Hanoi (VNA) – TheMinistry of Planning and Investment (MPI) held a workshop in Hanoi on September19 to provide updates on the Law on Support for Small- and Medium-sizedEnterprises and its enforcement in order to solve some of the issues that havearisen during its implementation.

MPI Deputy Minister Vu Dai Thang said that about98 percent of the over 700,000 businesses in Vietnam are small- or medium-sizedenterprises (SMEs). They play an important role in creating jobs, improvingworker incomes, reducing poverty, and contributing to the state budget andeconomic growth. They are the main force tapping into niche markets andcapitalising on the social resources available to serve economic development.

He noted that the Law on Support for SMEs, totake effect in 2018, is a practical solution to boosting the development oflocal businesses and the economy. Its general role is to support SMEs in atimely manner since they are set up, pushing to achieve the goal of 1 millionbusinesses operating effectively in the country by 2020.

According to Deputy Director of the MPI’sEnterprise Development Agency Nguyen Hoa Cuong, the private economic sector –of which SMEs make up the majority – contributes about 48 percent to thecountry’s GDP and creates over 50 percent of total jobs.

The MPI and other ministries and sectors havestepped up their capacity in disseminating the law, highlighting the effectsand benefits that businesses could gain from it. It has helped to improve therelevant legal system and better the investment and business environment ofVietnam, he said.

He added that the establishment of new companieshas increased over the last couple of years, gradually creating a widespreadinflux of startups. During the first eight months of 2018, more than 87,000 newfirms were founded.

The MPI affirmed that the new law pays specialattention to encouraging innovative startups in order to fuel economic growthtowards sustainable development. The support provided will focus on practicalaspects like fee and tax reduction; providing legal aid and advice onintellectual property and copyrighting; and manpower training.

Cuong said some enterprises wish authorised agenciesto clarify the criteria for innovative startups and create mechanisms andchances for the public and businesses to monitor and assess the law’senforcement.

The ministry said to ensure that SMEs willbenefit more from this law, it will continue to review and assess the law’simplementation so as to assist companies in a more substantive and effectivefashion.

In particular, the MPI will submit a draftdecree on the organisation and operation of the fund for SME development to theGovernment. It will also accelerate the drafting of circulars guiding theimplementation of this law to complete the legal framework in this regard.–VNA