Vietnam National Assembly debates new SME development law

The National Assembly of Vietnam is debating a draft Law on the Development of Small and Medium-sized Enterprises (SMEs), intended to replace the 2017 legislation. The proposed law marks a shift from general business support to creating conditions for development, focusing on meeting actual business needs rather than providing available government resources.

Minister of Finance Ngo Van Tuan stated that previous policies were often fragmented and disconnected from business requirements. The new five-chapter, 35-article draft proposes targeted, time-bound support tied to measurable growth outcomes. It aims to assist businesses through various stages, from household enterprises to large corporations, by building a comprehensive ecosystem involving research institutes, funds, and large firms.

National Assembly Chairman Tran Thanh Man and Chairman of the Economic and Financial Committee Phan Van Mai discussed the importance of the revision. While supporting the move toward demand-driven assistance and the removal of controversial total-capital criteria, officials emphasized the need for transparent eligibility and the avoidance of new administrative burdens or “request-and-approval” mechanisms.