Ensuring effective support for SMEs

It’s an important law for national economic development, particularly following the Party’s resolution on developing the private sector. Today VOV summarizes opinions of the National Assembly deputies on the bill.

Vietnam has 612,000 operating businesses, most of which are SMEs. The bill contains incentives for leasing space, common incentives for businesses, and specific policies for SMEs and private traders.

Diversifying support models

SMEs are in need of incentives for resource access, production space, and taxes. Appropriate support will help them develop on the right track and contribute substantially to national economic growth. Many deputies said the bill should include criteria for support models suited to each type of SME.

Mai Thi Anh Tuyet, a deputy for An Giang province, said “Capital is a key element in production and trade but obtaining credit is a big challenge for SMEs. The bill should specify regulations that help them get the capital they need. Transparency is needed in business credit ratings to satisfy the banks’ requirements while protecting SMEs’ rights.”

The deputies also mentioned tax incentives. Mai Hong Hai, a deputy of Hai Phong city, said “Regulations on business income tax should be issued systematically to ensure comprehensive enforcement from next year, rather than waiting for the revision of related laws. An impact assessment report shows that 55% of SMEs are seeing profits. If we reduce business income tax 3% to 5%, state revenues will not be affected much now, but it will help businesses generate more jobs and that will boost state revenues in the future.”

Production space is essential as cumbersome procedures for leasing land have restricted businesses’ opportunities.

Tran Van Lam, a deputy of Bac Giang province, said “Article 11 of the bill is about production space, but it focuses on land for industrial zones. SMEs working in trade and services are also having trouble obtaining land. Article 12 specifies regulations for establishing common working space. I suggest that the bill allow local authorities to reserve land and create policies to build commercial centers for lease to SMEs at reasonable prices.”

The deputies also suggested market expansion policies to help businesses form value chains so SMEs can provide support services for big businesses.

To support startups

Startup incentives are needed now to produce breakthrough products for Vietnam’s economy. Deputy Mai Thi Anh Tuyet said “To promote effective policies, and avoid loopholes and abuses by SMEs, startups, and private businesses, I propose by-laws that specify the content, scale, and characteristics of startups.”

Minister of Planning and Investment Nguyen Chi Dung said Vietnam has 3 funds to support SMEs, one of which is new in Vietnam because it’s for innovative startups. “Funding is important to encourage innovative ideas based on advanced technology to achieve faster growth. The fund will create more resource channels for SMEs and help them improve their competitiveness.”