The Hanoitimes - The Ministry of Planning and Investment (MPI) and the United States Agency for International Development (USAID) jointly held a seminar in Hanoi on October 19 to collect ideas on the draft Law on Support to Small and Medium-sized Enterprises.
A workshop was organised in Hanoi on October 19 to collect ideas on the draft Law on Support to Small and Medium-sized Enterprises that will be debated during the 14th National Assembly’s second session starting from October 20.
Addressing the conference, MPI Deputy Minister Dang Huy Dong noted that small and medium-sized enterprises (SMEs) are considered to be the backbone of the economy.
At the seminar.
SMEs now account for more than 97 percent of total firms, employing over 50 percent of the country’s workforce and making up 40 percent of GDP, the deputy minister said.
However, he told that despite the great contribution, SMEs are facing many difficulties and obstacles in accessing resources such as credit, land for production and market.
The bill aims to synchronize support policies and programmes for SMEs to fit the economic targets and orientations of the country and strengths of specific localities and resources for each period, he said.
It also creates a legal framework for mobilising the engagement of the private sector as well as domestic and international organisations in the Government’s efforts in assisting SMEs, while addressing problems in policies and implementation of supports for SMEs.
Deputy Minister Dang Huy Dong stressed that the Law on Support to SMEs is expected to help create more jobs from the private sector, which attracts more than half of the female employees, contributing to help Vietnam achieve the target of having 1 million enterprises by the end of 2020.
During the event, Le Van Khuong, head of the Office for SMEs under the Business Development Department, highlighted that the bill comprises six chapters and 45 articles focusing on basic supports for SMEs, including regulations in entering and retreating from the market, accessing finance and credit, technology, production ground, market expansion and promotion, public purchase, and training.
The support will be provides through mechanisms and policies as well as favourable conditions for intermediary organisation to offer assistance services for SMEs. The enterprises will be assisted in business model transformation, creative renovation and joining production chains.
He added that the bill is suitable with Vietnam’s commitments to the Trans-Pacific Partnership, which is expected to create more jobs from the private sector, contributing to helping Vietnam reach the target of one million firms in 2020.
Speaking at the event, Gloria Steele, USAID Vice Director for Asia, said that the creation of a dynamic environment for SMEs is necessary, creating favourable conditions for the development of Vietnam, one of the fastest growing economies in Asia.
The USAID will accompany Vietnam in designing policies to support SMEs, Gloria Steele vowed.
At the conference, delegates said that the law should specifically help small enterprises to be able to accumulate the initial capital and incentives for access to loans with lower interest rates.