Situation of Support Implementation for Small and Medium-sized Enterprises in 2023 in Vietnam

Situation of Support Implementation for Small and Medium-sized Enterprises in 2023 in Vietnam​​ (Image from the internet)

On June 7, 2024, the Office of the Government of Vietnam issued Official Dispatch 3962/VPCP-DMDN on the situation of implementation of the Law on providing assistance for small and medium-sized enterprises (SME) and Decree 80/2021/ND-CP in 2023.

Situation of SME Support Implementation in 2023 in Vietnam

Considering the proposal of the Ministry of Planning and Investment of Vietnam (Submission No. 11068/TTr-BKHDT dated December 29, 2023) on the report of the status of implementation of the Law on providing assistance for small and medium-sized enterprises and Decree 80/2021/ND-CP of the Government of Vietnam in 2023, the Deputy Prime Minister has the following opinions:

(1) Ministries, sectors, localities:

- Ministries need to continue accelerating the recognition of consultants in their managed sectors and fields to expand the network of consultants supporting SMEs; share the database of recognized consultants with localities (Departments of Planning and Investment, specialized departments) to facilitate the support of SMEs in their areas; train and enhance the professional skills of consultants in the network. Ministries and sectors should actively cooperate with the Ministry of Justice to expand the network of legal consultants providing legal support to SMEs as stipulated in Decree 55/2019/ND-CP dated June 14, 2019, of the Government of Vietnam.

- Continue to effectively promote focused and targeted SME support activities, using state budget funds efficiently. Support SMEs in recovering production and business through the application of digital technology platforms to transform business models, assisting sales on e-commerce platforms; support consulting for technology innovation; develop human resources for SMEs (prioritizing online and in-house training at enterprises); support SMEs in participating in industry clusters, value chains, especially in key export sectors (textiles, footwear, electronics, manufacturing); sectors with advantages and potential (food processing, agricultural product processing). Prepare both hard (production site, electricity, water...) and soft infrastructure (preferential policies, human resource training) to welcome businesses in the semiconductor and new energy (hydrogen) industries.

- Continue to strengthen and innovate the communication work on SME support policies to attract the participation of SMEs with needs to access and benefit from the policies.

- Localities should prioritize resource allocation (capital, production sites, technology...) to effectively implement the approved SME support content, Programs, Plans, and Schemes as stipulated by the Law on providing assistance for small and medium-sized enterprises; actively integrate SME support activities into the implementation of other professional and specialized activities.

- Enhance awareness, provide consulting, and equip Vietnamese enterprises with knowledge and capabilities to meet the requirements of partners, markets, and legal regulations on sustainable business domestically and internationally.

- Vigorous implementation of Resolution 66/NQ-CP dated May 9, 2024, of the Government of Vietnam issuing the Action Program of the Government of Vietnam to implement Resolution 41-NQ/TW dated October 10, 2023, of the Politburo on building and promoting the role of the Vietnamese entrepreneur team in the new era.

(2) Ministry of Planning and Investment:

- Research, cooperate with ministries, and agencies to unify the solution to handle obstacles in guiding interest rate support according to Decree 80/2021/ND-CP of the Government of Vietnam as per the opinion of Deputy Prime Minister Le Minh Khai in dispatch 2651/VPCP-DMDN dated April 18, 2023, from the Office of the Government of Vietnam.

- Promote the implementation of programs and solutions to support enterprises in innovation, digital transformation, especially inclusive digital transformation, and "dual transformation" (digital transformation associated with green and inclusive transformation). Urgently organize and implement the Program to support private sector enterprises in sustainable business development for the period 2022-2025 to promote the development of sustainable and inclusive business models, aiming at transitioning the economic structure towards green and sustainable.

- Promote lending activities of the Small and Medium Enterprise Development Fund in accordance with the provisions of Decrees: 39/2019/ND-CP dated May 10, 2019, and 45/2024/ND-CP dated April 26, 2024, of the Government of Vietnam.

- Promote activities to support the incubation of innovative start-up businesses, accelerate the organization of support activities, and form an innovation ecosystem at the National Innovation Center, Hoa Lac facility.

(3) State Bank of Vietnam:

- Continue to direct credit institutions to channel credit capital into priority areas, including SMEs; diversify products, and apply science and technology to develop new products; review and simplify credit granting processes and procedures to facilitate access to capital, meeting the capital needs of micro and small enterprises.

- Implement solutions within the functions and tasks of the State Bank of Vietnam to attract green capital sources supporting SMEs in implementing projects under the green classification list.

(4) Ministry of Labor - War Invalids and Social Affairs:

In 2024, study and amend Circular 02/2015/TT-BLDTBXH dated January 12, 2015, of the Ministry of Labor - War Invalids and Social Affairs, stipulating the wage for domestic consultants as the basis for estimating consultancy service packages applying the time-based contract form using state funds, ensuring consulting support rates are appropriate to market reality.

(5) Ministry of Industry and Trade:

- Continue to implement effective solutions to support enterprises in promoting e-commerce, trade promotion, export market diversification, leveraging signed FTAs; seize export opportunities of individual markets and goods; enhance the quality of supply-demand forecasting of sectors, products, and markets to promptly support information for the production and business activities of enterprises; expedite the speed of import and export goods clearance at border gates; effectively exploit the domestic market.

- Develop a national overall strategy for the development of industries as well as brand development schemes for products with strengths and high competitive advantages of Vietnam; establish regional and international standard exhibition centers in major economic centers such as Ho Chi Minh City (currently small in scale), Ha Noi, Da Nang.

For details, refer to Official Dispatch 3962/VPCP-DMDN dated June 17, 2024.

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