Business code in Decision 27/2018/QD-TTg

Business code is a core component in Vietnam’s economic sector system, currently regulated in Decision No. 27/2018/QD-TTg. This system encodes and classifies business activities into levels of detail, helping to standardize business information. This decision provides an important legal framework, requiring businesses to update their business lines accordingly. The following content will analyze the main related aspects.

Structure of Vietnam Economic Sector System (VSIC)

Vietnam’s economic sector system, specified in Decision No. 27/2018/QD-TTg, includes five levels of encryption. Each level represents a different level of detail, from general to specific:

• Level 1: Includes 21 main economic sectors, encoded with 1 digit (from 1 to 9).
• Level 2: Includes 88 industries, encoded with 2 digits.
• Level 3: Includes 242 sectors, encoded with 3 digits.
• Level 4: Includes 486 sectors, encoded with 4 digits.
• Level 5: Includes 734 sectors, encoded with 5 digits.

This system supports management, analysis and statistics of economic activities throughout the country. From small to large businesses, classifying business lines by industry code ensures transparency in reports and policy adjustments.

Enterprises must choose an industry code that is appropriate to their actual business activities. Selection bias can cause difficulties when working with state agencies. To look up industry codes, customers can use the guidance document of Decision No. 27/2018/QD-TTg or online tools provided by the Ministry of Planning and Investment.

New points in Decision 27/2018/QD-TTg

Decision No. 27/2018/QD-TTg replaces previous regulations, creating a foundation for more comprehensive coding of business lines. Notable changes include:

• Update new industries: Add economic industries suitable to the current development context, such as information technology, e-commerce and environmental services.
• Eliminate outdated occupations: Eliminate occupations that are no longer suitable or impractical in economic activities.
• More detailed classification: Increase the number of level 4 and level 5 codes to better reflect the diversity of business activities.

This update requires operating businesses to review their registered business codes. Businesses that have not updated may be refused certain legal procedures or face inspection risks.

In addition, the application of the new industry code system contributes to improving state management efficiency and supporting businesses to participate in the international market through standardized coding.

Instructions for looking up and using business codes

Properly looking up and using business codes is a legal requirement according to Decision 27/2018/QD-TTg. Below is the basic process that customers need to keep in mind:

Step 1: Lookup industry code: Use the online lookup tool on the Business Registration Portal or download Decision 27/2018/QD-TTg from an official source to conduct the lookup.

Step 2: Choose the appropriate industry code:

• Ensure the industry code accurately reflects the nature of actual business activities.
• For example, food businesses must choose the industry code of the “Food Processing Industry” group.

Step 3: Register or update industry code:

• Contact the Business Registration Office or do it online through the business registration system.
• The dossier includes a request to change the business registration content and related documents.

Note: Conditional business lines must ensure they meet specific conditions before registering or changing.

The significance of standardizing industry codes for businesses

Standardizing business codes not only helps businesses comply with legal regulations but also brings many practical benefits:

• Effective management: The industry code system helps the state monitor economic activities transparently, thereby providing appropriate support policies.
• Development support: Businesses with clear industry codes can easily access capital, preferential policies, or participate in public bidding.
• Responding to international markets: Standardizing industry codes helps businesses improve their competitiveness in transactions with international partners.

Enterprises that have not standardized industry codes will face difficulties in legal procedures and internal management. This is especially important for large-scale businesses or participating in global supply chains.

Consulting on looking up and registering business codes for businesses in Long Phan

Long Phan provides in-depth support services for looking up and registering business codes according to Decision No. 27/2018/QD-TTg. With a team of experienced experts, we provide the following services:

• Support looking up appropriate business lines according to Decision 27/2018/QD-TTg.
• Consulting on choosing the industry code according to the nature of business activities.
• Instructions for classifying occupations according to coding levels (level 1 to level 5).
• Look up business lines with specific conditions and requirements.
• Consulting on adding or adjusting industry codes to suit new activities.
• Instructions for implementing update procedures with the Business Registration Office.
• Draft and prepare business registration documents
• Representatives submit documents at the Business Registration Office or support implementation via the online portal.
• Monitor and update processing results from the business registration agency.

Standardizing business codes according to Decision 27/2018/QD-TTg is a responsibility and development opportunity for every business. Long Phan is ready to accompany customers in the process of looking up, registering and updating industry codes. Don’t let erroneous industry codes disrupt your business. Please call the hotline immediately 0906735386 for dedicated and professional support.