Sunday, 19 Nov 2017
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INVESTMENT

MPI to support training human resources for SMEs

Updated at Monday, 23 Oct 2017, 21:27
The Hanoitimes - This is proposal from the Ministry of Planning & Investment (MPI) in the related upcoming Decree with regard to the Law supporting small and medium enterprises (SMEs).
The Decree stated clearly on terms to support training human resources for start-ups and business management: For training courses qualified for the government supports, it will be financed for 50% of the total cost from the state budget for start-ups and business management. 


For training courses qualified for local government support: based on the counter part fund from the local government, the Municipal People’s Committee will decide the financial support level for one training course with regard to business management and start-ups, with the minimum level being 50%. 

On support for vocational training: employees working in SMEs to have 50% discount for training skills from basic to advance level in fields under the national priority, but not exceed 20 million VND for one training course and not more than one training course in one year. Besides, the Decree also stated the direct support for employees at SMEs. As such, employees working at SMEs in fields of processing and manufacturing are discounted 50% training fees at companies, but not more than 1 time per year and the company must have at least 10 participants for one training course. 

The Decree also clearly stated the support given to SMEs, which are transformed from business household. With this being said, SMEs transformed from business household can register their business for free in the first time at related administrative agency. SMEs transformed from business household also can post their information on the national business registration portal for free in the first time. Besides, enterprises are supported in the process of appraisal, issuing business registration certificate for the first time for conditional sectors and businesses. SMEs transformed from business household do not have to pay their annual fee for 3 years since the day receiving business registration certificate. 

On the other hand, under the instruction No. 26/CT-TTg dated June 06 of the Prime Minister, with regard to the support of government to enterprises, and based on the current situation of the currency market and macro-economy, since July, the State bank of Vietnam (SBV) has reduced the interest rate for SMEs by 0.5%, from 7% per year to 6.5% per year. Besides, series of events connecting banking – enterprises at provinces are implemented with the committed disbursement fund of hundreds of trillion VND in 2017. According to the statistics of SBV, at present, there are more than 200,000 SMEs lending capital from credit institutions. 

Credit growth for SMEs has been steadily growing in recent years. As of August 31, the credit balance for SMEs reached nearly 52.8 billion USD, up 7.49% compared to the same period of last year, and higher than the growth rate of the same period of 2016, which is 21.14% of total credit balance of the economy. Despite the credit relationship between bank and enterprises, especially with SMEs have been improved and more open. However, many enterprises still have difficulties accessing banks’ capital.
 
In the coming time, in order to expand the credit effectively and meet the demand for capital in production and business of SMEs, the banking system will focus on implementing consistent measures. Specifically, the banking system will cooperate with related ministries and provinces in implementing supporting policies for SMEs, which has been regulated in the Law on supporting SME, especially policies on credit guarantee for SMEs in lending from credit institutions or SME development fund.
Nguyen Tung
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