Policy supporting small, medium and micro enterprises

Decree No. 39_2018_NĐ_CP of the Government detailing a number of articles of the Law on Supporting Small and Medium Enterprises

This Decree prescribes incentives and supports for small and medium-sized enterprises. In particular, thanks to this decree, the determination of what is a small, micro, and medium-sized enterprise was clear and not as vague as before the decree.

Micro enterprises in the fields of agriculture, forestry, fisheries and industry and construction have an average number of employees participating in social insurance on an annual average of no more than 10 people. and total revenue of the year is not more than 3 billion or Total capital is not more than 3 billion dong.

Micro enterprises in the field of commerce and services have an average number of employees participating in social insurance of no more than 10 people per year and total revenue of the year is not more than 10 billion or Total capital is not more than 3 billion dong.

Small enterprises in the fields of agriculture, forestry, fisheries and industry and construction have an average number of employees participating in social insurance of no more than 100 people per year. and total revenue of the year is not more than 50 billion or The total capital is not more than VND 20 billion, but it is not a microenterprise as prescribed in Clause 1 of this Article.

Small businesses in the field of commerce and services have an average number of employees participating in social insurance of no more than 50 people per year and total revenue of the year is not more than 100 billion or The total capital is not more than VND 50 billion, but it is not a microenterprise as prescribed in Clause 1 of this Article.

Medium enterprises in the fields of agriculture, forestry, fishery and industry and construction have an annual average number of employees participating in social insurance of no more than 200 and an annual revenue of no more than VND 200 billion. or the total capital source does not exceed VND 100 billion, but it is not a small enterprise or a micro enterprise as prescribed in Clauses 1 and 2 of this Article.

Medium-sized enterprises in the field of commerce and services have an annual average number of employees participating in social insurance of no more than 100 and total annual revenue of not more than VND 300 billion or total capital of not more than VND 100 billion, but is not a microenterprise, or a microenterprise as prescribed in Clauses 1 and 2 of this Article.

Small and medium-sized enterprises' operation domains are determined based on the provisions of law on the system of economic branches and the provisions of specialized laws.

In the case of activities in many sectors, small and medium-sized enterprises are determined based on the field with the highest revenue. Where the highest revenue field is not available, small and medium-sized enterprises are determined based on the areas with the highest labor use.

1. The number of employees participating in social insurance is the total number of employees managed, used and paid by the enterprise for participation in social insurance under the law on social insurance.

2. The average number of employees participating in social insurance is calculated by the total number of employees participating in social insurance of the year divided by the number of months in the year and determined on the voucher of payment of social insurance of the previous year. adjoining enterprises to social insurance agencies.

In case an enterprise operates less than 01 year, the average number of employees participating in social insurance is calculated by the total number of employees participating in social insurance of the operating months divided by the number of operating months.

The total capital source is determined in the balance sheet shown in the financial statements of the preceding year that enterprises submit to tax administration agencies.

In case the enterprise operates for less than 01 year, the total capital is determined in the enterprise's balance sheet at the end of the quarter preceding the time when the enterprise registered to receive support contents.

Total revenue of the year is the total revenue of goods sale and service provision of enterprises and is determined on the financial statements of the preceding year that enterprises submit to tax administration agencies.

Where an enterprise operates for less than 01 year or more than 01 year but has not generated revenue, the enterprise shall base on the criteria of the total capital source specified in Article 9 of this Decree to identify the small and medium-sized enterprise.

1. Small and medium-sized enterprises shall base themselves on the forms prescribed in the Appendix to this Decree to identify and declare their sizes as micro or small-sized enterprises or medium-sized enterprises and submit them to agencies. , SME support organizations. Small and medium-sized enterprises must be responsible before the law for the declaration.

2. In cases where an enterprise detects that its scale is inaccurate by itself, small and medium-sized enterprises shall adjust and re-declare them. The re-declaration must be made before the time when small and medium-sized enterprises enjoy support contents.

3. In cases where enterprises intentionally declare dishonestly on the scale to get support, they must take responsibility before law and return all the related expenses and expenses for which the enterprises have received supports.

Some of the support that small and medium enterprises enjoy

Small and medium-sized enterprises are free to access information on the National Small and Medium-sized Enterprise Support Portal managed by the Ministry of Planning and Investment and websites of ministries, ministerial-level agencies, and People's Committees of provinces and cities under central authority.

Small and medium-sized enterprises access the network of counselors on the National Portal to support small and medium-sized enterprises, the websites of ministries and ministerial-level agencies to select consultants or consultancy organizations and consulting services tailored to the needs of the business.

Small and medium-sized enterprises must submit application for consulting support to small and medium-sized enterprises. Consultancy documentation is a condition for the SME support agency to consider providing advisory support services for small and medium-sized enterprises.

Support for business start-up training and business administration. The State budget shall support at least 50% of the total cost of a training course on entrepreneurship and business administration for small and medium-sized enterprises;
Students of small and medium-sized enterprises in extremely difficult socio-economic areas, female-owned small and medium-sized enterprises are exempted from tuition fees to attend the training course.

Support for vocational training: Small and medium-sized enterprises which send employees to participate in primary training courses or training programs of less than 03 months are exempt from training expenses. The remaining expenses are agreed by small and medium-sized enterprises and laborers.

Support for direct training at small and medium-sized enterprises Small and medium-sized enterprises operating in the field of manufacturing and processing are supported with 50% of the total cost of a direct training course at enterprises but not more than once. year;

Direct training courses at enterprises with at least 10 students.

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