Criteria for identification of small and medium enterprises in Vietnam

Criteria for identification of small and medium enterprises in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Criteria for identification of small and medium enterprises in Vietnam

Criteria for identification of small and medium enterprises (SMEs) according to Article 5 of Decree 80/2021/ND-CP are 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 (1)

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 (1).

(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 (1) and (2).

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 (1) and (2).

2. Instruction on identification and declaration of SMEs in Vietnam

Instruction on identification and declaration of SMEs in Vietnam according to Article 10 of Decree 80/2021/ND-CP as follows:

- Each SME shall complete the declaration form provided in the Appendix hereof, specify whether it is a micro-enterprise, small enterprise or medium enterprise, and submit the form to the assisting authority. SMEs shall be responsible for their declaration.

- In case an enterprise is found to have declared its scale incorrectly, it shall revise the declaration before assistance is provided.

- In case an enterprise deliberately declares its scale incorrectly for the purpose of receiving assistance, it shall take legal responsibility and return the funds provided as assistance.

- Assisting organizations shall compare information about the enterprises on the National Enterprise Registration Portal to verity their eligibility for assistance.

3. Principles for provision of assistance for SMEs in Vietnam

Principles for provision of assistance for SMEs according to Article 5 of the Law on providing assistance for small and medium-sized enterprises 2017 are as follows:

- Provision of assistance for SMEs shall comply with market rules and international treaties to which the Socialist Republic of Vietnam is a signatory.

- Contents, subjects, procedures, resources, levels of assistance and results of assistance for SMEs shall be transparent.

- The State shall assist SMEs with certain focuses for a limited period of time and in accordance with objectives of the assistance and its ability to balance resources.

- The provision of assistance for SMEs using resources provided by non-state organizations and individuals shall comply with their own regulations and regulations of law.

- In the cases where an SME is concurrently entitled to more than one level of the same form of assistance in accordance with regulations of this Law and other relevant regulations of law, it will be entitled to most favorable level.

If more than one SME satisfy the conditions for the assistance in accordance with regulations of this Law, the women-owned SME and the SME using more women employees will be given priority.

- An SME will receive the assistance if it satisfies fully regulations of the Law on providing assistance for small and medium-sized enterprises 2017 and other relevant regulations of Law.

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