Chapter II
CONTENTS OF ASSISTANCE FOR SMES
Section 1: GENERAL ASSISTANCE
Article 8. Assistance in the access to credit
1. In each period, the Government shall introduce policies on provision of assistance for credit institutions in increasing maximum loans granted to SMEs; encouraging credit institutions to provide loans for SMEs according to their credit ratings and other criteria; encouraging the establishment of independent consulting firms that assign credit ratings to SMEs
2. 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
3. SMEs will be provided with the credit guarantee from the credit guarantee funds for SMEs according to regulations in Article 9 of this Law.
Article 9. Credit guarantee funds for SMEs
1. The credit guarantee fund for SMEs is a state fund other than the state budget which operates without profits and is established by People’s Committee of the province.
2. The credit guarantee fund for SMEs shall provide credit guarantee for SMEs.
The credit guarantee for SMEs is based on the guaranteed property or the feasible plan for business operation or credit ratings of SMEs.
3. The credit guarantee fund for SMEs shall fulfill fully the committed guarantee obligations and shall not refuse to provide guarantee for eligible SMEs.
4. The Government shall provide detailed guidance on this Article.
Article 10. The assistance in tax and accounting regimes
1. 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.
2. Micro- enterprises may apply tax administrative procedures and simple accounting regimes in accordance with the law on tax and accounting.
Article 11. Assistance in production areas
1. According to the available land area of the province, the People’s Committee of the province shall send People’s Council of the province a request for the decision on distribution of land for construction and development of industrial clusters and processing zones for agricultural, forestry, fishery and seafood products serving the SMEs in accordance with the approved land use planning.
2. According to the local budget, the People’s Committee of the province shall send the People’s Committee of the province a request for the decision on the assistance in rent subsidies for SMEs in industrial zones, hi-tech zones and industrial clusters in the province. The maximum period of the assistance is 5 years from the day on which the land lease agreement is signed.
3. The assistance in site rental for SMEs prescribed in Clause 2 of this Article shall be carried out via the subsidy for investors constructing infrastructures of industrial zones, hi-tech zones and industrial clusters to reduce the site rental paid by SMEs.The assistance in rent subsidies for SMEs prescribed in Clause 2 of this Article shall be carried out via the subsidy for investors constructing infrastructures of industrial zones, hi-tech zones and industrial clusters to reduce the land rent paid by SMEs.
The subsidy shall be deducted from the land rent or covered by the local budget.
4. The assistance in production site prescribed in this Article shall not apply to foreign-invested or state-invested SMEs.
Article 12. Assistance in terms of technologies, assistance for incubators, technical establishments and co-working space
1. The State shall introduce policies on providing assistance for SMEs in researching, innovating, receiving, improving, completing and mastering technologies through the research, training, consultancy, searching, decipher and transfer of technology and in establishing, exploiting, managing, protecting and developing the intellectual property of the SMEs.
2. Ministries, ministerial authorities and People’s Committees of provinces shall establish or join public–private partnership to establish incubators, technical establishments and co-working spaces. Other enterprises and investors may establish their incubators, technical establishments and co-working spaces.
3. Incubators, technical establishments and co-working spaces are entitled to:
a) Remission of land rental, land levy and the levy on non-farming land in accordance with regulations of law.
b) Remission of corporate income tax for a limited period of time in accordance with regulations of law on corporate income tax.
Article 13. Assistance in expansion into markets
1. Ministries, ministerial authorities and People’s Committees of provinces shall establish or join the public–private partnership to establish a distribution chain. Enterprises and other business investment organizations may establish their distribution chains.
2. Enterprises and business investment organizations joining the distribution chain of products manufactured in Vietnam having at least 80% of members that are SMEs are entitled to:
a) Remission of land rental, land levy and the levy on non-farming land in accordance with regulations of law.
b) Remission of corporate income tax for a limited period of time in accordance with regulations of law on corporate income tax.
3. Micro-enterprises and small enterprises will be given priority during contractor selection in accordance with regulations of law on bidding.
Article 14. Assistance in access to information, consultancy and legal issues.
1. The following information shall be published on the national SMEs website portal, websites of ministries, ministerial authorities, People's Committees of provinces, social organizations and socio-professional organizations:
a) Information about plans, programs, projects and activities related to the assistance for SMEs;
b) Business guidelines, credit, markets, products, technologies and enterprise incubation;
c) Other information requested by the SMEs in accordance with regulations of law.
2. Ministries and ministerial authorities, within their power and duties, shall set up a system of organizations and individuals providing consulting service for SMEs (hereinafter referred to as “consultant system”). SMEs will be entitled to remission of consulting fees if they use consulting services provided by the consultant system.
3. Ministries, ministerial authorities, authorities and organizations, within their duties and power, shall carry out the following activities to provide the legal assistance for SMEs:
a) Establishment, management, maintenance, updating, exploitation and use of databases of law;
b) Formulation and execution of programs for the legal assistance to provide information improve legal knowledge and provide legal consultancy.
4. The Government shall provide detailed guidance on this Article.
Article 15. Assistance in developing human resources
1. SMEs are entitled to reduction or exemption of charges for training courses funded by the state budget on entrepreneurship, enterprise administration and job training for employees working in SMEs.
2. The State shall provide online training programs and training programs through mass media for SMEs and provide training courses at premises of SMEs engaged in production and processing area.
