FDI enterprises attained the highest revenue but paid the lowest taxes
By Tieu Phong
February 09, 2018 | 03:55 PM GMT+7
FDI enterprises that gain the highest revenue and profits in Vietnam make the smallest contribution to the State budget, according to report on major indicators assessing enterprises’ development level in provinces and municipalities in 2017 and the 2010 - 2016 period just released by the Ministry of Planning and Investment.
In 2016, the enterprise sector contributed VND962.2 trillion (US$42.3 billion) to the State budget, an average annual increase of 14.8 per cent in the period of 2010 - 2016.
Despite earning the lowest before-tax profit among all economic components, non-State-owned enterprises in 2016 contributed the highest amount of VND434.7 trillion (US$19.1 billion) to the State budget, a 17 per cent average annual increase in the 2010 – 2016 period.
State-owned enterprises in 2016 contributed VND277.3 trillion (US$12.2 billion) in taxes, an average annual increase of 10.4 per cent.
Meanwhile, FDI enterprises made the lowest contribution of VND250.9 trillion (US$11 billion) to the State budget in 2016, an average increase of 16.9 p.a. although they obtained the highest before-tax profit among all economic components.
Based on the economic sector, the service sector and the industrial and construction sector are those contributing VND498.3 trillion (US$21.9 billion) and VND462.1 trillion (US$20.3 billion) respectively to the State budget in 2016.
The total before-tax profit of the enterprise sector in 2016 reached over VND 712.9 trillion (US$31.4 billion). Specifically, the industrial and construction enterprises generated VND447.1 trillion (US$19.7 billion), an average annual increase of 14.7 per cent in the 2010-2016 period. Service sector attained VND261 trillion (US$11.5 billion), a 9.6 average annual increase.
Meanwhile, agricultural, forestry and fishery enterprises in 2016 recorded VND4.8 trillion (US$211.8 million), an average annual decrease of 10.9 per cent.
Based on the economic components, in 2016, FDI enterprises achieved VND327.4 trillion (US$14.4 billion) in before-tax profit (accounting for 45.9 per cent of the total before-tax profit of enterprise sector), increasing by an average 17.3 per cent p.a. in the period of 2010-2016.
Non-State-owned enterprises generated VND188.1 trillion (US$8.3 billion) (amounting to 26.4 per cent) in 2016, an annual average increase of 8.4 per cent.State-owned enterprises received VND197.4 trillion (US$8.7 billion) (equivalent to 27.7
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