Grounds for establishment of a legal assistance program for small and medium enterprises in Vietnam

Grounds for establishment of a legal assistance program for small and medium enterprises in Vietnam
Lê Trương Quốc Đạt

What are the grounds for establishment of a legal assistance program for small and medium enterprises in Vietnam? - Huu Tinh (Can Tho)

Grounds for establishment of a legal assistance program for small and medium enterprises in Vietnam

Grounds for establishment of a legal assistance program for small and medium enterprises in Vietnam (Internet image) 

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

1. What is provision of legal assistance for small and medium enterprises?

According to Clause 1, Article 3 of Decree 55/2019/ND-CP, provision of legal assistance for small and medium enterprises (SMEs) means ministries, ministerial agencies and provincial governments’ acts of creating, managing, maintaining and updating law databases, establishing and implementing legal assistance programs with the aims of increasing SMEs’ knowledge and awareness of law, developing their habit of complying with law, minimizing legal risks and issues encountered by SMEs during their operation, and then improving the competitiveness of SMEs and effectiveness in law enforcement.

2. Grounds for establishment of a legal assistance program for SMEs in Vietnam

According to Clause 1, Article 10 of Decree 55/2019/ND-CP, grounds for establishment of a legal assistance program for SMEs:

- Demands for legal assistance for SMEs in each period of time and in each sector, field or area;

- Programs for formulation of laws and ordinances of the National Assembly and of the Standing Committee of National Assembly and plans for promulgation of legislative documents of the Government, the Prime Minister, ministries, ministerial agencies and provincial governments;

- Resources of the relevant ministry, ministerial agency or provincial government, and SMEs’ representative organization.

3. Contents of a legal assistance program for SMEs in Vietnam

According to Clause 2, Article 10 of Decree 55/2019/ND-CP, contents of a legal assistance program for SMEs include:

 Provision of information, including information relating to domestic law, foreign laws, international laws, legal risk warnings and the relevant ministry or provincial government’s policies for SMEs(if any);

- Improvement of legal knowledge, including legal knowledge improvement programs for SMEs, those for persons providing legal advice for SMEs, and those for the legal consultant network;

- Provision of legal advice, including talks, response to legal questions of SMEs and other legal consulting activities which must be conformable with law and suitable for demands of SMEs and resources available as prescribed in Point c Clause 1 of Article 10 of Decree 55/2019/ND-CP.

4. Regulations on implementation of legal assistance programs for SMEs in Vietnam

Regulations on implementation of legal assistance programs for SMEs according to Article 13 of Decree 55/2019/ND-CP are as follows:

- After a legal assistance program for SMEs has been approved by a regulatory authority, the relevant ministry, ministerial agency or provincial People’s Committee shall organize the implementation of the approved program within the ambit of its assigned functions and duties or assign providers of legal assistance for SMEs to implement that approved program.

The authority in charge of implementing the legal assistance program for SMEs shall develop and publish the plan for implementation thereof on its website and the legal assistance website for SMEs of the Ministry of Justice.

- Selection, conclusion of contract, evaluation of implementation results and termination of contract signed with the qualified provider of legal assistance for SMEs for implementing the approved legal assistance program for SMEs shall comply with the Law on bidding and relevant laws.

- Based on contents and resources of the legal assistance program for SMEs as prescribed in Clause 1 of Article 13 of Decree 55/2019/ND-CP as well as demands for legal assistance of participating SMEs, the representative organization of SMEs can suggest a legal assistance program for SMEs that it will take charge and contains contents prescribed in Clause 1 of Article 13 of Decree 55/2019/ND-CP. To be specific:

+ Based on contents and resources of the legal assistance program for SMEs as prescribed in Clause 1 of this Article, the relevant ministry, ministerial agency or provincial People’s Committee shall provide funding which is derived from the funding for implementing the legal assistance program for SMEs prescribed in Clause 1 of Article 13 of Decree 55/2019/ND-CP and shall not exceed 50% of the funding for implementing the legal assistance program for SMEs suggested by the representative organization of SMEs.

The remaining funding shall be covered by the representative organization of SMEs or the funding from private sector involvement, other authorities, organizations and SMEs;

+ Selection, conclusion of contract, evaluation of implementation results and termination of contract signed with the representative organization of SMEs for implementing the legal assistance program for SMEs as prescribed in Clause 2 of Article 13 of Decree 55/2019/ND-CP shall comply with the Law on bidding and relevant laws.

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