Vietnam advances SME development laws and attracts foreign investment

Vietnam is advancing several legislative and economic initiatives to bolster its private sector and attract high-quality foreign direct investment (FDI). The National Assembly is currently deliberating the draft Law on Small and Medium Enterprise Development, which aims to replace the 2017 Support Law. This new legislation proposes a shift from passive, widespread support to a proactive, ecosystem-driven approach that focuses on the specific growth stages of enterprises, moving from micro-businesses to large corporations.

Key discussions include optimizing tax policies to reduce financial burdens on small businesses and improving access to capital. Proposed tax reforms include tiered corporate income tax rates and exemptions for low-revenue entities to stimulate innovation and growth. Additionally, authorities are emphasizing digital transformation and green industry standards to help domestic firms integrate into global supply chains.

In the financial sector, Vietnamese banks are seeing a resurgence in interest from foreign strategic investors. Techcombank is reportedly in negotiations with BNP Paribas and KB Kookmin Bank for significant equity stakes, while VPBank continues its ambitious capital increase plans to strengthen its market position. Meanwhile, regional forums in Hanoi are working to connect small and medium enterprises with major corporations, investment funds, and technology partners to enhance competitiveness.