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Banking sector thriving, production sector facing big difficulties
The banking and telecommunications sectors are leading business fields in terms of the capability to create profit – this is the conclusion drawn from the V1000 ranking, the list of 1000 enterprises which pay the highest volumes of corporate income tax, announced by Vietnam Report.
Enterprises in the banking sector have been compared with the “high-capacity money printing machines” of the national economy in 2007-2009 because they were the biggest corporate income tax payers during that period. The enterprises accounted for up to 25.96 percent of the total profit gained by 1000 enterprises in V1000.
The second and third positions are held by telecommunications sector (14.01 percent) and mining industry (10.42 percent). Other business fields only accounted for small proportions, mostly below 10 percent.
At the bottom of the list of top 10 business fields which pay high corporate income tax to the state is agriculture – forestry – fisheries sector with the modest proportion of 3.17 percent.
The figures show that Vietnam still has a lot to do on its path toward industrialization and modernization. Industrial and manufacturing enterprises, with their limited capability to create profit, still cannot play the prominent role in the national economy they deserve..
The automobile, motorbike and transport vehicle manufacturing industry in the production sector holds the ninth position in the top 10 business fields that pay highest tax.
The 10 business fields which had biggest paid tax sums in 2007-2009
The 10 business fields which had biggest paid tax sums in 2007-2009
|
No |
Branches |
The paid tax sums (Trillion dong) |
|
1 |
Banking |
18,244 |
|
2 |
Information-telecommunications |
11,819 |
|
3 |
Mining industry |
8,793 |
|
4 |
Real estates |
4,336 |
|
5 |
Food - Drinks- fast consumer goods |
4,193 |
|
6 |
Construction – Construction materials |
3,929 |
|
7 |
Freight - Storage |
3,787 |
|
8 |
Finance-Insurance |
3,662 |
|
9 |
Automobile and vehicle manufacturing |
2,867 |
|
10 |
Agriculture-Forestry-Fisheries |
2,671 |
Biggest profit makers are in Hanoi and HCM City
The statistics show that though the number of enterprises from HCM City in V1000 is 1.5 times higher than the number of enterprises of Hanoi, the total volume of corporate income tax paid by enterprises from Hanoi was higher than that of HCM City.
The 1000 enterprises paid 84 trillion dong in corporate income tax in 2007-2009. Of this amount, the enterprises in Hanoi made up to 42.8 percent, while the enterprises in HCM City made up 34.15 percent.
The majority of enterprises in Hanoi listed in V1000 are big enterprises, including four powerful economic groups, namely the Electricity of Vietnam, the Vietnam Coal and Mineral Industries Group, Bao Viet Finance Group and PetroVietnam. This explains why Hanoi-based enterprises had the highest paid tax volumes.
Meanwhile, other provinces and cities have few enterprises listed among the biggest tax payers. Except Dong Nai and Binh Duong, the two newly emerging industrial provinces, other cities and provinces only have some 20 enterprises listed in V1000 and accounted for less than 10 percent of the total tax sum paid.
This shows that enterprises still want to locate themselves in big cities, while they do not think of setting up businesses in other provinces and take advantage of the local resources.
On October 22, 2010, the V1000 organization board, including Vietnam Report, VietNamNet newspaper and Thue (Taxation) journal belonging to the General Department of Taxation, will organise the ceremony to declare 1000 Vietnamese biggest corporate income tax payers at the National Convention Centre in Hanoi
The ceremony is expected to witness the participation of the leaders of the Communist Party, the State, the managers of the 1000 enterprises, as well as domestic and foreign economists and experts.
This is a big opportunity to show appreciation to the enterprises which produce good business results, strictly obey the laws, especially the taxation laws. PV Gas will be the golden sponsor and DIC Group will be the silver sponsor for the ceremony.
vietnamnet, VNR500
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