Small and medium-sized enterprises (SMEs) play an important role in Vietnam’s economy as accounting for the majority.of enterprises in the Vietnamese market.are mostly.established by Vietnamese investors. In order to encourage investors to participate in production and business .activities for economic development, the Government has issued preferential.legal policies, supporting these enterprises to have the opportunity to develop and stand firmly. SUPPORTING FOR SMALL AND MEDIUM-SIZED ENTERPRISES
With the experience of accompanying many enterprises in legal advice, we have a team.of good lawyers with many years of experience in the field of consulting, Lawplus would like.to send to customers the preferential policies of the state for small and medium-sized businesses so that customers.can better understand these policies. SUPPORTING FOR SMALL AND MEDIUM-SIZED ENTERPRISES
Table of Contents/Mục lục
I. Criteria for identification of small- and medium-sized enterprises:
Pursuant to Article 5 Decree No. 80/2021/NĐ-CP details about criteria for identification of small- and medium-sized enterprises. Accordingly:
1. For micro-enterprises:
- In the fields of agriculture, forestry and fishery; The industry and construction.sector employs an average of no more than 10 employees a year participating in social insurance and.the total annual revenue is not more than 3.billion VND or the total capital of the year is not more than 3 billion VND.
- In the field of commerce and services employing no.more than 10 people participating.in social insurance per year and the total annual revenue.is not more than 10 billion VND or the total capital of the year is not more than 3 billion dong.
2. For small enterprises:
- In the fields.of agriculture, forestry and fishery; the industry.and construction sector employs an average of no more than 100 employees a year.participating in social.insurance and a total annual revenue of not.more than VND.50 billion or a year’s total capital of not more than VND 20 billion, but not more.than.VND 1 billion must be a micro-enterprise as.prescribed in Clause XNUMX of this Article.
- In.the field of commerce and services employing employees.with.an average annual social insurance participation of no more than 50 people and a total annual turnover of not.more than VND 100 billion or a year’s total.capital not exceeding VND 50 billion dong, but not a micro-enterprise as prescribed in Clause 1 of this Article.
3. For medium-sized enterprises:
- In the fields.of agriculture, forestry and fishery; the industry and construction. sector employs an average of not more than 200 employees participating in social insurance per year and the total annual revenue is not.more than VND 200 billion or the total capital of the year is not more than VND 100 billion, but not more than VND 1 billion. must be a micro-enterprise or a small enterprise as prescribed in Clauses 2 and XNUMX of this Article.
- In the.fields of commerce and services employing employees with an average annual social.insurance participation of no more than 100 people and a total annual turnover of not.more than VND 300 billion or a year’s total capital not exceeding VND 100 billion dong, but not a micro-enterprise, a small-enterprise.as prescribed in Clauses 1 and 2 of this Article.
II. Supporting policies with small and medium-sized enterprises:
SMEs take a lot of support from the Government. There are 8 types of support that SMEs will receive from the State. These are: Assistance in the access to credit, Assistance in tax and accounting regimes, Assistance in production areas, Assistance in technology, Assistance in incubators, technical establishments and common working areas,Assistance in information, counseling and legal support, Assistance in Human resource development support, Assistance in market expansion.
1. Assistance in the access to credit:
SMEs will be assisted in formulating their feasible plans for business operation, intensifying their management capacity and skills and financial transparency to increase the opportunities for the access to credit.
2. Assistance in tax and accounting regimes:
SMEs may apply the corporate income tax rate lower than the common tax rate applied to enterprises for a limited period of time according to regulations of law on corporate income tax.
3. Assistance in production areas:
Ground area rental support for small and medium-sized enterprises shall be provided through subsidizing investors of industrial park, hi-tech park and industrial cluster infrastructure so as to reduce ground area rental for such enterprises. Subsidies shall be deducted from land rental or allocated from local budgets. Noted: Support in ground areas for production shall not be applied to foreign-invested small and medium-sized enterprises.
4. Assistance in technology:
– Support up to 50% of the contract value of consulting digital transformation solutions for enterprises on business processes, management processes, production processes, technology processes and business model transformation, but not more than 50 million VND/contract/year for small enterprises and not more than 100 million VND/contract/year for medium enterprises.
– Support up to 50% of costs for businesses to rent and buy digital transformation solutions to automate and improve the efficiency of business processes, management processes, production processes, and technological processes in the field. enterprises and change business models but not exceeding 20 million VND/year for micro enterprises; no more than 50 million VND/year for small enterprises and not more than 100 million VND/year for medium enterprises.
– Support up to 50% of the value of consulting contract on establishing intellectual property rights; management consultancy and development of products and services protected by intellectual property rights of enterprises but not exceeding 100 million VND/contract/year/enterprise.
