Post by : Shakul

Vietnam’s Ministry of Finance is preparing major changes to the country’s Law on Supporting Small and Medium-Sized Enterprises as part of broader efforts to strengthen the private sector and improve the competitiveness of local businesses. The proposed amendments aim to simplify the criteria used to define SMEs while making government support programs more transparent, effective and easier to implement.

According to officials, the revised law is designed to create a stronger legal framework that supports the rapid and sustainable development of small and medium-sized enterprises across Vietnam. Authorities believe the reforms will help improve productivity, encourage innovation, expand market access and increase the contribution of SMEs to economic growth and job creation.

One of the biggest proposed changes involves simplifying the definition of SMEs. Under the draft law, enterprises would be classified based only on two main factors — the average annual number of employees and total annual revenue from the previous year. Officials say this approach would make verification easier using business registration, tax and insurance databases while also aligning Vietnam’s system more closely with international standards.

The draft proposes that SMEs should include micro, small and medium-sized enterprises with no more than 300 employees and annual revenue not exceeding 400 billion Vietnamese dong. The classifications would continue to apply across major sectors including agriculture, forestry, fisheries, industry, construction, trade and services.

The government also plans to strengthen accountability and transparency in support programs for businesses. The proposed law emphasizes digital transformation, output-based funding and time-bound support policies. Authorities want support measures to focus more directly on measurable business results and practical outcomes rather than lengthy administrative procedures.

Officials additionally proposed combining training, consulting, mentoring and coaching programs into more integrated support systems for enterprises. The draft law also introduces the idea of support vouchers, allowing SMEs to select services that best fit their operational needs and development goals.

Another important aspect of the proposal involves improving oversight of financial support mechanisms such as credit guarantee funds, SME development funds and venture capital support for innovative startups. Authorities say stronger regulations are needed to prevent policy abuse while encouraging private investment and mobilizing additional non-state financial resources for business development.

Experts believe the proposed reforms reflect Vietnam’s growing focus on strengthening the domestic private sector amid increasing global economic competition and digital transformation. If approved, the amended law could play a major role in helping Vietnamese businesses scale operations, improve innovation and compete more effectively in international markets.

#Economy #Vietnam #Business