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VER assists all countries to provide the statistical base for planning, development and use of human resources as well as for projecting economic and social development, and providing a constant measurement of progress on the economy of the country. This study focused on challenges and prospects of VECS, specifically by describing the performance, examining the extent of focus given, identifying challenges and determining the prospects of VECS. Descriptive research type was used and the sampling techniques to select sample Weredas and Qetenas were multi stage cluster sampling and simple random sampling techniques wherein 138 respondents in the Sub-City were selected. Purposive sampling was used to select officials. Empirical data was collected using a questionnaire from 120 respondents, interviews from 10 interviewees, focus group discussion held with 8 officials, and observation. The study revealed that activities and services which have been given by Gulelle sub City VECS Agency are still weak due to data management and use outdated technologies.