Legal News
Regulations on supporting SMEs

02 - 09 - 2017

The National Assembly passed Law No. 04/2017/QH14 on supporting small and medium sized enterprises (SMEs).

Question: What are the criteria for determining SMEs? What are rules for supporting SMEs?


Criteria for determining SMEs

Pursuant to this Law, SMEs in the fields of agriculture, forestry and aquaculture; industry and construction; and trade and service will include: extremely small and SMEs with an average of not more than 200 employees participating in social insurance annually, and meet either of the following criteria: (i) Total capital sources of not more than 100 billion dong or (ii) Total revenue of the preceding year at not more than VND 300 billion.

Rules for supporting SMEs

Pursuant to this Law, in support SMEs, the State will provide support in definite terms and will be appropriate for the target of support, ability to balance resources and utilization of external resources.

• Will comply with market rules, being consistent with international treaties; ensuring transparency with regard to the contents, objects, sequence, procedures, resources, level of support and ability to balance resources.

• Where SMEs meet the conditions for different levels of support, they can choose the most beneficial level.

• Where SMEs meet the conditions for support under this Law, priority is given for those owned by women (a woman/women who own 51% or more of the charter capital and at least one of them participates in administration and management), and for those recruiting more female employees./.

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