line with global production networks.

The subjective reason comes from the fact that most company in Vietnam are small and heavily family-oriented, with little connection with each other or with the State economy or the collective economy. Additionally, the majority of workers are unskilled while machinery and equipment are outdated. Labour productivity and production efficiency are low, which cannot manufacture high-quality products. Last but not least, management capacity of companies is relatively weak, especially that of private and limited liability companies.

Where to get information of companies in Vietnam

Currently, with the development of the Internet, information about businesses in general and companies in Vietnam in particular is published and can easily be found on the Internet. As a result, people only need to use a computer with network connection to learn about a company, individual or organization instead of going to the Business Registration Offices of the provinces and cities to ask for information in accordance with regulations.

In Vietnam, there are many websites that provide registration information of businesses across the country. Theinformation is compiled by computer programs from official sources such as the National Business Registration Portal or the Tax Information System.

However, when looking up information on these websites, people should bear in mind that sometimes the information might be inaccurate compared to the information in the national business registration database. This is because they only collect and provide business registration information, and do not fully update the changes in registration information of business. Therefore, the information provided on these websites is somewhat similar, but incomplete. Moreover, in many cases, the information might be completely wrong due to technical errors (incorrect information on the legal representative of the enterprise, start date of business, management tax authority, wrong name, etc.)

Where to get information of companies in Vietnam

To get the most updated, accurate and legally valid information of companies in Vietnam, it is advised to visit thewebsite of the National Business Registration Portal. However, the platform just provides very basic information that cannot help you get the best view of a company.

So, how to get the most comprehesive information about companies in Vietnam? If you have read this far, you will have the answer right away. Please use the services of VietnamCredit.

With over 25 years of experience in the business information industry, and huge data aggregated from a variety of sources, we can provide you with a wide range of products including company reports, industry reports, due diligence reports, collection service, company lists, etc. We are confident that we help you get the most detailed view of an individual, a business or even an industry in Vietnam. Please contact us via email [email protected] for more details.

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