Directive No. 40/2005/CT-TTg on further promoting assistance for the development of small and medium-sized enterprises

DIRECTIVE

On further promoting assistance work for

small and medium-sized enterprise development

In order to encourage the development of small and medium-sized enterprises to fulfill their important role as determined in the national economic and social development strategy, the Government issued Decree No. 90/2001/NĐ-CP on November 23, 2001 regarding assistance for the development of small and medium-sized enterprises. After four years of implementation, along with many other mechanisms and policies, the Decree has had a significant impact on the development of small and medium-sized enterprises, contributing to the country's economic and social development in recent times.

However, the implementation of Decree No. 90/2001/NĐ-CP remains slow, with many contents not being implemented or not meeting requirements in terms of assisting enterprises in general and small and medium-sized enterprises in particular. The main reasons are limited understanding of the significance and importance of policies to assist the development of small and medium-sized enterprises in the national economic and social development strategy at all levels and sectors; lack of appropriate solutions tailored to the conditions and specific needs of the business sector; loose and scattered coordination between central and local state agencies; and insufficient focused guidance and timely resolution of difficulties and obstacles faced by enterprises.

To further promote assistance work for the development of small and medium-sized enterprises, creating a positive shift in policy enforcement, development, and enhancing the competitiveness of these enterprises, the Prime Minister instructs:

1. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairmen of provincial People's Committees under the Central Government shall closely direct the effective implementation of measures and tasks related to creating a favorable business environment and supporting the development of enterprises as stipulated in the Prime Minister's Directive No. 09/2005/CT-TTg dated April 5, 2005 on further accelerating administrative reform and Directive No. 27/2003/CT-TTg dated December 11, 2003 on further implementing the Enterprise Law and encouraging the development of small and medium-sized enterprises.

Ministries, sectors, and localities shall proactively submit to the Government and the Prime Minister for issuance of guiding documents within their authority, while preparing necessary conditions to organize the implementation of the Enterprise Law and Investment Law which have been adopted by the National Assembly.

2. The Ministry of Planning and Investment:

a) By the first quarter of 2006, take the lead and coordinate with the Ministries of Public Security, Finance to unify measures to quickly resolve issues related to business registration, stamping, tax code issuance, invoice sales...

b) Complete the plan for the development of small and medium-sized enterprises for the period 2006-2010 by January 2006 for submission to the Prime Minister for consideration and approval.

c) In 2006, the system of management agencies promoting assistance for the development of small and medium-sized enterprises must be basically established and effectively implement activities to promote enterprise development.

d) Guide and direct localities, ministries, sectors, and business associations to promptly implement the Program on training human resources for small and medium-sized enterprises from 2004 to 2008 as stipulated in Decision No. 143/2004/QĐ-TTg dated August 10, 2004 of the Prime Minister.

đ) Coordinate with ministries, sectors, localities to develop a program to provide necessary information for small and medium-sized enterprises. By the first quarter of 2006, complete the initial steps of upgrading the enterprise information website, initially providing basic information on business registration, laws and regulations on enterprises, support measures for small and medium-sized enterprises, domestic and foreign investment environments...

e) Coordinate with ministries, sectors, localities, and business associations to urgently develop the technical support program for small and medium-sized enterprises as stipulated in Decree No. 90/2001/NĐ-CP dated November 23, 2001 of the Government to enhance the competitiveness of small and medium-sized enterprises.

g) Strengthen guidance and coordination in managing to improve the effectiveness of projects assisted by international organizations and foreign countries, based on which, negotiate to attract more external resources for assisting small and medium-sized enterprises.

h) Coordinate with ministries, sectors, and localities annually to compile the situation of small and medium-sized enterprise development, promptly propose solutions to address difficulties for enterprises, report to the Prime Minister for consideration and resolution of issues exceeding authority.

3. Ministry of Finance:

a) In the second quarter of 2006, evaluate the implementation of establishing credit guarantee funds in the past period, propose specific solutions for submission to the Prime Minister for decision to accelerate the establishment of credit guarantee funds for small and medium-sized enterprises in localities, actively contributing to solving the credit demand of small and medium-sized enterprises.

Submit to the Prime Minister mechanisms and policies on import and export credit; innovate and perfect financial policies for enterprises to ensure equality, stability, transparency, and clarity to create conditions to encourage the production capacity of enterprises of all economic components.

c) Coordinate with the Ministry of Planning and Investment to continue administrative reform in implementing preferential investment regimes, simplifying procedures to encourage investment in new fields, high-quality service industries, and key product manufacturing; propose mechanisms to encourage and support credit for small and medium-sized enterprises in rural areas, localities with potential for developing small-scale and handicraft industries, craft villages...

