SOEs Remain Leading Taxpayers

The V1000 Ratings was jointly conducted by the Vietnam Report Joint Stock Company, VietNamNet Newspaper and Tax Journal, an affiliate of the General Department of Taxation (GDT), based on data collected, investigated, processed and verified by the organisers.

 

Top 1,000 taxpayers paid VND77 trillion (US$3.7 billion) of corporate income taxes in 2012. The tax amount reflected improved performance in the year.

 

Despite being restructured, SOEs excellently performed as “exemplary vanguards” of the economy in terms of tax payment to the State coffers. They accounted for 52.6 percent of total taxes paid by V1000 companies. This proved high profitability and operating efficiency of cumbersomely structured SOEs after placing more focus on core businesses and reasonable cost reduction.

 

Notably, foreign-invested companies contributed up to 24 percent of corporate income tax paid by V1000 firms. Among the top 458 names on the list, foreign companies accounted for over 45 percent, while private sector and SOEs were 37.1 percent and 17.5 percent, respectively.

 

Last year, the private sector accounted for over 50 percent of new appearances on the V1000 list, but it slid to 37 percent this year. This was a big setback in 2012. Besides, the private sector contributed just 23.4 percent of gross corporate income tax paid by V1000 companies, lower than that of foreign-invested sector. In the shortlisted Top 100 taxpayer list, the private sector contributed just 23.4 percent of corporate income tax, much lower than 64.5 percent by SOEs. Private companies which are still called “rising stars" featured by dynamic and flexible advantages seem to lose their strengths while biggies are returning with rational business strategies.

 

In 2013, the V1000 list comprised more than 130 companies listed the Hochiminh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX). However, they contributed a modest 22 percent of income tax paid by V1000 companies and they were mainly banks, finance companies, mining and petroleum companies. This figure reflected the downward movement of listed companies and profitability seemed to be a big challenge for them in the event of active M&As and intensified influence of foreign enterprises.

 

Industry made up 61.8 percent of corporate income tax paid by V1000 companies, slightly higher than 61.62 percent in 2012, on positive contributions of telecommunications sector (26.9 percent), mining and petroleum (22.7 percent), construction, real estate, building materials (13.9 percent), and food and drinks (13.8 percent). The sector made up for 26.8 percent largely because of banking sector which contributed nearly 23.4 percent of total corporate income tax of V1000 companies. The agriculture, forestry and fisheries contributed about 3.8 percent of aggregate income tax paid by V1000 companies.

 

The proportion of tax paid by mining, petroleum and banking companies in 2012 was much higher than in 2011, while that of telecommunications, construction, building materials and real estate companies declined relatively in 2012.

 

1. PetroVietnam Exploration Production Corporation (Pvep)

2. Viettel Group

3. Vietnam Mobile Telecom Services Company (VMS)

4. PetroVietnam Gas Joint Stock Corporation (PV Gas)

5. Vietnam National Oil and Gas Group (PetroVietnam)

6. Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank)

7. Vietnam Bank for Agriculture and Rural Development (Agribank)

8. Vietnam Dairy Products Joint Stock Company (Vinamilk)

9. Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)

10. Joint Stock Bank for Investment and Development of Vietnam (BIDV)