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- Vietnam issued Decree 80 on defining what constitutes an SME in addition to authorities help for SMEs.
- Decree 80 replaces Decree 39 and got here into impact on October 15.
- Buyers ought to search the help of native advisers to raised perceive how they will profit from these incentives.
The Vietnamese authorities issued Decree No 80/2021/ND-CP (Decree 80) guiding the implementation of the Legislation on Assist for Small and Medium Enterprises (SMEs). Decree 80 got here into impact on October 15 and replaces Decree 39.
Small and medium-sized enterprises proceed to play a serious position in Vietnam, accounting for 98 % of all enterprises, 40 % of GDP, and 50 % of employment.
SME standards
Decree 80 unveils a number of help measures for SMEs and in addition to offers clear definitions for what’s constituted as an SME:
The standards for figuring out an SME is as follows:
Micro-enterprises
- For agriculture, forestry and fishery, and trade and building industries:
- Have staff with a mean of 10 folks or much less collaborating in annual social insurance coverage;
- Whole income for the 12 months is just not greater than VND 3 billion (US$131,000) or whole capital for the 12 months is VND 3 billion (US$131,000) or much less.
- For commerce and companies:
- Have staff with a mean of 10 folks or much less collaborating in social insurance coverage per 12 months;
- Whole income in a 12 months is lower than VND 10 billion (US$438,000) or whole capital in a 12 months is VND 3 billion (US$131,000) or much less.
Small companies
- For agriculture, forestry and fishery, and trade and building industries:
- Have staff with a mean of 100 folks or much less collaborating in social insurance coverage;
- Whole income in a 12 months is VND 50 billion (US$2.2 million) or much less, or whole capital in a 12 months is lower than VND 20 billion (US$877,000) and isn’t a micro-enterprise.
- For commerce and companies
- Have staff with a mean of fifty folks or much less collaborating in annual social insurance coverage;
- Whole income in a 12 months is VND 100 billion (US$4.3 million) or much less or whole capital in a 12 months is VND 50 billion (US$2.2 million) or much less and isn’t a micro-enterprise.
Medium enterprises
- For agriculture, forestry and fishery, and trade and building industries:
- Have staff with common of 200 folks or much less collaborating in annual social insurance coverage;
- Whole income in a 12 months is VND 200 billion (US$8.7 million) or much less or whole capital in a 12 months is VND 100 billion (US$4.3 million) or much less, and isn’t a micro-enterprise.
- For commerce and companies:
- Have staff with a mean of 100 folks or much less collaborating in annual social insurance coverage;
- Whole income in a 12 months is VND 300 billion (US$13 million) or much less of the whole capital in a 12 months is VND 100 billion (US$4.3 million) or much less and isn’t a micro-enterprise.
Authorities help for SMEs
Decree 80 additionally offers authorities help for SMEs. These embody however will not be restricted to:
- SMEs transformed from family companies are exempt from the license price for 3 years from the date the enterprise registration certificates (ERC) is issued;
- For micro-enterprises – one hundred pc of the consulting contract can be supported however no more than VND 50 million (US$2,000) per 12 months;
- For micro-enterprises that make use of feminine employees and which are social enterprises – a one hundred pc of the consulting contract is supported however no more than VND 70 million (US$3,000) per 12 months;
- For small companies the federal government will help 50 % of the contract worth however no more than VND 100 million (US$4,300) per 12 months;
- SMEs owned by ladies can be supported as much as 50 % of the contract worth however no more than VND 150 million (US$6,500) per 12 months;
- For medium enterprises, the federal government will help 30 % of the contract worth however no more than VND 150 million (US$6,500) per 12 months;
- Medium enterprises owned by ladies are eligible for 50 % of the contract worth however no more than VND 200 million (US$8,700) a 12 months; and
- one hundred pc authorities help for SMEs in industrial clusters and worth chains however no more than VND 30 million (US$1,300) a 12 months.
- one hundred pc authorities help on coaching programs for beginning a enterprise and as much as 70 % help of the whole price of enterprise for SMEs.
As well as, SMEs can have free entry to on-line lectures out there with the Ministry of Planning and Funding (MPI) and native folks committees.
SMEs play vital position in Vietnam’s economic system
Vietnam considers SMEs as an vital driving pressure for its economic system Whereas issues stay, the federal government launched the Legislation on Assist for Small and Medium Enterprises No 04/2017/QH14, which took impact in January 2018 and seeks to help SMEs. There are additionally a number of authorities, private-funded applications, and organizations lending help to SMEs.
Regardless of this, SMEs proceed to face challenges as a result of unclear pointers, obscure supporting insurance policies, and implementation of the legal guidelines by native authorities. To handle this, the federal government has issued a number of rules and circulars akin to the brand new funding legislation, Round 5, and Round 6 to assist help SMEs. The newest Decree 80 will additional assist SMEs acquire entry to authorities incentives, significantly after the fourth wave of the pandemic.
About Us
Vietnam Briefing is produced by Dezan Shira & Associates. The agency assists international buyers all through Asia from places of work the world over, together with in Hanoi, Ho Chi Minh Metropolis, and Da Nang. Readers might write to vietnam@dezshira.com for extra help on doing enterprise in Vietnam.
We additionally preserve places of work or have alliance companions aiding international buyers in Indonesia, India, Singapore, The Philippines, Malaysia, Thailand, Italy, Germany, and the United States, along with practices in Bangladesh and Russia.
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