Vietnam’s New Law Set To Strongly Assist SMEs

HO CHI MINH, June 10 (Bernama) — The law on support to small- and medium-sized enterprises (SMEs), which is being drafted, is set to facilitate the development of the firms making up 97 per cent of the businesses in Vietnam.

Vietnam News Agency (VNA) reported that a three-day consultation on the draft was opened, here, Thursday.

At a press conference as part of the event, Deputy Minister of Planning and Investment, Dang Huy Dong said in many developed countries, it is normal to have SMEs accounting for more than 90 per cent of the enterprises.

In Japan, about 99.7 per cent of local companies are SMEs, and they are working effectively and greatly contributing to local development.

It is a must to improve the view about SMEs in Vietnam as they generate 40 per cent of total GDP (gross domestic product) and create jobs for 52 per cent of the workforce, he noted.

He admitted that Vietnamese SMEs are facing an array of difficulties in loan, land and technology access and market expansion.

That fact partly explains the private economic sector’s modest competitiveness and vulnerability to policy and social vagaries.

The law drafting, supported by USAID Governance for Inclusive Growth Programme, aims to provide a comprehensive approach for SME support.

Dang said under the draft law, there will be five SME support programmes that assist start-ups, give advice on production improvement, develop inter-sectoral connectivity and value chains, support innovation and help SMEs in integration.

Some of the programmes will be applied for all SMEs while others will focus on the most potential firms.