Decree No. 90/2001/ND-CP On Supporting the Development of Small and Medium Enterprises

DECREE

On supporting the development of small and medium-sized enterprises

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THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

In order to encourage and facilitate the development of small and medium-sized enterprises;

At the proposal of the Minister of Planning and Investment,

DECREE:

Chapter 1:

GENERAL PROVISIONS

Article 1Objective

Developing small and medium-sized enterprises is an important task in the Strategy for Economic and Social Development, accelerating industrialization and modernization of the country,

The State encourages and facilitates small and medium-sized enterprises to enhance their initiative and creativity, improve management capacity, develop science and technology and human resources, expand linkages with other types of enterprises, increase business efficiency and competitiveness in the market; promote production and business, create jobs and improve living standards for workers.

Article 2. Scope of application

Small and medium-sized enterprises enjoy preferential policies under current laws. This Decree stipulates additional support policies and organization of promotion for the development of small and medium-sized enterprises to meet requirements for economic and social development and accelerate industrialization and modernization of the country.

Article 3. Definition of small and medium-sized enterprises

A small and medium-sized enterprise is an independent production and business entity that has registered business according to current laws, with a registered capital not exceeding 10 billion VND or an average annual workforce not exceeding 300 people.

Depending on the specific economic and social conditions of industries and localities, during the implementation of assistance measures and programs, both capital and labor criteria may be flexibly applied simultaneously or one of the two criteria mentioned above.

Article 4. Applicability

This Decree applies to small and medium-sized enterprises including:

Enterprises established and operating under the Enterprise Law;

Enterprises established and operating under the State Enterprise Law;

Cooperatives established and operating under the Cooperative Law;

Individual households registered under Government Decree No. 02/2000/NĐ-CP dated February 3, 2000 on Business Registration.

Article 5Assistance Program

The State's Assistance Program for Small and Medium-Sized Enterprises (referred to as the Assistance Program) is a target program for small and medium-sized enterprises based on the priority orientation for economic and social development, development of industries and areas that need encouragement. This Assistance Program is included in the annual plan and five-year plan decided by the Prime Minister or the Chairman of the People's Committee of provinces and centrally-run cities.

The Assistance Program includes: objectives, specific small and medium-sized enterprises according to industry, field, and area of operation, contents of assistance, resources, plans and measures regarding mechanisms and policies, organization of implementation. Priority is given to assisting small and medium-sized enterprises managed by female entrepreneurs.

Chapter 2:

ASSISTANCE POLICIES

Article 6. Encouraging Investment

1. The Government assists investment through financial and credit measures applicable for a certain period for small and medium-sized enterprises investing in certain industries, including traditional industries and in areas that need encouragement.

2. The Government encourages financial organizations, enterprises, and individuals to contribute capital to invest in small and medium-sized enterprises.

Article 7. Establishing a Guarantee Fund for Small and Medium-Sized Enterprises' Credit

Establishing a Guarantee Fund for Small and Medium-Sized Enterprises to guarantee loans for these enterprises when they lack collateral or pledges to borrow from financial institutions.

The Ministry of Finance shall take the lead and coordinate with relevant agencies to draft a proposal on the organization and operational regulations of the Guarantee Fund for Small and Medium-Sized Enterprises to be submitted to the Prime Minister for decision.

Article 8Production Sites

Based on the planning for economic and social development and land use planning and plans approved by the Prime Minister, the Chairman of the People's Committee of provinces and centrally-run cities creates favorable conditions for small and medium-sized enterprises to have suitable production sites; directs the allocation of land and implements incentive policies to build industrial zones and clusters for small and medium-sized enterprises to concentrate their production facilities or relocate from urban centers, ensuring environmental aesthetics.

Small and medium-sized enterprises enjoy preferential policies in leasing, transferring, mortgaging, and other rights related to land use according to the provisions of the law.

Article 9. Market and Enhancing Competitiveness

1. Ministries, sectors, provincial and centrally-run city People's Committees direct and create conditions for small and medium-sized enterprises to access information about markets and commodity prices, assist these enterprises in expanding markets and selling products.

2. Localities assist in displaying, introducing, advertising, and marketing potential products of small and medium-sized enterprises to create opportunities to expand markets.

