BE | Buổi 1+2+3: Introduction to

Business Economics
Teacher: Cao Thi Hong Vinh
Attendance 10%: randomly
Midterm 30%: exam
Final 60%: open book exam
Wednesday: 12h30’ check attendance. If lost attendance - ko đc tính
Xin nghỉ: email trước at least 1 ngày + evidence
Print book + slide out
Main textbook: Trefor, J. Business Economics and Managerial Decision Making
Requirement: Griff S vs, Economics for Business and Management
Buổi 7 (thứ 4) or 8 ktra giữa kỳ open book exam (bản cứng) - Ko trắc nghiệm,
câu tự luận phân tích + vận dụng 90’

Chapter 1: Introduction to Business

Economics
Principal agent problem: a conflict in priorities between the owner of an
asset and the person to whom control of the asset has been delegated.

Owners want the firms to get higher profit - higher dividends → highest profit
as possible. CEOs want higher salaries, bonuses - higher labor costs →
satisfied profit.
Managerial economics: Application of microeconomics theories and
quantitative methods → find the optimal solutions to managerial decision
making problems.

2. Structure
Objectives: optimal solutions for decisions + and methodology: fundamental
theories

BE | Buổi 1+2+3: Introduction to Business Economics 1

 1. So sánh: Types of companies: Unincorporated (No separate legal identity,
unlimited liability, and fewer formalities) vs Incorporated (Separate legal
identity, limited liability, and more formalities)

Legal Identity
Unincorporated: The business does not have a separate legal identity from
its owners. The most common forms are sole proprietorships and
partnerships. The owner(s) and the business are considered the same legal
entity, meaning the business cannot enter into contracts, sue, or be sued
separately from its owner(s).

Incorporated: The business becomes a separate legal entity from its

owners (shareholders). The company can own property, enter into
contracts, sue, and be sued in its own name. Common forms include
corporations (e.g., LLCs, C-Corps, S-Corps).

Liability
Unincorporated: Owners have unlimited liability, meaning they are
personally responsible for the business's debts and obligations. In the case
of financial troubles or lawsuits, personal assets (e.g., savings, homes) can
be at risk. → Trách nhiệm vô hạn

Incorporated: Owners/shareholders have limited liability. This means they

are only responsible for the company’s debts and obligations up to the
amount they invested. Their personal assets are protected, and only the
corporation’s assets are at risk. → Trách nhiệm hữu hạn

Formalities
Unincorporated: There are fewer formalities. For example, sole
proprietorships and partnerships generally do not have to file articles of
incorporation, hold board meetings, or issue shares. They also have simpler
taxation processes since the business income is typically reported on the
owner’s personal tax returns.

Incorporated: There are more formalities. Corporations must file articles of

incorporation, draft bylaws, hold regular board meetings, and keep detailed
records. They are also required to file separate tax returns. Depending on
the structure (e.g., LLC, S-Corp, or C-Corp), they may also be subject to
more complex tax rules and regulatory oversight.

BE | Buổi 1+2+3: Introduction to Business Economics 2

 (UK: sole trader + partnership vs limited + holding company?) → difference

2. Vietnam: law of enterprise? Different types of firms and enterprise

Legal Identity: Sole traders and partnerships are not separate legal entities,
while limited and holding companies are.

Liability: Sole traders and partnerships have unlimited liability, whereas

limited and holding companies offer limited liability.

Ownership: Sole traders are owned by one person, partnerships by two or

more individuals, and limited/holding companies are owned by
shareholders (and potentially other companies).

Taxation: Sole traders and partnerships pay income tax, while limited
companies pay corporation tax. Holding companies can benefit from tax
advantages related to managing subsidiary companies.

Formalities: Limited and holding companies have more regulatory and filing
requirements compared to sole traders and partnerships.

In short:

Sole Trader: Simple, individual business, unlimited liability.

Partnership: Shared ownership, unlimited liability.

Limited Company: Separate legal entity, limited liability, more formalities.

Holding Company: Owns subsidiaries, limited liability, can provide tax and
organizational benefits for group structures.

1. If I want to startup an enterprise in Vietnam: Where should i do → What kind

of procedures i should do? What kind of department should i go to register
for my firm? where/ when the registration is accepted? What kind of
document i receive from the authority?

Where Should You Start Your Business?

Choosing the location depends on your business type and target market. Most
foreign and domestic entrepreneurs choose key cities or industrial zones that
offer a business-friendly environment, good infrastructure, and proximity to
customers or resources. The most common locations for startups are:

Hanoi (Capital): Administrative and political center, large domestic market.

Ho Chi Minh City: Vietnam’s commercial and financial hub, with a strong
expat community.

BE | Buổi 1+2+3: Introduction to Business Economics 3

 Da Nang: Fast-growing city with increasing business potential.

Industrial Parks: If your business involves manufacturing or export, setting

up in an industrial zone may offer tax incentives and logistical advantages.

What Kind of Procedures Should You Follow?

The process for starting an enterprise in Vietnam can be divided into several
steps:

a. Choose a Business Structure

Limited Liability Company (LLC): The most common choice for small and
medium enterprises. It can be a single-member or multi-member LLC.

