Promoting SME development: Don't say no, don't say difficult, don't say yes but don't do it

The Directive clearly states that, in order to remove barriers and difficulties and create maximum conditions for SMEs to make breakthroughs, the Prime Minister requests Ministers, Heads of ministerial-level agencies, Government agencies, Chairmen of People's Committees of provinces and centrally-run cities and relevant agencies to continue to resolutely, synchronously and effectively implement the proposed viewpoints, orientations, goals, tasks and solutions.

Strive to have at least 1 million more businesses by 2030

In particular, it is required to drastically implement the goal of developing SMEs quickly and sustainably, increasing in quantity, quality, scale, operational efficiency and making important contributions to the economy. Strive to have at least 1 million more enterprises by 2030.

Prioritize the allocation of resources to support the development of SMEs, focusing on supporting innovative start-up SMEs, improving their competitiveness in participating in the value chain; digital transformation, green transformation, developing new business models; promoting the application of technology, innovation and digital transformation.

Relevant ministries, branches and localities should uphold their sense of responsibility, taking people and businesses as the center to proactively support, accompany and resolve problems in the spirit of "not saying no, not saying difficult things, not saying yes but not doing", "not criminalizing economic relations and civil relations"; have high determination, make great efforts, take drastic actions, assign specific tasks in the spirit of "clear people, clear work, clear responsibilities, clear authority, clear time, clear results"...

According to the Directive, one of the key tasks is to perfect policies and laws, reform administrative procedures, and create a favorable and equal investment and business environment for small and medium enterprises.

Minimize administrative procedures, requiring at least 30% reduction in administrative procedure processing time by 2025; at least 30% reduction in compliance costs; and at least 30% abolition of unnecessary business conditions. Strongly shift management from "pre-inspection" to "post-inspection", associated with strengthening inspection and supervision.

Focus on administrative reform, quickly resolve investment procedures, remove difficulties and obstacles for businesses and projects. Promote the development of e-Government and digital Government to help businesses access information and public services conveniently and quickly.

The Ministry of Finance urgently completes the draft amendments to the Law on Enterprises, the Law on State Budget, the Law on Corporate Income Tax, and the Law on Special Consumption Tax; submits them to the Government to ensure timely submission to the National Assembly for consideration and approval at the 9th session of the 15th National Assembly as prescribed to thoroughly overcome current shortcomings and problems.

Research and propose a legal framework to manage and promote the healthy and effective development of digital assets, crypto assets, and digital currencies, and submit it to the Government in March 2025.

The Ministry of Science and Technology urgently completes the draft Law on Science, Technology and Innovation, the revised Law on Technical Standards and Regulations, and submits them to the Government to ensure timely submission to the National Assembly for consideration and approval at the 9th session of the 15th National Assembly as prescribed.

The Ministry of Industry and Trade shall research, develop, and propose to the Government to submit to the National Assembly for inclusion in the National Assembly's Law and Ordinance Development Program in 2025 the draft Law on Production of Key Industrial Products to promote the development of key industries in line with the context of science, technology, and innovation; report to the Government in the second quarter of 2025.

Support access to finance and credit

The Prime Minister assigned the Ministry of Finance to find effective solutions to promote lending activities of the SME Development Fund to create a channel for capital mobilization at reasonable costs for SMEs.

Thoroughly simplify processes, procedures, and documents to support tax incentives and value-added tax refunds for businesses; research and apply post-audit methods so that SMEs are not affected in terms of cash flow and business operations.

The State Bank of Vietnam resolutely implements credit programs and policies for enterprises under the direction of the Government and the Prime Minister; prioritizes stabilizing interest rates; operates monetary policies proactively and flexibly but appropriately and effectively, creating confidence for enterprises; coordinates with ministries, branches and localities to promptly remove obstacles in the implementation process.

