Vietnam National Assembly debates SME tax exemptions and support vouchers

During the first specialized meeting of the 16th National Assembly, delegates discussed the draft Law on Small and Medium Enterprise (SME) Development, focusing on tax incentives and support mechanisms.

A key proposal involves a three-year corporate income tax exemption for SMEs. However, delegates have raised concerns regarding the timing of this exemption. Some suggest the three-year period should begin from the first year the enterprise generates taxable income, rather than from the date of initial business registration, to ensure the support is effective during profitable periods.

Additionally, the draft law introduces a new “voucher” mechanism. These non-transferable certificates would help SMEs reduce specific costs, such as land rent. Under the proposal, SMEs could receive a minimum 30% reduction in land rent for the first five years, with the state reimbursing infrastructure developers. Experts and delegates emphasized that these vouchers must be designed to reduce actual out-of-pocket expenses without creating excessive administrative procedures.

In other regional developments, Quang Ninh is implementing resolutions to drive economic growth and urban quality, aiming for a GRDP growth rate exceeding 12.5% by 2026. Meanwhile, Hanoi is launching a strategic program to support 84 craft villages in building brands and securing intellectual property rights to enhance their international competitiveness.