New law to ease SME funding, operations

11:15 | 03/08/2017 Society

(VEN) - The National Assembly recently approved a Law on Support for Small to Medium-sized Enterprises (SMEs). Vietnam Economic News’ Nguyen Hoa spoke with a member of the law compilation board, Deputy Minister of Planning and Investment, Dang Huy Dong, to learn about the law’s potential impact on SMEs and the country’s economic development.  

Deputy Minister of Planning and Investment Dang Huy Dong

How is the law expected to influence SMEs?

The most important thing that the law is expected to bring is an ecosystem for SMEs, especially start-ups, to develop better, as well as conditions for them to participate in the inter-sector value chain. These are expected to contribute to improving the country’s economic growth, economic structure transformation, and market economy institutions.

There are already ecosystems in place to promote SMEs. Many innovations funds have also begun operation, but policies need to be formulated to help them operate more efficiently and to better support the SME community.

You said the law is a precious gift for SMEs. Could you explain that?

The law is good news for SMEs in Vietnam. This is the first time a law specifically designed for them is enacted. It governs policies and state-funded and privately financed promotion systems for SMEs and will create a better environment for businesses by enabling them to approach capital, land, market information, and more.

Many SME promotion policies remain impractical. Will the law provide practical ones?

The law was formulated based on the real needs of enterprises that we learned through extensive surveys, research and analyses. The law is based on what enterprises need, not on what the government has, so its policies will be practical. For example, if the law is strictly followed, price fall during bumper crop will no longer happen.

What should be done for the law to have an effect as soon as possible?

It is important to complete decrees and circulars guiding the law’s implementation for submission to the government for approval. Ministries, sectors and localities should seriously follow the law and provide opportunities for SMEs to develop in order to improve the economy’s competitiveness in the context of international economic integration.

The Law on Support for Small to Medium-sized Enterprises, including four chapters with 36 articles, will take effect from January 1, 2018.

Nguyen Hoa