Posted 15.10. 2019 by Cekindo
With the rising economy in Vietnam, it is no wonder that small-medium enterprises (SMEs) and startups are now everywhere in the country. SMEs have the biggest role in Vietnam’s economy, accounting for 98% of all legal entities in the country, and contribute to 40% of GDP.
In order to support the growth and encourage more foreign investments in Vietnam, the Vietnamese government has issued two major regulations by providing incentives to SMEs. The regulations are Circular 5/2019 on training course subsidies for women-owned SMEs; and Circular 6/2019 on the consultant network for SME.
There will be continuous reforms and support from the government to achieve its one million companies target by 2020.
The Ministry of Planning and Investment issued Circular 6/2019 to include rules and guidelines for SMEs consultant network that provides SMEs with consultation and support.
Certain requirements apply for companies that can get use the subsidized support via the consultant network. To be called an SME, the company should have fewer than 200 employees on the state social insurance registration database, as well as a total capital of less than VND 100 billion (~US$4.4 million) per year.
Besides, to be eligible for subsidies and consultancy, an SME is required to submit the following dossier:
Once qualified, an SME is entitled with one of the following:
The Vietnamese government also plans to create an online platform so that individuals and entities can register and enter the network of consultant. Through the online platform, SMEs can then find details in regards to the consultant network: registration number, name and other information.
Decision 1696 regarding the administrative procedures was issued by the Vietnamese government on August 16, allowing SMEs apply for consulting support subsidies.
The following documents are mandatory for SMEs to apply for the subsidies:
According to Circular 5, the government will subsidise women-owned SME human resources. To be deemed a women-owned SME, the company must have at least one woman owning a total charter capital of no fewer than 51%.
The subsidy for a women-owned company is up to 100% and it will cover the expenses for female entrepreneurs in their business administration and entrepreneurship training and course. The government will open accounts for these SMEs in Vietnam so that they can join training courses online.
Cekindo provides a full range of services to make your SME establishment in Vietnam a breeze. Our SME incorporation services include everything from drafting the Articles of Incorporation to obtaining all necessary licenses.
We will walk you through the entire incorporation process to make sure that you understand the obligations of a registered entity and comply with all the regulations in Vietnam.
If you are ready to move ahead with establishing your SME in Vietnam, choose Cekindo now for a hassle-free process. Get in touch by filling in the form below.