Vietnam approves SME support law
More than 83 per cent of members in Vietnam’s National Assembly yesterday voted to approve a Law on Support for small and medium-sized enterprises (SMEs).
The support will include access to credit, tax incentives, production space, technology application and transfer, market expansion, provision of information, consultancy and legal aid, and personnel development.
The law sets out SME principles, contents and resources, as well as the responsibilities of related agencies, organisations and individuals.
It also covers micro-enterprises and operations with fewer than 200 salaried employees. To be covered, they must show total investment capital not exceeding 100 billion dong (Bt149 million) or total revenue from the previous year not exceeding 300 billion dong.
The law requires that support provided respects market rules and is in line with international treaties to which Vietnam is a signatory. The support given must be transparent in terms of content.
The law will take effect next January 1.
SMEs account for around 97 per cent of the firms in Vietnam.