(VOVworld) – The government on Tuesday submitted to the National Assembly a draft law on supporting small and medium enterprises, which aims to create momentum for business development.

Small and medium enterprises account for 97% of all businesses in Vietnam

The draft law aims to enhance competitiveness and performance of small and medium enterprises, which account for 97% of all businesses in Vietnam. Do Tien Thinh, Director of the Center for Support of Business Registration at the Ministry of Planning and Investment, said: “Subject to this draft law are small and medium enterprises plus nearly 2 million self-employed households. They will enjoy incentives in terms of land, innovative industry, and credits.”

Dau Anh Tuan, Head of the Law Department at the Vietnam Chamber of Commerce and Industry, who helps devise the law on supporting small and medium enterprises, says Vietnam is not rich enough to offer expensive programs for enterprises but can still offer some selective programs: “The draft law creates much favorable conditions for enterprises, including prohibiting giving preference to enterprises because of their size, and simplifying administrative, accounting, and auditing procedures. I believe that the draft law will achieve its major goals.”

The draft law requires that 870 million USD be spent on supporting small and medium enterprises, but Minister of Planning and Investment Nguyen Chi Dung said it will bring huge benefits: “Operating enterprises pay taxes and create jobs, contributing to poverty reduction and socio-political stabilization. So the benefits will be worth the money spent.”

The National Assembly will consider the government-proposed draft law on supporting small and medium enterprises during their current session, which will conclude on November 22.