Vietnam: 04 sources of funding for assisting small and medium-sized enterprises from 2018

According to Article 6 of the Law on provision of assistance for small and medium-sized enterprises 2017 of Vietnam, 04 sources of funding for assisting small and medium-sized enterprises (SMEs) include:

(1) Loans subsidized and guaranteed by the State;

(2) Funding provided by the state budget;

(3) Sources of funding from remission of taxes, fees, land rental, land levy and other financial obligations in accordance with regulations of law;

(4) Legal sources of capital provided by domestic and foreign organizations and individuals.

Note: Sources of funding for assisting SMEs including loans subsidized and guaranteed by the State, funding provided by the state budget; sources of funding from remission of taxes, fees, land rental, land levy and other financial obligations in accordance with regulations of law shall be estimated, verified, approved and stated in accordance with regulations of law.

Besides, this Law also specifies prohibited actions related to provision of assistance for SMEs as follows:

- Failure to provide the assistance for SMEs in accordance with principles, subjects, competence, contents and procedures prescribed in regulations of law.

- Abuse of positions and power to violate regulations of law on the assistance for SMEs.

- Discriminatory actions, unnecessary delay, obstructing or harassing SMEs and organizations and assistance for SMEs.

- Deliberate provision of incorrect information related to the provision of assistance for SMEs.

- Failure to use the resources for intended purposes.

View more details at the Law on provision of assistance for small and medium-sized enterprises 2017 of Vietnam, effective from January 01, 2018.

Ty Na

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