The National Assembly in June 2017 passed a law that has a goal of supporting small and medium-sized enterprises (SME). The law has an effective date of 1 January 2018.
Under the new law, SMEs include micro, small and medium-sized enterprises that have an average number of employees contributing social insurance of no more than 200 and that satisfy one of the following two criteria:
SMEs that satisfy these conditions may be entitled to various incentive measures such as support with credit access, support with tax and accounting, support with acquiring production space, among other items. In addition, the new measures provide special support measures to three types of SMEs—SMEs converted from business households; innovative start-up businesses; and SMEs participating in industrial linkage clusters and value chains in the field of production and processing.
Specific guidance is expected to be released by governmental agencies.
Read a June 2017 report [PDF 236 KB] prepared by the KPMG member firm in Vietnam
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