Joint-Stock Company (JSC): Suitable for larger businesses, especially

those planning to raise capital through the sale of shares.

Partnership: Usually limited to professional services like law firms or

consultancies.

Sole Proprietorship: Owned by one individual, simpler to set up but carries

unlimited liability.

b. Choose a Business Name

The name must be unique and cannot be identical or confusingly similar to

existing registered companies.

The name should be in Vietnamese or, if using foreign words, include a

Vietnamese equivalent.

You can check the availability of the name with the Department of Planning
and Investment (DPI).

c. Prepare Documents for Registration

You will need the following documents depending on your business structure:

Application for enterprise registration: A standard form obtained from the

Department of Planning and Investment.

Charter of the company: This outlines the internal rules and regulations.

List of members (for LLC) or shareholders (for JSC): Required for multi-
member LLCs or JSCs.

Valid ID of the owner/members: For individuals, a notarized copy of the

owner’s or members’ passports or ID cards.

BE | Buổi 1+2+3: Introduction to Business Economics 4

 Proof of the registered address: Legal documents showing that the
business has a legitimate address.

Investment Registration Certificate (for foreign investors): If you are a

foreigner or foreign-owned entity, you must obtain this first.

Where Should You Register?

The key authority for business registration in Vietnam is the Department of
Planning and Investment (DPI) in the province or city where you intend to set
up your business.
For example:

In Hanoi or Ho Chi Minh City, you would submit your registration to the
respective DPI.

Foreign-invested enterprises need to apply for an Investment Registration

Certificate (IRC) first, and then register the business with the DPI.

Steps for Registration:

1. Submit your registration documents at the Business Registration Office of

the DPI.

2. For online registration, you can use the National Business Registration
Portal (https://dangkykinhdoanh.gov.vn).

3. Pay the applicable registration fees.

When Is the Registration Accepted?

The DPI typically processes the registration within 3 to 5 working days after
receiving the complete documents. If your application is approved, you will
receive your business registration certificate.

What Documents Do You Receive from the Authority?

Once your application is approved, the DPI will issue the following documents:

Enterprise Registration Certificate (ERC): This is the official certificate

proving that your company is legally registered in Vietnam.

Tax Code/Business Code: This code is included in the ERC and will also
serve as your tax identification number.

Seal Registration Certificate: After receiving the ERC, your business needs
to make an official company seal. Once made, you must notify the DPI to

BE | Buổi 1+2+3: Introduction to Business Economics 5

 receive a Seal Registration Certificate.

Additional Steps After Registration:

After receiving your Enterprise Registration Certificate, the next steps are:

Open a Bank Account: Open a company bank account in Vietnam, using

your ERC and company seal.

Register for Taxes: Within 10 days of receiving your ERC, register your
company for taxes with the Tax Department. You will need to submit the
business and accounting information.

Business License Tax: Pay your business license tax within 30 days of
receiving your ERC.

Social Insurance Registration: If you hire employees, register for social

insurance with the local Social Insurance Department.

Key Departments Involved:

1. Department of Planning and Investment (DPI): Handles business
registration and issues the Enterprise Registration Certificate.

2. Tax Department: Manages tax registration and compliance.

3. Social Insurance Department: Handles employee insurance registration.

4. Ministry of Labour, Invalids and Social Affairs (MOLISA): If employing

foreign workers, this ministry issues work permits.

Câu 1: describe the context of establishment and development of managerial

control firm?

Cau 2: Clarify the differences btw two types of enterprise: Ownership vs

Management control?
Cau 3: Which type of firms in ur opinion is more popular in VN?

BE | Buổi 1+2+3: Introduction to Business Economics 6

 Hóa đơn ghi vào năm nào → quyết toán vào năm đó → căn chỉnh lợi nhuận -
doanh thu lợi nhuận

Hóa đơn điện tử: hóa đơn xuất trong ngày, hđong trong ngày hnay thì phải lấy
luôn trong hnay
Bill # Invoice. Dưới 200k (số tiên nhỏ) ko phải lấy hóa đơn - tách bill ra từng bill
nhỏ thì cần phải hỏi có chấp nhận ko
Department: sales vs accounting hay xung khắc vs nhau. Sales thích thủ tục
nhanh, kế toán cần chắc chắn cẩn trọng. Sales có thể cho khách nợ nma kế
toán thì khum

2.3. Ownership structure

Monistic:

Dualistic: employees have many welfare → hard to apply

Pluralistic:

tir leej sowr huu cua cac co dong la bao nhieu% (owner control hay manager
control) → insurance\

1. tỷ lệ sở hữu của mã ckhoan → doanh nghiệp cao nhất thuộc về ai, bnhieu %

2. tổng thể theo ngành đó, mã ckhoan lớn trong ngành đó thường là owner
control hay manager control

Corporate governance

BE | Buổi 1+2+3: Introduction to Business Economics 7

 Direct and control: cho cả tương lai, k phải chỉ riêng hđ hằng ngày

BE | Buổi 1+2+3: Introduction to Business Economics 8