3. The Government creates conditions for small and medium-sized enterprises to participate in supplying goods and services according to the government procurement plan funded by the state budget; ministries, sectors, and localities prioritize placing orders and quotas for small and medium-sized enterprises producing goods and services that meet quality requirements.

4. The Government encourages the development of subcontracting, strengthening cooperation between small and medium-sized enterprises and other enterprises in joint production, component manufacturing, receiving construction contracts, etc., to promote technology transfer, expand product sales markets, and enhance the competitiveness of small and medium-sized enterprises.

5. Through assistance programs, the Government creates conditions for small and medium-sized enterprises to innovate technology, equipment, machinery, develop new modern products, and modernize management to improve product quality and enhance competitiveness in the market.

Article 10Export Promotion

1. The State encourages small and medium enterprises to enhance exports, creates favorable conditions for these enterprises to cooperate and link with foreign entities, expand export markets for goods and services. Through export promotion assistance programs, partially subsidizes costs for small and medium enterprises to conduct surveys, learn, exchange cooperation, and participate in trade fairs and exhibitions to introduce products and understand foreign markets. Assistance costs are allocated from the Export Support Fund.

2. Ministries and sectors create favorable conditions for small and medium enterprises to participate in national export programs.

Article 11. On information, advisory services, and human resource training

1. The Government, ministries, sectors, and local people's committees provide necessary information through publications and the internet to small and medium enterprises, through the Ministry of Planning and Investment (Small and Medium Enterprise Development Agency) coordinating with relevant agencies and social organizations to assist small and medium enterprises.

2. The Government provides financial assistance for advisory services and human resource training for small and medium enterprises through a training support program. Training assistance funds are allocated from the state budget for education and training.

3. The Government encourages domestic and international organizations to assist small and medium enterprises in providing information, advisory services, and human resource training.

4. The Government encourages the establishment of "small and medium enterprise incubators" to guide and train entrepreneurs in the initial stages of establishing businesses.

Chapter 3:

ORGANIZATION FOR PROMOTING THE DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES

Article 12. Establishing the Small and Medium Enterprise Development Agency

Establishing the Small and Medium Enterprise Development Agency under the Ministry of Planning and Investment to assist the Minister of Planning and Investment in performing state management functions regarding the promotion of small and medium enterprise development.

Article 13. The Small and Medium Enterprise Development Agency has the main tasks and powers as follows:

1. Assist the Minister of Planning and Investment in guiding small and medium enterprise promotion work: drafting or participating in drafting policies, regulatory legal documents on promoting small and medium enterprise development, submitting them to competent authorities for issuance; compiling and building assistance programs, listing specific small and medium enterprise targets according to industry, field, operating area, and assistance content; coordinating, guiding, and inspecting the implementation of approved assistance programs.

2. Organizing training to enhance the capacity of staff from small and medium enterprise support organizations and improving skills in promoting small and medium enterprise development.

3. Implementing international cooperation in promoting small and medium enterprise development, through balancing resources and calling for external capital to assist small and medium enterprises.

4. Cooperating with related agencies and organizations to provide necessary information to small and medium enterprises.

5. Cooperating with related agencies and organizations to promote assistance to small and medium enterprises in technical consulting and access to new technology and equipment, guiding and training in technical operation and business management.

6. Reporting periodically every six months on the development of small and medium enterprises and issues requiring resolution for submission by the Minister of Planning and Investment to the Prime Minister.

7. Serving as the permanent secretary of the Council for Encouraging the Development of Small and Medium Enterprises.

8. Performing other state management activities regarding the promotion of small and medium enterprise development as assigned by the Minister of Planning and Investment.

Article 14. Organizational structure and operational regulations of the Small and Medium Enterprise Development Agency

1. The Minister of Planning and Investment shall specify in detail the tasks, powers, and organizational structure of the Small and Medium Enterprise Development Agency. The staffing and operating budget of the Small and Medium Enterprise Development Agency shall be decided by the Minister of Planning and Investment after consultation with the Minister of Home Affairs, the Chairman of the Civil Service Committee of the Government, and the Minister of Finance based on the principle of using personnel during the restructuring of the Ministry of Planning and Investment to establish an efficient and streamlined agency structure that meets the requirements of intensifying small and medium enterprise development promotion activities in the current situation.

2. The operating budget of the Small and Medium Enterprise Development Agency is funded from the state budget and included in the annual budget estimate of the Ministry of Planning and Investment.

