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Official Gazette

Sunday, June 11, 2023

More incentives proposed for businesses

Updated: 14:04’ - 29/07/2022
Soft loans for traders in difficulty-hit areas

The maximum loan provided by the Vietnam Bank for Social Policies to economic organizations lawfully established and operating in difficulty-hit areas would be lifted to VND 1 billion (USD 42,800) from the current VND 500 million (USD 21,400).

It is according to a draft decision formulated to revise the Prime Minister Decisions 31 and 92 of 2007.

For individual traders that apply accounting regimes and make tax declaration and payment under regulations, the maximum loan would be VND 200 million (USD 8,560). For those who fail to comply with accounting regimes, the maximum loan would be VND 100 million (USD 4,280). Households conducting production and business activities in difficulty-stricken areas would also be entitled to borrow up to VND 100 million. In some specific cases, the loan might exceed VND 100 million but not exceed VND 200 million. The Vietnam Bank for Social Policies would base itself on the funding capacity as well as demands and repayment capacity of loan borrowers to determine specific loan amounts.

The loan interest rate would be 0.75 percent per month, while the interest rate on overdue debts would be 130 percent of the loan interest rate.

The Prime Minister would decide to adjust the loan interest rate to be applied in each period at the request of the Vietnam Bank for Social Policies.

Support for sustainable businesses    

Small- and medium-sized enterprises (SMEs) recognized as sustainable businesses under Prime Minister’s Decision 167 of 2022 would be provided with financial support to cover expenses for training on sustainable business, technology transfer, and consultancy services.

These are provided in a draft circular designed by the MPI to guide the implementation of the Program on support for sole proprietorships operating after the sustainable business model in the 2022-25 period issued under Prime Minister Decision 167. 

Accordingly, the state budget would cover expenses for organizing training course on sustainable business. Employees of SMEs that participate in such courses would be exempt from tuition fees. Annually, each SME would also be entitled to send at most 3 employees to attend short-term intensive training courses on brand building and development, product commercialization, e-commerce development, capital attraction, market development, and connected with science and technology organizations and receive a support amount of up to VND 5 million (USD 214) for each employee.

Regarding consultancy contracts concerning the establishment of intellectual property rights, management and development of trademarked products and services, technology search, selection, encoding or transfer, and registration of seller accounts on international e-commerce platforms, SMEs would receive a support equaling half of contractual value, which, however, must not exceed VND 100 million/contract/year/business.

As for financial access and capital attraction consultancy contracts, the state budget would provide a support equaling the contractual value but the cap for each business would be kept at VND 200 million/contract/year.- (VLLF)


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