Supporting small and medium enterprises in Vietnam (Ho Chi Minh City)

According to the Law on supporting small and medium enterprises No.04/2017/QH14 was officially approved by the National Assembly (the “Law”), the small and medium enterprises (“SME”) include micro-enterprises, small enterprises and medium enterprises having the number of employees participating in social insurance not exceed Protected content and meeting of one or two requirements (i) total capital does not exceed VND Protected content or (ii) total revenue of last year did not exceed VND Protected content .

Support for the SME is regulated as below:

• Support to approach credit, thereby, the Government decides to regulate support policy for credit institutions to increase outstanding loans for the SME encouraging the credit institutions to loan money to the SME;

• Credit Guarantee Fund, thereby, the Provincial People's Committees establish Credit Guarantee Fund for the SME without using budget, operating for non-profit target and issuing credit guarantee for the SME;

• Support on tax, accounting, thereby, during the time as regulated, the SME shall enjoy a corporate income tax rate which is lower than normal tax rate applied on enterprises. The micro-enterprises shall enjoy simple tax administrative procedures and simple accounting system under provisions of laws on tax and accounting;

• Support on providing information, consultation and legal advice, thereby, the information about plan, program, project, activity for supporting the SME, business guide as well as information about credit, market, product, technology, enterprise development shall be published on the national information portal supporting the SME, websites of Ministries, ministerial-level agencies, Provincial People's Committees, social organizations, socio-pro organizations;

• Support to develop human resource, thereby, the SME shall enjoy exemption and reduction in costs of training courses on start-ups, corporate management, vocational training for employees using the state budget.

• Support on providing manufacturing site, technology; providing development, technical facilities, general working area; support on expanding the market.

In addition, the Law also prescribes other issues on supporting the SME such as support the SME on (i) converting from household business; (ii) starting-up creatively; (iii) joining the inter-enterprises cluster, value chain, etc.

The Law shall take effect from 1 January Protected content shall create an important legal basis for implementing support activities for the SME in the future.

We hope that the above is informative and useful. Should you have any relevant question, please reach me via my email: Protected content . Thank you.