Article 15. Establishing the Council for Encouraging the Development of Small and Medium Enterprises

1. Establishing the Council for Encouraging the Development of Small and Medium Enterprises to advise the Prime Minister on mechanisms and policies to encourage small and medium enterprise development. Members of the Council operate on a part-time basis. The Prime Minister decides the functions, tasks, and members of the Council upon the proposal of the Council Chair.

2. The composition of the Council for Encouraging the Development of Small and Medium Enterprises includes:

The Chair of the Council for Encouraging the Development of Small and Medium Enterprises is the Minister of Planning and Investment.

Permanent Secretary of the Council: Director of the Small and Medium Enterprise Development Agency.

Representatives from Ministries: Planning and Investment, Industry, Finance, Agriculture and Rural Development, Construction, Transport, Trade, Science, Technology and Environment, Education and Training, Labor, Invalids and Social Affairs, Justice.

Representatives from the People's Committees of Hanoi City, Ho Chi Minh City, Hai Phong City, and Da Nang City.

Representatives from the Vietnam Chamber of Commerce and Industry, the Central Council of the Vietnam Federation of Trade Unions, and some business associations.

Some experts in economic, science and technology, and training fields.

3. Operational regulations of the Council are decided by the Council Chair.

4. The Council's operating budget is included in the budget of the Small and Medium Enterprise Development Agency.

Article 16. Establishing the Technical Support Center for Small and Medium Enterprises

The Ministry of Planning and Investment establishes Technical Support Centers for Small and Medium Enterprises (under the Small and Medium Enterprise Development Department) in Hanoi City, Ho Chi Minh City, and Da Nang City.

The Technical Support Center for Small and Medium Enterprises is a service unit with revenue, having the function of consulting for the Small and Medium Enterprise Development Department and serving as the focal point for consulting on technology and engineering, improving equipment, guiding technical management and maintenance of equipment, facilitating access to new technology and equipment for small and medium enterprises.

The Ministry of Planning and Investment develops a project to organize and promulgate the Operational Regulations of these centers after reaching agreement with the Government’s Organizational and Cadre Affairs Board and relevant agencies.

Article 17. Promoting small and medium enterprises at local levels

Provincial People's Committees and municipal people's committees under the central government promote the development of small and medium enterprises within their jurisdictions with the main tasks as follows:

Directing promotional activities for small and medium enterprises; drafting or participating in drafting guidance documents to implement the regulations of the Government, Prime Minister, and the Ministry of Planning and Investment regarding the promotion of small and medium enterprises at the local level. Summarizing and developing assistance programs for small and medium enterprises; coordinating, guiding, and supervising the implementation of approved assistance programs.

Every six months, compiling and reporting to the Ministry of Planning and Investment on the development of small and medium enterprises and issues that need to be resolved.

Coordinating with related ministries and sectors to implement promotional activities for small and medium enterprises at the local level according to current regulations.

Article 18. Organizations assisting small and medium enterprises

1. The Government encourages the establishment and consolidation of organizations assisting small and medium enterprises under state agencies, political-social organizations, and occupational social organizations, aiming to implement assistance programs effectively and efficiently.

2. The Government encourages and creates conditions for small and medium enterprises to participate in existing business associations and establish new business associations and clubs, implementing activities including attracting foreign resources to provide practical and direct assistance to small and medium enterprises, information services, market expansion, training, technology... enhancing the production and business efficiency of small and medium enterprises.

3. Ministries, sectors, and local people's committees have the responsibility to regularly meet and resolve emerging issues in production and business with small and medium enterprises; organizing the participation of business associations in the drafting process of regulatory legal documents related to small and medium enterprises.

4. Business associations and clubs operate in accordance with the provisions of the law.

Chapter 4:

IMPLEMENTING PROVISIONS

Article 19. Effectiveness

This Decree takes effect fifteen days from the date of signature.

Article 20. Responsibility for Implementation

1. The Ministry of Planning and Investment is responsible for coordinating with relevant ministries and agencies to implement subsequent tasks, guiding, monitoring, urging the implementation of this Decree, and reporting to the Prime Minister on the implementation status and new issues arising that need to be addressed.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of People's Committees of provinces and centrally-administered cities shall be responsible for implementing this Decree.