What are principles of assistance for Small and Medium Enterprises (SMEs) in Vietnam?

What are principles of assistance for Small and Medium Enterprises (SMEs) in Vietnam?

Pursuant to Article 4 of the Decree 80/2021/NĐ-CP stipulating principles of assistance for SMEs in Vietnam as follows:

1. On the basis of available resources and order of priority in each period, assisting organizations shall decide the quantity of SMEs eligible for assistance following these principles:

a) First come, first served;

b) Women-owned SMEs, SMEs with high female employments and SMEs that are social enterprises shall be given priority as prescribed by law.

2. In case an SME satisfies conditions for different levels of assistance specified in this Decree and relevant regulations of law, it may choose the most favorable assistance.

3. In addition to assistance provided separately for micro-enterprises and SMEs specified in this Decree, general assistance for SMEs shall also be provided for micro-enterprises and SMEs that satisfy the conditions specified in this Decree.

4. SMEs that are converted from household businesses, startups, SMEs participating in industry clusters, value chains shall be eligible for the assistance specified in Chapter IV and Chapter III of this Decree if they are not repeated.

5. On the basis of their functions, duties and capacity, assisting organizations shall directly provide assistance or cooperate with capable organizations and individuals in providing assistance for eligible SMEs.

What are criteria for identification of SMEs in Vietnam?

Pursuant to Article 5 of the Decree 80/2021/NĐ-CP stipulating criteria for identification of SMEs in Vietnam as follows:

1. Any micro-enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 10 people, total revenue in the year not exceeding 3 billion VND or total capital of the year not exceeding 3 billion VND.

Any micro-enterprise in the field of commerce and services that that has an average annual number of employees who participate in social insurance not exceeding 10 people, total revenue in the year not exceeding 10 billion VND or total capital of the year not exceeding 3 billion VND.

2. Any small enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 100 people, total revenue in the year not exceeding 50 billion VND or total capital of the year not exceeding 20 billion VND, except micro-enterprises mentioned in Clause 1 of this Article.

Any small enterprises in the field of commerce and service that has an average annual number of employees who participate in social insurance not exceeding 50 people, total revenue in the year not exceeding 100 billion VND or total capital of the year not exceeding 30 billion VND, except micro-enterprises mentioned in Clause 1 of this Article.

3. Any medium enterprise in the field of agriculture, forestry, aquaculture; industry and construction that has an average annual number of employees who participate in social insurance not exceeding 200 people, total revenue in the year not exceeding 200 billion VND or total capital of the year not exceeding 100 billion VND, except micro-enterprises and small enterprises mentioned in Clause 1 and Clause 2 of this Article.

Any medium enterprises in the field of commerce and service that has an average annual number of employees who participate in social insurance not exceeding 100 people, total revenue in the year not exceeding 300 billion VND or total capital of the year not exceeding 100 billion VND, except micro-enterprises and small enterprises mentioned in Clause 1 and Clause 2 of this Article.

How to determine fields of operation of SMEs in Vietnam?

Pursuant to Article 6 of the Decree 80/2021/NĐ-CP stipulating determination of fields of operation of SMEs in Vietnam as follows:

The fields of operation of SMEs shall be determined according to their primary business lines as registered with business registration authorities.

How to determine average annual number of employees who participate in social insurance of SMEs in Vietnam?

Pursuant to Article 7 of the Decree 80/2021/NĐ-CP stipulating determination of average annual number of employees who participate in social insurance of SMEs in Vietnam as follows:

1. The number of employees who participate in social insurance means all the employees who get paid by of the enterprise and participate in social insurance in accordance with social insurance laws.

2. The average annual number of employees who participate in social insurance equals (=) the total number of employees who participate in social insurance of all the months in the preceding years divided by (:) 12 months.

The number of employees who participate in social insurance of a month shall be determined at the end of the month according to documents about social insurance premium payment of that month that are submitted by the enterprise to the social insurance authority.

3. In case an enterprise has been operating for less than 01 year, the average annual number of employees who participate in social insurance shall equal (=) the total number of employees who participate in social insurance of the operating months by (:) the number of months.

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