At a policy consultation workshop organized by the Ministry of Finance on May 19, business representatives called for the swift removal of barriers related to capital access, administrative procedures and compliance costs to help SMEs strengthen competitiveness and resilience amid market fluctuations.
Speaking at the event, Ms. Trinh Thi Huong, Deputy Director General of the Department of Private Enterprise and Collective Economy Development under the Ministry of Finance, said that Vietnam currently has more than one million active businesses, of which around 98 percent are SMEs. Micro and small enterprises alone account for nearly 70 percent.
She noted that SMEs play a crucial role in job creation, maintaining livelihoods and contributing to economic growth. However, the sector continues to face significant challenges, including limited access to finance, technology and skilled labor, as well as low productivity and difficulties meeting market standards.
Notably, fewer than one percent of operating businesses has been able to access support funds or credit guarantee schemes.
Representatives from the International Labour Organization (ILO) proposed several priorities for building a stronger SME support ecosystem, including improving productivity alongside working conditions, helping businesses comply with labor and occupational safety regulations, formalizing household businesses and micro-enterprises, and expanding support for women, youth, migrant workers and people with disabilities.
According to the ILO, digital transformation could create new opportunities for businesses to expand markets, improve management efficiency and participate more deeply in the digital economy.
The organization hoped that the revised policies would enhance competitiveness, preserve jobs and improve the resilience of Vietnamese businesses in the changing economic environment.
Acknowledging feedback from the business community, Ms. Trinh Thi Huong said that the Ministry of Finance is comprehensively revising the Law on Support for Small and Medium-sized Enterprises.
The draft amendments propose various mechanisms to help businesses integrate more deeply into global value chains and expand overseas investment through financial support, technology assistance and brand development incentives.
Expenses related to brand building, compliance with international standards and sustainable development may be eligible for tax-deductible costs of up to 200 percent when determining taxable income.
The draft also includes policies to support innovative enterprises, scientists and experts working within businesses, as well as assistance for training, legal consulting, digital transformation and management capacity improvement.
In particular, the proposal would prioritize SMEs in small-scale public procurement packages valued at around VND200 million (US$7,591).