4. The State Bank of Vietnam:

In the first quarter of 2006, amend and supplement Circular No. 06/2003/TT-NHNN dated April 10, 2003 on guiding certain contents regarding capital contribution to establish credit guarantee funds for small and medium-sized enterprises by organizations, ensuring feasibility in assisting access to investment capital for the development of small and medium-sized enterprises.

5. Ministry of Trade:

a) To lead and coordinate with ministries, sectors, localities, and industry associations to study and amend mechanisms and policies for key national trade promotion programs, unify the direction of implementing trade promotion programs and export promotion programs to enhance effectiveness and facilitate business activities of small and medium-sized enterprises.

b) Collect and disseminate information about markets to serve forecasting work; assist in guiding production and business orientation for small and medium-sized enterprises.

6. Ministry of Natural Resources and Environment:

a) In the first quarter of 2006, review land-related mechanisms and policies, guiding legal documents for the implementation of the Land Law 2003, submit necessary amendments and supplements to competent authorities to resolve existing obstacles hindering businesses from investing in production and business operations, paying particular attention to further facilitating small and medium-sized enterprises in terms of production and business premises. Priority mechanisms should be established for businesses investing in rural areas, difficult regions, and underdeveloped areas.

b) Guide localities to establish or amend regulations on management, exploitation, and utilization of land areas in industrial zones and clusters to facilitate small and medium-sized enterprises in leasing production and business premises.

7. The Ministry of Science and Technology:

a) In the second quarter of 2006, research a proposal to establish a national database, develop appropriate management mechanisms to provide information on technology, equipment, technical standards, and product quality standards to small and medium-sized enterprises, and report to the Prime Minister.

b) In 2006, research a proposal to form a suitable model of a technology enterprise that aligns with establishing a technology market; incentive mechanisms for collaboration between research institutions and production facilities of small and medium-sized enterprises to enable scientific and technological products to be traded like other goods.

c) Lead and coordinate with the Ministry of Finance and relevant ministries to develop appropriate mechanisms to support small and medium-sized enterprises in registering and protecting intellectual property rights for their products and services, buying and selling, contributing capital, and investing through intangible assets such as intellectual property rights.

8. The Ministry of Foreign Affairs:

a) Guide and direct overseas representative offices to research and propose projects and programs to support small and medium-sized enterprises in surveying markets, seeking partners, and promoting their products abroad.

b) Research and propose appropriate solutions to encourage overseas Vietnamese to provide information on science and technology, export markets for products, and information on joint venture and investment partners for small and medium-sized enterprises both entering and exiting Vietnam.

9. Chairpersons of People's Committees of provinces and centrally-administered cities:

a) Direct the Department of Planning and Investment to strengthen organizational structure and allocate capable staff to effectively perform state management functions for promoting the development of small and medium-sized enterprises within their jurisdiction. Strictly guide departments and sectors to implement state policies supporting the development of small and medium-sized enterprises.

b) Proactively build assistance programs for small and medium-sized enterprises within their jurisdiction, prioritizing the implementation of human resource training assistance programs, information provision assistance programs, and technology and technical assistance programs to enhance the competitiveness of small and medium-sized enterprises.

c) Coordinate with the Ministry of Finance and related agencies to promptly establish a credit guarantee fund for small and medium-sized enterprises within their jurisdiction to facilitate access to investment development capital for these enterprises.

10. The Central Council of the Vietnam Union of Cooperatives, the Vietnam Chamber of Commerce and Industry, and organizations of business associations:

a) Promote activities to assist member enterprises in enhancing production and business capacity, product quality, efficiency, and competitiveness.

b) Actively participate in building institutional frameworks, policies, and assistance programs for the development of small and medium-sized enterprises; act as a focal point for consolidating enterprises' recommendations regarding state mechanisms and policies. Actively participate in implementing state assistance programs for small and medium-sized enterprises, contributing to enhancing the capabilities of association members.

c) Connect and organize invitations for enterprises, business associations, and foreign organizations involved in financial provision and business development advisory services to visit Vietnam or assist Vietnamese enterprises in conducting market surveys, understanding partners, exchanging, introducing, and seeking cooperation opportunities for subcontracting, exporting goods and services, etc., from Vietnam to other countries.

d) Coordinate with relevant functional agencies and enhance cooperation with foreign organizations related to financial provision and business development advisory services to create opportunities for member enterprises to expand and develop their production and business operations.

11. For small and medium-sized enterprises:

Proactively develop production and business plans and strategies, research and apply technology, modernize equipment, increase labor productivity, and improve product competitiveness in the market. Adhere strictly to laws, promote business culture. Develop plans to train and improve the quality of managerial human resources, enhance awareness of international integration and competition trends; proactively link and cooperate with domestic and foreign enterprises to expand production and business operations and enhance competitiveness.

The Ministry of Planning and Investment leads and coordinates with the Government Office to monitor and urge the implementation of this Directive, regularly reporting to the Prime Minister on progress, results, and difficulties encountered during implementation, and recommending measures for resolution./.