Business lines in the current social context are facing significant changes and development. Thus, how is the current state of business lines? To clearly understand important contents, let’s follow the below article of NPLaw.
I/ The state of business lines in the current social context
In the context of international integration and the development of science and technology, business lines are becoming more and more diversified and plentiful. Traditional business lines such as agriculture, industry and services continuously develop, but many new business lines have gradually merged with high technology nature including e-commerce, digital services, artificial intelligence, etc.
Business lines’ diverse and plenty lead to significantly fierce competition between enterprises. Thus, enterprises need to enhance their competitive capacity for product and service quality, prices, marketing, etc., so that they have opportunity for existence and development.
II/ What is a business line?
Business line is a set of business activities related to making and providing goods or services to customers. Business lines may be classified in various ways, such as by products or services, by business scope, or by location.
III/ Characteristics of business lines
Business lines are significantly various, including many different sectors and industries. However, in common, business lines have the following popular characteristics:
- Being activities with profit purposes: Business’s main purpose is a creation of profits. To achieve such a purpose, enterprises need to conduct business and manufacturing operations, and provide products and services meeting the market’s needs.
- Being activities with risks: Business is always adjacent with potential risks. Such risks may be emerged by many different elements, such as market fluctuation, competition, change in customers’ needs, etc,. Enterprises are necessary to have effective risk management measures maximumly limiting damages.
- Being activities with high competition: Business market is always a place with strong competition. Enterprises are required to obtain suitable competitive strategies to achieve particular advantage in the market.
- Being activities with creation: Business is always important to
have creations for developing and existing. Enterprises should have creative ideas to make new and qualified products and services, meeting the market’s needs.
IV/ Some business lines according to Law
Business lines may be classified into the following groups of industries:
- Manufacturing industry: It includes manufacturing activities of goods and products, such as automobile manufacturing, electronics manufacturing, food manufacturing, etc.,
- Commercial industry: It includes purchase and sale activities, and distribution activities of goods and products, such as retail, wholesale, export-import, etc.,
- Service industry: It includes activities providing services to clients, such as
tourism services, transportation services, financial services, etc.
Business lines are always important in an economy. It significantly contributes to the economic-social development of a country.
V/ Some notes of business lines
1. Why are investors not allowed to conduct business lines prohibited by Law?
According to Vietnamese Law, prohibited business lines are those possibly causing negative impacts to society, such as:
- Affecting human health, life and dignity: Business lines trade drugs, weapons, ammunition, explosives, flammable substances, toxic substances, etc. that can significantly affect human health, life and dignity.
- Affecting social order and safety: Activities trading prostitution, human trafficking, firecrackers, etc. can affect social order and safety.
- Affecting the environment: Business lines trade chemicals, minerals, specimens of plants and wild animals, etc. that can affect the environment.
Prohibition of the aforesaid business lines is extremely necessary to protect benefits of the nation and people, protect citizen’s legal rights and interests, ensure social order-safety, and protect the environment.
2. Is a main business line required when registering a business establishment?
Pursuant to Law on Enterprise 2020, when registering to establish an enterprise, the enterprise founder or enterprise must declare business lines in the business registration dossier. Business lines are required to be recorded according to industry codes in the Vietnam Economic Sector System.
Thus, a main business line is a requested content when registering to establish an enterprise. An enterprise can register many business lines, but it must include a main business line that such an enterprise expects to operate more regularly and it brings many primarily revenues and profits.
Above is some contents on business lines. To be received support and advice of legal regulations for business lines from professional lawyers and a team of specialists, Clients may contact NPLaw immediately by some the following information:
