Decree No. 56/2009/ND-CP on Supporting the Development of Small and Medium-sized Enterprises (SMEs)

DECREE

Regarding support for the development of small and medium-sized enterprises

 __________________

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Enterprise Law and Investment Law dated November 29, 2005;

The Prime Minister issues this Decision on principles, criteria, and allocation standards for state budget investment capital development phase 2016-2020.

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates policies and state management regarding support for the development of small and medium-sized enterprises.

Article 2. Applicability

This Decree applies to small and medium-sized enterprises, organizations providing support for the development of small and medium-sized enterprises, and state agencies managing support for the development of small and medium-sized enterprises.

Article 3. Definition of small and medium-sized enterprises

1. Small and medium-sized enterprises are business establishments that have registered their operations according to the law, divided into three levels: micro, small, and medium, based on the total capital (total capital equivalent to total assets determined in the enterprise's balance sheet) or average annual number of employees (total capital is the preferred criterion), specifically as follows:

2. Depending on the nature and objectives of each policy or program, the competent authority may specify the above criteria appropriately.

3. The Ministry of Planning and Investment (General Statistics Office) shall take the lead, coordinate with relevant ministries, sectors, and agencies to conduct surveys, compile, and publish statistical data on small and medium-sized enterprises annually according to the definition of small and medium-sized enterprises stipulated in this Decree.

Article 4. Support Development Plan for Small and Medium-Sized Enterprises

The support development plan for small and medium-sized enterprises, including solutions and implementation budgets, must be included in the annual and five-year plans of ministries, sectors, localities, and the national economy.

Article 5. Support Programs

1. The State's support program for small and medium-sized enterprises (referred to as the support program) is a targeted program for small and medium-sized enterprises built based on economic and social development orientations, industry development, and regional planning, and allocated within the annual and five-year plans. Priority should be given to supporting small and medium-sized enterprises owned by women and those employing many female workers.

2. Before submitting support programs for small and medium-sized enterprises to the competent authority for approval, opinions of the central state agency responsible for supporting the development of small and medium-sized enterprises as stipulated in Article 15 of this Decree must be sought to ensure consistency and integration with other State support programs for small and medium-sized enterprises.

3. Ministries, sectors, and localities shall develop and implement support programs in their respective fields and regions. The Ministry of Planning and Investment is the focal agency to compile reports on the implementation of support programs and issues requiring resolution to submit to the Prime Minister.

4. Based on the nature and scope of each support program, state-run organizations and service providers with sufficient capacity may participate in implementing the program through bidding procedures as prescribed by law.

Article 6. Issuance of regulations related to small and medium-sized enterprises

The agency responsible for drafting normative legal documents related to small and medium-sized enterprises shall coordinate with state management agencies at the central level on assisting the development of small and medium-sized enterprises as stipulated in Article 15 of this Decree to ensure that these legal documents create favorable conditions for the development of the small and medium-sized enterprise sector.

Chapter II

SUPPORT POLICY

Article 7. Financial Assistance

1. The State encourages the establishment of credit guarantee funds for small and medium-sized enterprises. The Ministry of Finance shall take the lead and coordinate with relevant agencies to develop mechanisms for the establishment and operation of credit guarantee funds to be submitted to the Prime Minister for decision-making and guidance on implementing credit guarantee services for small and medium-sized enterprises.

2. The State Bank shall take the lead and coordinate with relevant agencies to submit to the Prime Minister mechanisms to encourage and allocate certain technical assistance projects to enhance the capacity of financial organizations suitable for expanding credit to small and medium-sized enterprises; diversify products and services suitable for small and medium-sized enterprises; provide financial advisory, investment management, and other support services to customers who are small and medium-sized enterprises.

3. Through training assistance programs, the State supports small and medium-sized enterprises in enhancing their capacity to develop project proposals and business plans to meet the requirements of credit institutions when assessing loan applications from small and medium-sized enterprises.

4. Establishment of the Small and Medium-Sized Enterprise Development Fund

a) Purpose of operation: to finance programs aimed at enhancing the competitiveness of small and medium-sized enterprises, focusing on supporting activities to innovate and develop competitive and environmentally friendly products; investing in and modernizing technical equipment and advanced technology; developing supportive industries; enhancing corporate management capabilities.

b) Sources of capital for the Small and Medium-Sized Enterprise Development Fund (referred to as the Fund): capital allocated from the state budget; contributions from domestic organizations; grants and sponsorships from foreign organizations and international organizations; profits from the Fund's operations and other lawful sources of capital.

c) Main activities:

- Receiving, managing, and utilizing domestic and foreign financial resources to implement support activities for the development of small and medium-sized enterprises in accordance with the law.

- Financing costs for programs and projects aimed at enhancing the competitiveness, technical capabilities, technological capabilities, and corporate management capabilities of small and medium-sized enterprises implemented by ministries, sectors, localities, and business associations after being approved by competent authorities.

- Entrusting financial institutions to provide preferential loans to small and medium-sized enterprises with feasible investment projects in priority and encouraged fields by the State and consistent with the Fund's purpose of operation.

d) The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance, the State Bank, and relevant agencies to develop a proposal for establishing the Fund to be submitted to the Prime Minister for consideration and approval; ensuring the Fund operates according to its intended purpose.

đ) The Ministry of Finance shall issue financial management regulations for the Fund and monitor and supervise the Fund's financial activities.

Article 8. Production Land

Based on the public disclosure of economic and social development plans and land use plans and programs approved by the Prime Minister, the People's Committees of provinces and centrally governed cities allocate land and implement measures to encourage the construction of industrial zones and clusters for small and medium enterprises to lease as production and business premises or to relocate from downtown areas to ensure environmental aesthetics.

Article 9. Innovation and Improvement of Technological Capacity and Technical Level

1. Through assistance programs, the Government implements appropriate support policies in line with the strategic priorities of economic development at each stage as follows:

a) Encouraging investment in technological innovation and upgrading technical equipment according to the development and expansion strategies of small and medium enterprises for export products and supporting industrial products.

b) Enhancing the technological capacity of small and medium enterprises through research and development support programs for new product technologies, technology transfer, and the application of scientific and technological progress in production.

c) Introducing and providing information about technology and equipment to small and medium enterprises, supporting evaluations and selections of technology.

2. The National Science and Technology Development Fund annually allocates a portion of its budget to support small and medium enterprises in technological innovation and capacity enhancement.

3. The Ministry of Science and Technology and the People's Committees of provinces and centrally governed cities develop plans and allocate funds to support small and medium enterprises in registering and protecting intellectual property rights for products and services, applying quality management systems according to ISO standards and other international standards.

Article 10. Promoting Market Expansion

1. Each year, ministries, sectors, and localities develop plans and allocate funds to implement activities promoting market expansion for small and medium enterprises.

2. The national agency responsible for trade promotion annually allocates a portion of the national trade promotion budget to small and medium enterprises and reports the results to the state management agency responsible for assisting the development of small and medium enterprises as stipulated in Article 15 of this Decree.

Article 11. Participation in Public Procurement and Service Provision

1. The Government and the People's Committees of provinces and centrally governed cities reserve a certain percentage for small and medium enterprises to fulfill contracts or orders to provide certain goods and public services.

2. The Prime Minister issues mechanisms to encourage small and medium enterprises to participate in the provision of public products and services upon the proposal of the Ministry of Finance.

Article 12. Information and Advisory Services

1. The Government, ministries, sectors, and the People's Committees of provinces and centrally governed cities provide information through electronic portals about laws regulating enterprise activities, development support policies and programs for small and medium enterprises, and other information supporting business operations.

2. At least thirty working days before implementing development support policies and programs for small and medium enterprises, the leading agency is responsible for sending information about these policies and programs to the Enterprise Portal of the state management agency responsible for assisting the development of small and medium enterprises as stipulated in Article 15 of this Decree to announce to the public.

3. The Ministry of Planning and Investment mobilizes domestic and foreign resources to upgrade the Enterprise Portal to provide and connect information on enterprise development support.

4. The Government encourages organizations both within and outside the country to provide advisory services to small and medium enterprises.

Article 13. Human Resource Development Assistance

1. The Ministry of Planning and Investment shall take the lead and coordinate with relevant agencies to guide the development of plans for human resource training assistance for small and medium-sized enterprises, focusing mainly on business management.

2. Plans for human resource training assistance for small and medium-sized enterprises by ministries, sectors, and localities shall be integrated into their annual and five-year socio-economic development plans.

3. The Ministry of Planning and Investment shall take the lead and compile the demand for training assistance for small and medium-sized enterprises as a basis for the Ministry of Finance to balance and allocate financial support within the annual budget plans of ministries, sectors, and localities.

Article 14. Business Incubators

1. The State encourages the establishment of business incubators to provide time-limited support to businesses during the start-up phase through systematic processes by providing incubated businesses with space, business support services, and necessary resources to help them realize and commercialize business ideas and technology.

2. The Ministry of Science and Technology shall take the lead and coordinate with relevant agencies to develop policies prioritizing small and medium-sized enterprises participating in "technology incubation centers" and "business technology incubation centers."

Chapter III

STATE MANAGEMENT OF SMALL AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT ASSISTANCE

Article 15. Central State Management Agencies for Small and Medium-Sized Enterprise Development Assistance

1. The Government shall uniformly manage state administration in promoting the development of small and medium-sized enterprises. The Ministry of Planning and Investment shall be the agency assisting the Government in uniformly managing state administration for the development of small and medium-sized enterprises.

2. The Enterprise Development Department under the Ministry of Planning and Investment shall assist the Minister of Planning and Investment in performing state management functions regarding the development of small and medium-sized enterprises as follows:

a) Developing or participating in the development of policies and legal normative documents on the development of small and medium-sized enterprises for submission to competent authorities for issuance; compiling plans, programs, assistance orientations, setting criteria, and areas to assist small and medium-sized enterprises.

b) Organizing training to enhance the capacity of staff involved in small and medium-sized enterprise assistance work, nurturing skills in developing small and medium-sized enterprises, and guiding the construction and enhancement of capacity for small and medium-sized enterprise development assistance systems.

c) Serving as the focal point for international cooperation in small and medium-sized enterprise development, soliciting external resources to assist small and medium-sized enterprises.

d) Coordinating with related agencies and organizations to provide necessary information to small and medium-sized enterprises. Preparing annual reports on small and medium-sized enterprises. Compiling reports on the development situation of small and medium-sized enterprises and issues requiring resolution for the Minister of Planning and Investment to submit to the Prime Minister for consideration and handling. Implementing pilot models, programs, and projects to assist in the development of small and medium-sized enterprises.

đ) Performing the role of permanent secretary of the Council for Encouraging the Development of Small and Medium-Sized Enterprises.

Article 16. Board for Encouraging the Development of Small and Medium-sized Enterprises

1. The Board for Encouraging the Development of Small and Medium-sized Enterprises (referred to as the Board) shall advise the Prime Minister on mechanisms and policies to encourage the development of small and medium-sized enterprises. Members of the Board serve concurrently. The Prime Minister decides the tasks of the Board based on the proposal of the Chairman of the Board.

2. The composition of the Board for Encouraging the Development of Small and Medium-sized Enterprises includes:

- The Chairman of the Board is the Minister of Planning and Investment;

- The permanent secretary of the Board is the Director of the Enterprise Development Department.

- Representatives of the leadership of the Ministries of Planning and Investment, Industry and Trade, Finance, Justice, Agriculture and Rural Development, Construction, Transport, Science and Technology, Natural Resources and Environment, Education and Training, Labor, Invalids and Social Affairs; Steering Committee for Enterprise Reform and Development.

