I. Introduction to the business sectors of the corporation
Current laws do not have regulations on the definition of the business sectors of a corporation. It can be simply understood that the business sectors of a corporation are the fields of business of a group of companies that are related to each other through share ownership, capital contributions, or other linkings established for the purpose of investments to enable establishments and business development strategy.
The business sectors of the corporation depend on the development orientation and the scale of operations of the corporation. Each corporation can operate in multiple business sectors, specifically:
- Manufacturing sector: The corporation can operate in the field of producing goods ranging from consumer goods to industrial goods such as automobiles, electronics, household appliances, clothing, food, construction materials,...
- Financial services sector: The corporation can operate in the financial services sector, such as banking, insurance, financial consulting, asset management, stocks, etc.
- Information technology services sector: The corporation can provide services related to information technology such as software development, network infrastructure management, cloud services, information security,....
- Retail commerce sector: The corporation can operate in the field of retailing goods and services to end customers, including stores, supermarkets, shopping centers, e-commerce websites,...
- Logistics sector: The corporation can provide logistics services such as transportation, warehousing, logistics, supply chain management, etc.
- Energy and industrial sectors: The corporation can operate in the field of energy production and distribution (electricity, oil and gas) or in the chemical, ceramics, steel industries, etc.
- Real estate and construction sector: The corporation can participate in the development and management of real estate projects, residential buildings, offices, commercial centers,....
Above are some examples of the corporation's business sectors. Depending on the strategy and business objectives, the business sectors of the corporation can be diverse and rich.
II. Characteristics of the business sectors of the corporation
The characteristics of the corporation's business sectors include:
- Large scale: Corporations often operate on a large scale, with many parent companies, subsidiaries, linked affiliated companies, branches, business locations, representative offices, and employees. This allows them to have the ability to expand and engage in various industries.
- Multi-sector: Corporations operate in various fields. They can own and operate companies in various fields, from production to services and commerce. The corporation often focuses on diversifying its business sectors to reduce risk. By operating in multiple sectors, they can seize new opportunities and mitigate the negative impact of a single business sector.
- Professional management: Corporations often have professional management processes and strong internal control systems to ensure efficient operations and compliance with regulations and rules.
- Cooperation and connection: Corporations have the ability to cooperate and connect with partners, customers, and suppliers across various sectors. This helps create new opportunities and build a vast network of partners.
- Influence: With large scale and multi-sector involvement, corporations often have a significant impact on the business sector and the economy of the country or region in which they operate.
- Development strategy: Corporations often have a long-term development strategy to grow and expand the market with diverse business sectors. This includes investing in research and development, acquiring companies, and scaling operations.
III. Business sectors of some corporations in Vietnam
The business sectors of some corporations in Vietnam are as follows:
- Vingroup corporation: Real estate, retail, automobile manufacturing, electronics, pharmaceuticals, education, healthcare.
- Masan Group corporation: Food.
- FPT Corporation: Information technology, telecommunications, education.
- Hoa Phat Group corporation: Construction materials, agriculture, home appliances, real estate.
- DOJI Jewelry corporation: Jewelry industry, gold and silver, gemstones, diamond industry, real estate, banking and finance, restaurant services.
- Vietnam Oil and Gas Group corporation: Oil and gas, finance, banking, transportation, insurance.
- Military-run Industry—Telecom corporation: Telecommunications
- Vietnam Electricity Group corporation: Electricity
- Vietnam Petroleum Corporation: Importing, exporting, and trading of petroleum; petrochemical products, supplies, and equipment serving the petroleum industry and other industries; petroleum transportation and oil depot business; surveying, designing, and constructing petroleum and civil engineering works; hotel and tourism services; insurance; real estate; transportation; chemicals; liquefied gas; general import and export; mechanics; information technology; telecommunications & automation.
- Vietnam National Coal and Mineral Industries Group corporation: Coal industry, mineral industry, electricity industry, explosive materials, and other services.
- Vietnam Post and Telecommunications Group corporation: Telecommunications, information technology.
IV. Some factors influencing the choice of business sectors of corporations
Some factors influencing the choice of business sectors for corporations include:
- The purpose of investments to enable establishments and corporation development strategy.
- The corporation's investment capital for business sectors with legal capital requirements.
- The development potential of the chosen business sector.
- The corporation's advantage in developing the chosen business sector.
V. Some notices related to the business sectors of the corporation
Some notices related to the business sectors of the group are as follows:
5.1. Is the business sector of the corporation dependent on the charter capital factor?
The business sectors of the corporation are dependent on the charter capital factor for conditional business sectors with regulations on legal capital.
Example: For a group with a corporate group operating in the stocks business sector, there is a requirement for a minimum charter capital for stocks business transactions in Vietnam as follows:
- Stock brokerage: 25 billion VND;
- Proprietary trading: 50 billion VND;
- Underwriting of securities issuance guarantee: 165 billion VND;
- Stock investment consultation: 10 billion VND.
In the case where an organization requests a license for multiple business transactions, the minimum charter capital is the total amount of capital corresponding to each transaction. (Pursuant to Clause 1, Article 175 of Decree No. 155/2020/ND-CP).
5.2. May I ask about the following issue: My corporation engages in several business sectors; however, among them, there is one sector that falls under the conditional business sectors according to Vietnamese law. Therefore, when executing, does my corporation need to meet that condition for all business sectors or just for that one sector?
When conducting business in conditional business sectors according to Vietnamese law, the corporation must ensure compliance with the conditions for those conditional business sectors without applying those conditions to all other business sectors. (Pursuant to Clause 9, Article 3, Clause 1, Article 5 of the Law on Investment 2020).
VI. Legal consulting services related to the business sectors of the corporation
NGOC PHU LIMITED LIABILITY LAW COMPANY is an experienced unit in consulting and carrying out legal procedures related to the business activities of the group, with processes and tasks including:
- Receiving the Client information for consultation, implementing legal procedures related to the corporation's business sectors;
- Advising and assisting the Client in preparing documents to complete legal procedures related to the corporation's business sectors;
- Drafting documents, representing clients in dealings with competent state authorities;
- Receiving, notifying, and delivering the results to the Client.
