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| Garment production activities at Chien Thang Garment Joint Stock Company__Photo: VNA |
During a working session between the Vietnam Chamber of Commerce and Industry (VCCI) and the Standing Committee on Economic and Financial Affairs of the National Assembly, Mr. Dau Anh Tuan, Deputy Secretary General of VCCI, presented insightful analyses alongside a comprehensive system of solutions aimed at refining the draft resived Law on Support for Small- and Medium-Sized Enterprises. By summarising opinions from the business community, particularly from the manufacturing, processing, and supporting industry sectors, VCCI has focused its recommendations on regulations that currently remain only at the principle level.
According to him, the domestic private economic sector is still characterised as “numerous but small”, with nearly 70 per cent of non-state enterprises having a capital amount of under VND 10 billion and 81.4 per cent employing fewer than 10 workers each, and seeing an uneven distribution density between major cities like Ho Chi Minh City and Hanoi and the mountainous provinces.
Nevertheless, VCCI highly appreciates the latest draft published on June 1, 2026, which features several breakthrough improvements. These include institutionalising the principle of output-based budget allocation and the voucher support method (Articles 5 and 6); a credit granting mechanism based on cash flow, data, value chains, or intangible and future-formed assets (Article 8); the “guidance first, sanction later” solution applied to transformed household businesses (Article 20); and a point-scoring preference policy for contractors using SMEs as subcontractors (Article 33).
To ensure these new points are effectively implemented in practice, VCCI proposes the following:
Firstly, regarding classification criteria (Article 4), applying a universal threshold of under 300 employees and revenue under VND 400 billion is constraining material-intensive industries such as electronics, where material costs account for 85 to 90 per cent of production costs. VCCI proposes raising the revenue ceiling to VND 1,000 billion for certain industries and allowing a 3-year transition when the threshold is exceeded.
Secondly, in Article 9, it is necessary to extend corporate income tax incentives to medium-sized enterprises in the manufacturing and supporting industries, while adding incentives for expansion investment and technological innovation for existing operating units.
Thirdly, regarding capital access (Article 8), the Government should issue a valuation framework for intangible assets, intellectual property rights, and purchase orders; shorten the appraisal period; and provide a minimum interest rate subsidy of 2 per cent per annum to ensure fairness for green projects mentioned in Article 21.
Fourthly, regarding premises (Article 10), the rental reduction should be increased to 30 per cent for seven years for both direct-leasing enterprises and existing supporting industries, ensuring alignment with the 2024 Land Law and Resolution 198/2025/QH15.
Fifthly, regarding research and development (Article 11), it is necessary to expand the scope of deductible expenses and simplify the procedures for establishing the Scientific and Technological Development Fund under Resolution 57-NQ/TW.
Sixthly, regarding digital transformation, the support should be quantified to a minimum of 50 per cent of costs (with a ceiling) for ERP, MES, AI, and IoT technologies, alongside allowing accelerated depreciation for software.
Seventhly, regarding green transition and ESG (Environmental, Social, and Governance) (Article 21), it is recommended to raise the interest rate support to 3 percent per annum; extend eligibility to conventional manufacturing enterprises with green projects; fund at least 50 percent of certification and greenhouse gas inventory costs; support compliance with the CBAM (Carbon Border Adjustment Mechanism); and allow 150 percent of ESG consulting costs to be counted as deductible expenses.
Eighthly, regarding procedure simplification (Articles 5 and 9), the adoption of simplified accounting should apply to small-sized enterprises as well; data should be integrated for “single-declaration” purposes; and support should only be excluded upon a legally effective court judgment, respecting the presumption of innocence principle under Resolution 68-NQ/TW.
Ninthly, the principle of “guidance first, sanction later” should be incorporated in the laws applicable to all SMEs (Chapter I or Article 5).
Tenthly, regarding public procurement (Article 12), strict monitoring mechanisms must be in place for the minimum 20 per cent capital allocation designated for SMEs, prioritising domestic products and supporting industries.
Last but not least, new provisions should be added concerning support for fire protection compliance; funding for technology transfer within interconnected clusters (Article 22); a separate chapter to pilot a regulatory sandbox mechanism with liability exemption for objective risks during the process of innovation; and a more specific scope of application of support vouchers.- (VLLF)