- Representatives of the leadership of the People's Committees of Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, and Can Tho.

- Representatives of the leadership of the Vietnam Chamber of Commerce and Industry, the Vietnam Federation of Trade Unions, the Vietnam Association of Small and Medium-sized Enterprises, and some other business associations.

- Some experts from economic, science and technology fields, based on the proposals of the competent authorities.

3. The list of members of the Board is decided by the Chairman of the Board based on the proposals of the competent authorities.

4. Depending on the practical needs of assisting the development of small and medium-sized enterprises and the proposals of the members, the Chairman of the Board may establish several specialized sub-committees under the Board with the task of advising on areas that need assistance for small and medium-sized enterprises. The structure of members and working regulations of the sub-committees are decided by the Chairman of the Board.

5. The working regulations of the Board are decided by the Chairman of the Board.

6. The operating budget of the Board is included in the budget of the Enterprise Development Department.

Article 17. Center for Promoting the Development of Small and Medium-sized Enterprises

The Ministry of Planning and Investment establishes the Center for Promoting the Development of Small and Medium-sized Enterprises (under the Enterprise Development Department) to implement certain policies and programs to assist, act as a consulting point, and pilot technical assistance models for small and medium-sized enterprises.

Article 18. State Management Agency for Assisting the Development of Small and Medium-sized Enterprises at Local Level

1. Provincial People's Committees have the responsibility to assist in the development of small and medium-sized enterprises within their jurisdiction, specifically as follows:

a) Directing the work of developing small and medium-sized enterprises; drafting or participating in drafting guiding documents to implement state regulations on assisting the development of small and medium-sized enterprises at the local level. Compiling and building assistance programs for small and medium-sized enterprises; coordinating, guiding, and inspecting the implementation of these programs after approval.

b) Organizing dialogues between local authorities and enterprises to exchange information, resolve difficulties and obstacles in the business operations of small and medium-sized enterprises; commending and rewarding artisans, entrepreneurs, and small and medium-sized enterprises with outstanding achievements in business, creativity in design, and vocational training.

c) Annually reporting to the Ministry of Planning and Investment on the situation of assisting the development of small and medium-sized enterprises and issues requiring resolution to compile the annual report on small and medium-sized enterprises.

d) Cooperating with ministries, sectors, and related organizations to implement assistance for the development of small and medium-sized enterprises at the local level according to current regulations.

2. Provincial People's Committees assign the Department of Planning and Investment to be the focal point, coordinating with departments and sectors to develop programs and plans for the development of small and medium-sized enterprises within their jurisdiction to submit to the provincial People's Committee for approval, issuance, and organization of implementation. For localities with more than 3,000 small and medium-sized enterprises (excluding cooperatives and individual businesses), a unit directly under the Department of Planning and Investment may be established to perform functions and tasks related to assisting the development of small and medium-sized enterprises at the local level.

Article 19. Organizations assisting small and medium-sized enterprises

The Government encourages associations, economic organizations, political social occupational organizations, and social organizations to establish and strengthen organizations that assist in developing small and medium-sized enterprises, participate in building and implementing assistance programs for small and medium-sized enterprises; develop business development services (BDS).

Chapter IV

IMPLEMENTING PROVISIONS

Article 20. Effective Date

1. This Decree takes effect from August 20, 2009, and replaces Government Decree No. 90/2001/NĐ-CP dated November 23, 2001, on assistance for the development of small and medium-sized enterprises.

Article 2. Abolish previous provisions that conflict with this Decree.

Article 21. Responsibility for Implementation

1. The Ministry of Planning and Investment shall be responsible for coordinating with ministries, sectors, provincial People's Committees under the central government in implementing this Decree, reporting to the Prime Minister on the implementation status and new issues arising that require resolution.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree./.