What are regulations on selection of Small and Medium Enterprises (SMEs) for participation in production, manufacturing value chain in Vietnam?

What are regulations on selection of Small and Medium Enterprises (SMEs) for participation in production, manufacturing value chain in Vietnam?

Pursuant to Article 17 of the Circular 06/2022/TT-BKHĐT stipulating selection of SMEs for participation in production, manufacturing value chain in Vietnam as follows:

1. Forms of participation of a SME in value chain according to Clause 2 Article 24 of Decree No. 80/2021/ND-CP, including:

a) The SME is a chain leading enterprise established and operating as per Vietnam’s laws.

b) The SME is executing the contract for product and service purchase, sale or cooperation with chain leading enterprises.

c) The SME is considered a prospect supplier for chain leading enterprises by chain leading enterprises or agencies and organizations providing assistance for SMEs.

Agencies and organizations providing assistance for SMEs shall use prospect SME assessment tool publicized by Ministry of Planning and Investment or refer to the list of prospect SMEs uploaded on the Web portal to choose SMEs.

2. Agencies and organizations providing assistance for SMEs shall select SMEs for participation in value chain according to Clause 1 of this Article based on:

a) For Point a Clause 1 of this Article: documents verifying the eligibility of SMEs.

b) For Point b Clause 1 of this Article: at least 1 contract for product sale or purchase or cooperation with chain leading enterprises.

c) For Point c Clause 1 of this Article: confirmation of chain leading enterprises.

What are regulations on assistance for SMEs' participation in industrial cluster, production and processing value chains in Vietnam?

Pursuant to Article 18 of the Circular 06/2022/TT-BKHĐT stipulating assistance for SMEs' participation in industrial cluster, production and processing value chains in Vietnam as follows:

SMEs participating in industrial clusters and value chains shall receive assistance in accordance with Article 25 of Decree No. 80/2021/ND-CP. Agencies and organizations providing support for SMEs shall provide assistance in accordance with Article 4 and Article 5 of this Circular and the following regulations:

1. Assist training at enterprises according to Point a Clause 1 Article 25 of Decree No. 80/2021/ND-CP: conform to Clause 4 Article 12 hereof.

2. Assist learners of SMEs to participate in training courses in Vietnam and foreign countries according to Point b Clause 1 Article 25 of Decree No. 80/2021/ND-CP, including: tuition fee; materials; meals; accommodations; traveling (including plane tickets).

Details of training courses shall conform to Section 3 Appendix 3.1 hereof.

3. Assist SMEs to maintain accounts on e-commerce platforms according to Point d Clause 3 Article 25 of Decree No. 80/2021/ND-CP: conform to Clause 2 Article 15 hereof.

What are regulations on development, consolidation, and assignment of plans and state budget estimates for SME assistance in Vietnam?

Pursuant to Article 19 of the Circular 06/2022/TT-BKHĐT stipulating development, consolidation, and assignment of plans and state budget estimates for SME assistance in Vietnam as follows:

1. Ministry of Planning and Investment shall

a) Guide ministries, ministerial agencies, Governmental agencies, and local governments to develop plans and central government budget estimates for SME assistance (using form under Appendix 4 hereof); consolidate SME assistance demands of ministries, ministerial agencies, Governmental agencies, and local governments where budget is not adequate; request Ministry of Finance to propose plans and estimates of central government budget for SME assistance of the planning year.

b) Develop solutions for assigning SME assistance tasks utilizing central government budget to ministries, ministerial agencies, Governmental agencies, and local governments which are not able to balance the budget based on total central government budget estimates for SME assistance; request Ministry of Finance to report to competent authorities in order to allocate budget estimates.

c) Notify ministries, ministerial agencies, Governmental agencies, and local governments which are unable to balance the budget about SME assistance tasks utilizing central government budget.

d) Take charge and cooperate with relevant authorities in organizing assessment of SME assistance; consolidate and report to the Government, Prime Minister.

2. Ministries, ministerial agencies, and governmental agencies shall

a) Develop plans and estimates of central government budget for SME assistance in the planning year and submit to Ministry of Planning and Investment; consolidate in estimates of ministries, ministerial agencies, and local governments.

b) Develop solutions for assigning SME assistance tasks utilizing central government budget for affiliated agencies and organizations providing assistance for SME; copy and send to Ministry of Planning and Investment for cooperation.

c) Organize implementation of SME assistance adequately; inspect, assess, and be responsible for implementation of plans for SME assistance under their management; submit reports on SME assistance results to Ministry of Planning and Investment.

3. Provincial People’s Committees

a) Assign Departments of Planning and Investment to:

- Develop plans and estimates for central government budget (for provinces that have not been able to balanced the budget) and local government budget for SME assistance; report to provincial People’s Committees and Ministry of Planning and Investment; send to Departments of Finance for consolidation in budget estimates for the provinces;

- Develop solutions for assigning SME assistance tasks utilizing central government budget (for provinces that have not been able to balanced the budget) and local government budget (on the basis of local government budget expenditure estimates) to agencies and organizations providing assistance for SMEs in provinces and request provincial People’s Committees to decide; send to Ministry of Planning and Investment.

b) Implement tasks under Point c Clause 2 of this Article.

Best regards!