New regulations on supporting small and medium enterprises

LEGAL UPDATES

New regulations on supporting small and medium enterprises

On August 26th, 2021, the Government issued Decree No. 80/2021/ND-CP to detail and guide the implementation of some provisions of the Law on Supporting Small and Medium Enterprises (“Decree 80/2021/ND-CP”). The Decree will take effect from October 15th, 2021 and will replace Decree 39/2018/ND-CP dated March 11th, 2018 with the following new points:

(I) Changing the way to specify small and medium enterprises 

The operation field of small and medium enterprises shall be determined solely on the basis of the main business line that the enterprise has registered with the business registration agency. 

(ii) Supplementing Technology support for small and medium enterprises, specifically as follows:

  • Supporting up to 50% of the value of the advisory contract for digitalization of the enterprise in terms of business processes, administration processes, manufacturing processes, technological processes and conversion of the business model but not exceeding 50 million VND/contract/year for each small enterprise and not exceeding 100 million VND/contract/year for each medium enterprise.
  • Supporting up to 50% of the cost of leasing, buying solutions for digitalization for automation, improvement of efficiency of business processes, administration processes, manufacturing processes, technological processes in the enterprise and conversion of the business model but not exceeding 20 million VND/year for each micro-enterprise; not exceeding 50 million VND/year for each small enterprise and not exceeding 100 million VND/year for each medium enterprise.
  • Supporting up to 50% of the value of the advisory contract for the establishment of intellectual property rights; management and development of products and services with protected intellectual property rights but not exceeding 100 VND/contract/year/enterprise.
  • Supporting up to 50% of the value of the advisory contract for technology transfer that is appropriate for the enterprise but not exceeding 100 VND/contract/year/enterprise.

(iii) Increasing the support level of Counseling Support:

  • Supporting 100% of the value of the advisory contract but not exceeding 50 million VND/year/enterprise for micro-enterprises, or not exceeding 70 million VND/year/enterprise for micro-enterprises owned by women or micro-enterprises employing more female employers and micro-enterprises that are social enterprises; 
  • Supporting up to 50% of the value of the advisory contract but not exceeding 100 million VND/year/enterprise for small enterprises, or not exceeding 150 million VND/year/enterprise for small enterprises owned by women or small enterprises employing more female employers and small enterprises that are social enterprises; 
  • Supporting up to 30% of the value of the advisory contract but not exceeding 150 million VND/year/enterprise for medium enterprises, or not exceeding 200 million VND/year/enterprise for medium enterprises owned by women or medium enterprises employing more female employers and medium enterprises that are social enterprises.

The group of micro, small and medium enterprises owned by women or employing many female employers or small and medium enterprises that are social enterprises are supplemented groups supported when using consulting services.

(iv) Supplementing Online training on start-up and business administration: 

  • Exemption of fees for access and participation in existing lectures on the online training systems of the Ministry of Planning and Investment and the People’s Committees of provinces. 
  • Exemption of fees for participation in online training courses, direct interaction with SMEs via existing teaching tools on smart devices of participants (Zoom Cloud Meeting, Microsoft Teams, Google Classroom and other tools). 

(v) Supplementing the subjects that are supported and increased the level of direct training support at small and medium enterprises specilizing in the field of production and processing: 

  • Supporting up to 70% of the total cost of a training course at small and medium enterprises but not more than 01 course/year/enterprise instead of 50% as before;
  • Supporting 100% of the total cost of a training course at small and medium enterprises owned by women, small and medium enterprises employing many women, and small and medium enterprises that are social enterprises but do not more than 01 course/year/enterprise.

(vi) Specifying the criteria for identifying innovative start-up small and medium enterprises according to one of the following criteria:

  • Production, sale of products derived from inventions, useful solutions, industrial designs, integrated circuit designs, computer software, cell phone applications, cloud computing, new animal breeds, plant varieties, aquatic organism breeds. Or
  • Production, sale of products created from trial production projects, prototypes, and technology completion; production, sale of products that win national, international prizes for entrepreneurship, startups and science and technology prices according to regulations of law on science and technology prizes.
  • There are technological solutions or business models that might increase the enterprise’s revenue by at least 20% in 02 consecutive years based on analysis of market share, prospective development of the products and competitiveness of the enterprise.

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This legal update is for general information only and is not a substitute for legal advice.