Business is an indispensable activity of the society at any given time. Because no society can develop without taking place in business and trade. So what is business? For those who own a business or have a business intention, the knowledge in the article below can help you expand your business model. So, do not miss it.
What is business?
Business is a combination of activities that are very diversified such as investing, producing, buying, selling, and providing services, conducted independently by business entities such as individuals, enterprises and units, often aiming at profit-generating destination. Around the world, many countries use the term “commerce” (business / trade) in a broad sense to refer to the production, purchase and sale of goods and services, and to distinguish it from the term “trade”. to refer to only pure goods trading.
So in Vietnam, why. The term business is defined in the Company Law and the Private Enterprise Law 1990. Business activity is manifested with the following signs:
1) Activities must be professional, that is, they are conducted professionally, on a regular basis, on an ongoing basis and they provide the main source of income for the person doing them;
2) Operation must be performed independently. Entities to conduct business on their behalf. They decide on all relevant issues and are responsible for their own activities;
3) Activity conducted by actors for the purpose of making profits regularly.
According to the provisions of Vietnamese law, in order to conduct business, the subjects must register their business at competent state agencies.
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Popular types of business today
1. Joint venture enterprise
This is a type of company enterprise established by two or more parties cooperating in Vietnam on the basis of a joint venture contract or an agreement between the Vietnamese Government and a foreign government, in order to carry out business activities in various fields. sectors of the national economy of Vietnam. A joint venture enterprise is organized in the form of a limited liability company, has legal status and is responsible for all debts with its assets on the basis of capital contributed to the joint venture of the parties.
2. Enterprises with 100% foreign investment capital
Type of business with 100% foreign investment capital. In essence, this is a limited liability company, with limited liability for debts from a business operation within the assets of a business established by a foreign individual.
3. One member limited liability company
One member limited liability company is a special form of limited liability company. According to the provisions of Vietnamese law, one member limited liability company The enterprise is owned by an organization, the owner is responsible for the debts and other property obligations of the enterprise to the extent of the capital contributed to the enterprise. A joint stock company is entitled to issue securities in accordance with the law.
A partnership is an enterprise with no legal status, at least two general partners, In addition to members of a partnership, there may be capital-contributing members. Capital contributors are only responsible for the company’s debts to the extent of the capital contributed to the company. partnerships have legal status, members have the right to manage the company and conduct business activities on behalf of the company, jointly responsible for the responsibilities and obligations of the company. Capital contributing members are divided profits according to the proportion of the company’s charter, general partners have equal interests when deciding on company management matters.
5. Private enterprise
A private enterprise is an enterprise established and owned by an individual. A private enterprise is an economic organization that is registered to do business in accordance with regulations and to carry out business activities. A private enterprise is owned by an individual with assets and a transaction office. The owner of a private enterprise is the legal representative and has full authority to decide on all business activities of the company. Therefore, each individual will have the opportunity to set up his own business but must ensure that only one private enterprise is established.
According to Article 1 of the Law on Cooperatives in 2003, this is a type of collective organization established by individuals, households and legal entities wishing to contribute capital to construction. Everyone voluntarily creates cooperatives based on common interests and needs, helps each member, increases efficiency in production, business and services.
7. State-owned enterprises
State enterprise means an economic organization with capital invested by the State, established and managed by the State, conducting business activities or public-utility activities aimed at the realization of socio-economic objectives assigned by the State.
Forms of state-owned enterprises include state companies, state-owned joint stock companies, single-member limited liability companies, and limited liability companies with two or more members.
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Popular business fields today
1. Agriculture and mining
For this industry, the main activities are related to the production of agricultural raw materials and minerals. The main raw materials are from activities of animal husbandry, animals, logging, minerals, agricultural crops.
Financial services industry
Financial services include banks, finance companies, insurance companies, etc. that collect profits through investment and capital management.
Currently, the financial services industry is increasingly developing in the context of a strongly developed market economy. A series of financial and banking services were born with the principle of providing benefits to both users and providers. This shows the future of this field.
2. Information industry
This is an industry in which business companies will sell intellectual property rights for a profit. Intellectual property rights are the right that the owner of such products, upon registration, can resell, or assign, for a period, the registered products to ensure that the intellectual product is not tampered with. arbitrarily.
3. Transport business
Trucking business units move goods from one place to another, thereby making a profit. Transport business can operate in many forms and through many different types of vehicles. Depending on the needs of customers to use to have changes.
4. Business service industry
This is one of the three main types of businesses that are thriving today. This business does not create tangible goods, but provides intangible services and goods, profits from labor and customer experience. This is an area that is worth investing in because there are a variety of activities for you to choose from.
Some examples: hotel business – restaurant; Business Travel; services for health; real estate consulting; operation, electronic repair, legal advice; …
5. Real estate business
This business helps you to profit from the sale or lease of properties such as land, houses and other buildings.
Public service business
This sector must include industries such as electricity, waste treatment, domestic water, which are often under the management of the government.
6. Retail and distribution
Acting as an intermediary between producers and customers, earning profits from the provision of trading and trading services.
Retail business is always an effective sales channel to help businesses increase sales rapidly. Thanks to the retail business, goods and products are circulated from the place of production to the consumer more quickly and efficiently.
Currently, most companies, businesses and groups are building and investing a lot in retail channels to promote their brands to consumers across the country.
The industry’s characteristic is to process raw materials into finished products and then sell them for profit. These businesses play a very important role in supplying goods in consumer markets. Especially the essential goods and products for the daily use needs of consumers.
This type is often operated at a high level of specialization to meet a large number of goods, to ensure that the needs of the market are always fully met, maintaining the balance of supply and demand in the market.