Vietnam’s government recently issued two regulations in an attempt to incentivise SMEs to grow. One such regulation involves the subsidisation and provision of a network of consultants for SMEs. The consultant network is defined as a group of consultants and consultancies specialised in a broad range of fields to meet the needs of SMEs, recognised by regulatory agencies for supporting SMEs. Another regulation involves subsidies for training courses for women-owned SMEs.
SMEs are a huge contributing part of Vietnam’s economy, accounting for almost 98 per cent of all enterprises in the country. They also account for approximately 40 per cent of the nations GDP. Despite the number of reforms and regulations imposed by the government to assist these firms, Vietnamese SMEs still face difficulties relating to credit, human resources, market access, and competition with foreign firms.
The latest incentives will further allow for a thriving environment for SMEs given their importance. However, the government will need to continue to provide support and reforms to SMEs if it wants to meet its target of one million firms by 2020 from the current 600,000.
Issued by the Ministry of Planning and Investment, Circular 6 gives guidelines and instructions on rules around the network of consultants providing advice to SMEs and support through a network of consultants.
The government is also expected to launch an online platform for organisations and individuals to register and be automatically admitted to the consultant network.
SMEs will then be able to look up information on the consultant network, including the name, registration number, and other details on the websites of the National Portal as well as the local ministry websites, such as the Government Inspectorate.
Circular 5 on the other hand will have the government providing subsidies for the human resources of SMEs how by women. A women-owned SME as defined by the government is one or more women who own at least 51 percent of its charter capital.
With this regulation, the government will provide 100 percent subsidy for expenses for training in entrepreneurship, business administration, and advanced business administration for women at women-owned SMEs.