Vietnam proposes new SME development law and tax reforms

Vietnam is considering significant legislative changes to support small and medium-sized enterprises (SMEs) and micro-businesses. A key development is the proposed transition from the 2017 Law on Support for SMEs to a new Law on SME Development, which is expected to be submitted to the National Assembly by October 2026.

To reduce the administrative and financial burden on small businesses, the Ministry of Finance is exploring simplified tax and accounting methods. For micro-enterprises and business households with revenues under 10 billion VND, authorities are considering a simplified tax method based on a direct percentage of revenue rather than complex cost-deduction accounting. This move aims to address difficulties in proving expenses for very small operations.

Beyond tax relief, the new policy direction focuses on improving access to credit and finance, which has been a major hurdle for nearly a decade. The proposed legal framework emphasizes empowering businesses to develop their own capacity and scale up, rather than relying solely on direct state subsidies.