HCMC – A draft revision to the SME Support Law would classify small and medium-sized enterprises as entities with fewer than 300 employees and annual revenue below VND400 billion, according to the Ministry of Finance.
The draft would simplify the current criteria for identifying SMEs by using two indicators: average annual workforce and revenue from the previous year. The ministry expects the change to make the rules easier to apply and improve data verification through tax, social insurance, and business registration systems.
The revised law aims to strengthen the legal framework for SME support and improve policy transparency and implementation, the ministry noted.
Under the proposal, support policies would be more targeted, time-limited, and tied to measurable outcomes. Agencies responsible for implementation would face greater accountability.
The draft also proposes that firms must fully meet social insurance obligations for employees to qualify for support programs. The measure is intended to improve compliance and prevent abuse of state support policies.
Other proposed changes would reshape financial support tools such as credit guarantee funds, SME development funds, and venture capital funds for innovative startups.
The ministry also plans to allocate support budgets based on output results and introduce a voucher mechanism allowing businesses to choose services that match their needs.
The ministry is seeking public feedback on the proposal through its website. The draft law is in the consultation stage before submission to the relevant authorities for review and approval.