3. The Government shall provide detailed guidance on this Article.
Section 2. ASSISTANCE FOR SMES IN CONVERSION FROM HOUSEHOLD BUSINESS TO SMES, STARTUPS, JOINING BUSINESS CLUSTERS AND VALUE CHAINS
Article 16. Assistance for SMEs in conversion from household business to SMEs
1. An SME converted from a household business will receive assistance if the following conditions are fulfilled:
a) Before being converted to a SME, the household business has obtained the enterprise registration certificate (ERC) and is run in accordance with regulations of law.
b) The household business has been operating continuously for at least 01 year by the day on which the first ERC is issued.
2. Such an SME mentioned in Clause 1 of this Article is entitled to the following forms of assistance
a) Free consultancy and instruction on applications and procedures for the enterprise establishment;
b) Exemption from fees for enterprise registration and the first provision of enterprise information; exemption from fees for assessment and fees and licensing fees for the first license of business lines subject to conditions and exemption from licensing fees within 3 years from the day on which the first ERC is issued;
c) Free consultancy and instruction on the tax administrative procedures and the accounting regime within 03 years from the day on which the first ERC is issued;
d) Remission of corporate income tax for a limited period of time in accordance with regulations of law on corporate income tax.
dd) Remission of land rental, land levy and the levy on non-farming land for a limited period of time in accordance with regulations of law on land.
3. The SME converted from a household business shall inherit all rights, obligations and legal interests of the household business in accordance with regulations of law. If a household business is converted into a limited liability company or a joint stock company, the household business owner, with his/her entire property shall be liable for the outstanding loans of the household business unless otherwise agreed by the parties in accordance with regulations of law.
4. The household business shall be shut down as soon as the SME converted from this household business is issued with ERC.
5. The Government shall provide detailed guidance on Clause 2 of this Article.
Article 17. Assistance for startups
1. A startup may receive the assistance if the following conditions are fulfilled:
a) The startup has been put into operation for up to 05 years from the day on which its first ERC is issued.
b) The startup has not initiated public offering of its securities (in cases of a joint-stock company)
2. Such an SME mentioned in Clause 1 of this Article is entitled to the following forms of assistance:
a) Assistance in the application and transfer of technologies, use of equipment at the technical establishments, incubators and co-working spaces, provision of instruction on testing and completing new products, services and business models;
b) Assistance in advanced training in development of products, investment attraction, providing advice on intellectual property, carrying out the procedures related to technical regulations and standards, measurement and quality;
c) Assistance in communication, publicity, promotion, connection of startups and attraction of investment from venture capital funds;
d) Assistance in commercialization of the results of scientific research and technological development, exploitation and development of intellectual property;
dd) The Government shall introduce policies on interest rate subsidy on loans taken by startups. The subsidy on interest rate is provided by credit institutions.
3. The Government shall provide detailed guidance on this Article.
Article 18. Investment in startups
1. Investors in startups shall include venture capital funds and domestic and foreign organizations and individuals doing business via contribution of capital to establishment of startups, purchase of shares or stakes of startups.
2. A venture capital fund which is created from investments of private investors aims to invest in startups according to the following principles:
a) The amount of investment in a startup shall not exceed 50% of charter capital of the post-investment startup;
b) The private investor who contributes to the fund shall be financially capable and take the responsibility for his/her stakes.
3. The investors in startups prescribed in Clause 1 of this Article will be entitled to remission of corporate income tax on revenues from their investment in startups for limited period of time in accordance with regulations of law on corporate income tax.
4. According to the local budget, the People’s Committee of the province shall send the People’s Council of the province a request for the decision on assigning state-owned finance organizations of the province to invest in startups according to the following principles:
a) The eligible venture capital funds shall be selected to invest in startups;
b) Investments from the local budget shall not exceed 30% of total capital raised from eligible venture capital funds selected by the startups;
c) The investments shall be transferred to private investors within 05 years from the day on which the stakes is contributed. The transfer of investments shall comply with regulations of law on management and use of the state capital invested in business operation activities at premises of enterprises.
5. The Government shall provide detailed guidance on this Article.
Article 19.The assistance for SMEs joining business clusters and value chains
1. An SME that join a business cluster and value chain in production and processing area will receive assistance if it:
a) creates products that gain competitive advantages in terms of quality and cost; or
b) innovates the technological process, materials, spare parts, machines and equipment.
2. Such an SME mentioned in Clause 1 of this Clause is entitled to the following forms of assistance:
a) Provision of advanced training in the production technology and technique; provision of consultancy related to technical regulations and standards, measurement and quality and strategies for product development according to business clusters and value chains;
b) Provision of information about the demand for connection, production and business of SMEs joining business clusters and value chains;
c) Assistance in brand development, expansion into product markets of business clusters and value chains;
d) Assistance in test production, assessment, verification and certification of the quality of products of SMEs joining business clusters and value chains;
dd) The Government shall introduce policies on interest rate subsidy on loans taken by SMEs joining business clusters and value chains in each period. The subsidy on interest rate is provided by credit institutions.
3. The Government shall provide detailed guidance on this Article. The assistance for SMEs joining business clusters and value chains that are not related to the production and processing area shall be decided by the Government after opinions of the Standing Committee of National Assembly are received.
Article 20. SME development funds
1. SME development fund is a non-profit state financial fund that is not funded by the state budget and is established by the Prime Minister to:
a) grant loans and sponsorships to startups and SMEs joining business clusters and value chains
b) receive and manage loans, sponsorship, aids, contributions and trusts of organizations and individual to assist SMEs.
2. The Government shall provide detailed guidance on this Article.
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