FDI firms obtained huge profits but paid lowest taxes
Foreign direct investment (FDI) enterprises achieved the highest profit growth amongst the economic sectors, but contributed $11.4 billion only to the State budget, equaling to 28 per cent.
According to the latest report by the General Statistics Office, FDI enterprises achieved the highest profit growth among the economic sectors, generating VND384.1 trillion (nearly $16.5 billion) in pre-tax profits in 2017, an increase of 17.6 per cent compared to 2016.
This amount accounted for 43.8 per cent of the total profits earned by businesses across all sectors in 2017.
However, they paid the lowest taxes to the state budget at nearly VND266 trillion ($11.4 billion) in 2017, amounting to only 27.9 per cent of the total business sector contribution, a six-per cent increase compared to 2016.
The statistics indicated that total pre-tax profits of the business sector in 2017 reached VND876.7 trillion ($37.6 billion), increasing 23.1 per cent compared to 2016.
On average, the profit of the whole business sector increased by 13.7 per cent a year from 2010 to 2017.
Private enterprises contributed the most to the state budget at $17.5 billion, representing nearly 43 per cent of the total business sector contribution.
Meanwhile, non-state enterprises, comprising the largest number of companies and employees, reported the lowest pre-tax profits of VND291.6 trillion ($12.5 billion) in 2017, amounting to 33.3 per cent of profits earned by all businesses, marking a 55 per cent rise year on year.
However, non-state enterprises paid the highest taxes to the state budget, at VND407.6 trillion ($17.5 billion), representing 42.7 per cent of the total business sector contribution, an increase of 22 per cent compared to 2016.
In 2017, the state owned enterprises reported a pre-tax profit of VND200.9 trillion ($8.62 billion), representing 22.9 per cent of profits earned by all businesses, an increase of 1.8 per cent compared to the previous year and an average increase of 8.3 per cent a year in the 2010-16 period.
The state-owned sector in 2017 contributed VND280.5 trillion (over $12 billion) to the state budget, accounting to 29.4 per cent of the total business sector contribution, increasing 1. 3 per cent compared to 2016.
On average, the contribution to the state budget of this sector increased by 9.1 per cent a year from 2010 to 2017.