The Ministry of Planning and Investment (MPI) has suggested a number of incentives for small and medium-sized enterprises (SMEs), including the establishment of a fund to help SMEs improve their competitiveness.
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| Vietnam’s Prime Minister Nguyen Tan Dung (L) is welcomed by his Japanese counterpart Yoshihiko Noda prior to their talks at Noda’s official residence in Tokyo on Monday. Dung is on a four-day official visit to Japan. |
The Government plans to carry out measures to create new land fund and facilitate access to capital for small and medium-sized enterprises over the next five years.
These are just two of six measures recently announced by the Government in Resolution No 22/NQ-CP on supportive measures for small and medium-sized enterprises (SMEs).
The other measures include developing a plan for the development of SMEs for the next five years, reforming administrative procedures, helping the SMEs to strengthen competitiveness and reinforcing supportive measures.
The resolution has been issued in order to help SMEs overcome difficulties such as small scale production, out of date technology and weak administrative capacity, and help them to get past obstacles that deny them access to land and capital.
Meanwhile, the State Bank of Viet Nam (SBV) has been ordered to continue the implementation of measures to adjust monetary policies in order to manage credit activities to serve demands for capital from SMEs.
In the fourth quarter, the Ministry of Planning and Investment, in collaboration with the Ministry of Finance (MoF) and SBV, will draft a proposal for an SME development fund.
The MoF is also expected to submit a Supplementary Decree to the Government on investment and export credits, which gives priority to SMEs.
Regarding the obstacles in competitiveness and access to credit sources, the Government has ordered the Ministry of Labour, Invalids and Social Affairs to research and widen the beneficiaries of loans and their for effective projects to create employment.
Also in 2010, the Ministry of Agriculture and Rural Development has been assigned to develop a programme to support SMEs in agriculture for the period 2011-15. Measures to heighten the competitiveness for enterprises in rural areas and traditional craft villages will be given priorities. This will include preferential income tax rates and a land use fee waiver or reduction.
The SME supporting fund is designed to assist in the development of products that are competitive and environmentally friendly, equipment modernisation, application of advanced technologies and improvement of corporate management.
The fund will be allowed to mandate credit organisations to provide preferential loans for SMEs to carry out feasible projects that are in prioritised fields and in line with the fund’s purpose.
(Source: SGT)
