Government Incentives for SMEs in Vietnam – 2 New Circulars
The government recently issued two regulations to help and incentivize small and medium-sized enterprises (SMEs): Circular No 06/2019/TT/BKHDT on network of consultants for SMEs and Circular No 05/2019/TT/BKHDT on subsides for training courses for women-owned SMEs went into effect May 12.
The consultant network is defined as a group of consultants and consultancies specialized in a broad range of fields to meet the needs of SMEs, recognized by regulatory agencies for supporting SMEs.
SMEs play a major role in Vietnam’s economy and account for 98 percent of all enterprises with approximately 40 percent of GDP. While the government has made a number of reforms, SMEs continue to face challenges 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.
This is an exerpt from an article appearing in Vietnam Briefing, a subsidiary of Dezan Shira & Associates. For the latest economic, regulatory and business news from Vietnam, visit vietnam-briefing.com.