Focusing credit on production and business sectors, priority sectors and traditional economic growth drivers (consumption, investment, export) and new growth drivers (digital transformation, green transformation, circular economy, sharing economy, science, technology and innovation, etc.); strictly controlling credit for potentially risky sectors, ensuring safe and effective credit operations.

Support to improve human resource quality, digital transformation

The Prime Minister requested ministries, branches and localities to effectively implement activities to support the training of high-quality human resources for SMEs, focusing on training to improve qualifications and professional skills for employees at enterprises; in-depth training in business administration; training according to actual needs at enterprises; and online training for enterprises.

Promote the implementation of programs and solutions to support SMEs in innovation, digital transformation, green transformation, development of new economic models (circular economy, creative economy, sharing economy), emerging industries and fields (artificial intelligence, big data, cloud computing, new energy, biomedicine, cultural industry, entertainment industry...).

Along with that, regarding the planning and development of infrastructure to facilitate the development of SMEs, the Prime Minister requested ministries, branches and localities to focus on effectively implementing the plans and plans to implement the issued plans; develop economic corridors, industrial - urban - service belts close to new centers (such as Long Thanh airport, international financial center); proactively propose solutions to develop new industries (semiconductors, chips...), thereby leading and supporting the activities of SMEs.

At the same time, strive to achieve the disbursement rate of public investment capital in 2025 to reach over 95% of the assigned plan, with special priority given to important and urgent projects, strategic infrastructure projects, and regional and national connectivity projects.

Improve the quality of investment preparation for projects for the 2026 - 2030 period, especially strategic infrastructure projects, the North - South high-speed railway, international connecting railways, urban railways, international transit seaports, etc.; especially promote investment by economic groups, state-owned corporations, and large enterprises to create driving forces, spread, and activate investment by SMEs.

The Directive also requires further promoting the role of the Vietnam Association of Small and Medium Enterprises and business associations and industry associations in improving the effectiveness of the role of connecting the business community; participating in giving opinions, building and criticizing policies; monitoring, supervising and independently evaluating the process of building and implementing laws and development programs, plans and projects of the State related to small and medium enterprises; representing and protecting the rights of members in disputes.

At the same time, promote activities and improve the quality of support for the development of small and medium enterprises; develop the team of entrepreneurs; pioneer in promoting the building of Vietnamese business culture; strengthen connections and improve the effectiveness of international integration; strengthen connection activities, support the development of members, build a united and strong business community for a strong Vietnam.

The private economic sector, with a focus on SMEs (accounting for about 98% of the total number of enterprises operating in the economy), has always played a very important role in socio-economic development. The private economic sector contributes more than 50% of GDP, 30% of total state budget revenue, and creates more than 40 million jobs (accounting for more than 82% of the total number of workers in the economy). However, SMEs still face many difficulties and challenges in developing rapidly and sustainably in terms of quantity, scale, quality, and operational efficiency.

Sharing at the workshop “Bank capital contributes to promoting the private economy” recently organized by Banking Times, Dr. Le Duy Binh - Director of Economica Vietnam said that a major problem of the private sector is the imbalance in the business structure when over 97% of operating businesses are small and micro enterprises, only 1.5% are medium-sized enterprises and 1.5% are large enterprises. The absence of medium-sized enterprises is a major obstacle to the sustainable development of the economy, because these enterprises are an important bridge between small and large enterprises, helping to create links in the value chain and improve the competitiveness of the economy.

In addition, the majority of the private economy in Vietnam is still in the informal sector with more than 5 million individual business households. These business households contribute significantly to GDP but do not have a clear legal status, causing many difficulties in accessing credit and long-term development. Therefore, strong and breakthrough policies are needed to unlock resources, create a favorable business environment and promote entrepreneurial spirit so that the private economy can truly become the main driving force of the economy.

Source: https://thoibaonganhang.vn/thuc-day-phat-trien-dnnvv-khong-noi-khong-khong-noi-kho-khong-noi-co-ma-khong-lam-161860.html