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Official Gazette

Friday, June 5, 2020

SMEs need a fair playground

Updated: 15:53’ - 20/04/2017
Small- and medium-sized enterprises (SMEs) need a transparent business environment and fair competition rather than too much support that could end up being impractical, experts said.

At conferences held in Hanoi and Ho Chi Minh City on April 13 and 14 to gather feedback on a draft law on support for SMEs, participants said that no matter what the size was, enterprises needed to be treated fairly and protected against legal barriers such as relatively limited access to preferential credit.

Conference to gather feedback on draft law on support for SMEs__Photo: Internet

Phan Dang Tuat from the Ministry of Industry and Trade said SMEs needed protection rather than support and suggested to change the name of the law to protection of SMEs as using the word “support” could affect businesses in implementing free trade agreements.

Furthermore, the supports mentioned in the draft law were too general and might be impractical given the Government’s budgetary constraints, with 97 percent of the businesses in the country calling under the SME category, he added.
Truong Thanh Duc from Basico Law Firm said all incentives should be considered carefully because overdoing it could motivate firms to become slack and dependent.

Other experts suggested to clarify the criteria for being an SME to ensure policies benefit the right enterprises.
Chairman of Dong Nai Association of Importers and Exporters Nguyen Ngoc Tuan said that administrative procedures must be further simplified so that household businesses are encouraged to become enterprises.

Head of the Ho Chi Minh Tax Agent Club Nguyen Duc Nghia suggested to adjust value- added tax for SMEs.
Lawyer Hoang Van Son emphasized the necessity to carry out studies to identify difficulties facing the SMEs, why they went bankrupt, etc., in order to provide realistic and practical supports.

Head of the Vietnam Banks Association’s Ho Chi Minh City office Le Thi Kim Xuan said the draft law should permit commercial banks to provide loans guaranteed with movable assets to SMEs.(VLLF)


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