– Support up to 50% of the contract value of technology transfer consulting contract suitable to the enterprise, but not exceeding 100 million VND/contract/year/enterprise.
5. Assistance in incubators, technical establishments and common working areas:
– Exemption from or reduction of land rental, land use levy and non-agricultural land use tax in accordance with law;
– Exemption from or reduction of enterprise income tax for a specified period of time in accordance with the law on enterprise income tax.
6. Assistance in information, counseling and legal support:
Small and medium-sized enterprises are entitled to free access to information on the Law on Supporting Small and Medium-sized Enterprises on the Portals and websites of ministries, horizontal agencies, Governmental agencies and Provincial People’s Committees. Including the following information:
– Information on plans, programs, projects and activities to support small and medium-sized enterprises;
– Business guidance information; information on credit, market, products, technologies and enterprise incubation;
– Other information requested by enterprises in accordance with law.
7. Assistance in Human resource development support
– Small and medium-sized enterprises are entitled to exemption from or reduction of expenses for attending state budget-funded training courses on business startup and corporate governance and for vocational training courses for their workers.
– The State shall organize online training programs and training programs in other mass media for small and medium-sized enterprises; and support direct training for small and medium-sized enterprises in the manufacturing and processing industries.
8. Assistance in market expansion
– Enterprises, organizations that invest in and trade in product distribution chains with at least 80% of small and medium-sized enterprises participating in the supply of manufactured products in Vietnam are entitled to the following supports:
+ Exemption or reduction of land rent, land use levy and non-agricultural land use tax as prescribed by law;
+ Exemption and reduction of corporate income tax for a definite period in accordance with the law on corporate income tax.
– Micro enterprises and small enterprises are entitled to incentives in contractor selection in accordance with the law on bidding.
III. SPECIAL SUPPORT POLICIES FOR SMALL AND MEDIUM – SIZED BUSINESSES
For SMEs converted from business households; innovative start-up SMEs; SMEs participating in industry clusters and value chains will enjoy more support from the State. In particular, innovative start-up SMEs and SMEs participating in industrial clusters and value chains will be loaned and financed by the SMEs development fund established by the Prime Minister.
1. Assistance for SMEs transformed from business household:
– Free counseling and guidance on dossiers and procedures for enterprise establishment;
– Exemption from enterprise registration fees and charge for first-time provision of enterprise information; charge for appraisal and fee and charge for first-time grant of business licenses for conditional business lines; and business license fee for three years after being granted the first-time enterprise registration certificate;
– Free counseling and guidance on tax-related administrative procedures and accounting regime for three years after being granted the first-time enterprise registration certificate;
– Exemption from or reduction of enterprise income tax for a specified period of time in accordance with the law on enterprise income tax;
– Exemption from or reduction of land use levy for a specified period of time in accordance with the land law.
2. Assistance for innovative startup SMEs:
– Technology application and transfer; use of equipment at technical establishments; participation in incubators and common working areas; guidance on the testing and perfection of new products, business services and models;
– In-depth training in making and developing products; attraction of investment; counseling on intellectual property; performance of procedures for technical, metrology and quality standards and regulations;
– Information, communication, trade promotion, connection to the innovative startup network, attraction of investment from innovative startup investment funds;
– Commercialization of scientific research and technological development results, exploiting and developing intellectual property;
– In each period, the Government shall decide on policies on interest rate subsidy for loans borrowed by innovative startup small- and medium-sized enterprises. Interest rate subsidy shall be provided via credit institutions.
3. Assistance for SMEs to participate in industrial linkage clusters and value chains
– In-depth training in production technology and techniques; counseling on technical, metrology and quality standards and regulations and strategies on development of products of industrial linkage clusters and value chains;
– Providing information on linkage demand, production and business of small- and medium-sized enterprises participating in industrial linkage clusters and value chains;
– Developing brand names and expanding markets for products of industrial linkage clusters and value chains;
-Supporting small- and medium-sized enterprises participating in industrial linkage clusters and value chains in trial production, inspection, assessment and certification of their product quality;
– In each period, the Government shall decide on policies on interest rate subsidies for loans borrowed by innovative startup small- and medium-sized enterprises participating in industrial linkage clusters and value chains. Interest rates shall be subsidized via credit institutions.
SMEs should effectively use the assistance of the State to be able to develop sustainably and adapt to the changes of the new economic context. With many years of experience accompanying with business, we hope that you can better understand the policies of the State so that you can develop more in the future. To learn more about the provisions of the “ Supporting Small and Medium-sized Enterprises”, please contact LawPlus via hotline +84 2862 779 399, +84 3939 30522 or email info@lawplus.vn.
