As defined in Government Decree No. 56/2009/ND-CP of June 30, on assistance for development of small- and medium-sized enterprises (SMEs), which supersedes Decree No. 90/2001/ND-CP of November 23, 2001, SMEs are business establishments having lawfully made business registration and categorized into tiny, small and medium ones by amount of capital (total assets recorded in the balance sheets) and number of employees.
A tiny enterprise has less than 10 employees. A small enterprise has a capital of VND 20 billion or less or employs between more than 10 and 200 workers (these criteria for commercial and service enterprises are VND 10 billion and between 10 and 50 people). A medium-sized enterprise is capitalized at more than 20 billion to 100 or employs between 200 and 300 people (medium-sized commercial and service enterprises must have a capital of more than VND 10 billion or employ more than 50 to 100 people).
From August 20, SMEs will be provided assistance in forms of financial supports, larger production grounds, higher technological capability and technical level, expanded market and outlets, favorable conditions to procure equipment or provide public services, information and consultancy for human resources development. A fund for SME development will be set up with state budget supports, domestic contributions and foreign aid to finance programs for raising the competitiveness of SMEs, focusing on competitive and environ-mentally friendly products. In addition, the State and local administrations will enter into contracts or place orders for public-utility goods and services with SMEs.
Programs on assistance for SMEs owned by women or employing a large number of female laborers would receive state supports.