Decree No. 39/2018/ND-CP dated March 11, 2018 of the Government on detailing a number of Articles of the laws on small and medium-sized enterprises

DECREE

Detailing a number of articles of the Law on Support for Small- and Medium-Sized Enterprises^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the June 12, 2017 Law on Support for Small- and Medium-Sized Enterprises;

At the proposal of the Minister of Planning and Investment;

The Government promulgates the Decree detailing a number of articles of the Law on Support for Small- and Medium-Sized Enterprises.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details a number of articles of the Law on Support for Small- and Medium-Sized Enterprises, including Article 4; Clauses 1 and 2, Article 14; Article 15; Clause 2, Article 16; and Articles 17 and 19.

Article 2. Subjects of application

1. Enterprises which are established and organized and operate in accordance with the law on enterprises, meeting the criteria for identification of small- and medium-sized enterprises prescribed in Article 6 of this Decree.

2. Agencies, organizations and individuals involved in support for small- and medium-sized enterprises.

Article 3. Interpretation of terms

1. Small- and medium-sized enterprise support scheme means a set of interrelated activities using resources aiming at supporting small- and medium-sized enterprises with development potential in one or more than one field, sector and geographical area in one or more than one period.

2. Agency in charge of a small- and medium-sized enterprise support scheme means a small- and medium-sized enterprise-supporting agency or organization which is assigned by a competent authority to formulate, organize, coordinate, supervise and evaluate the implementation of, and take full responsibility for, a small- and medium-sized enterprise support scheme as prescribed in Clause 1 of this Article.

3. National small- and medium-sized enterprise support portal means an Internet access point (at www.business.gov.vn) created to support small- and medium-sized enterprises through integrating information, services and applications serving the operation of small- and medium-sized enterprises.

4. Consultant network means a group of consultants and consultancy organizations specialized in different fields meeting the needs of small- and medium-sized enterprises, recognized by state management agencies on the basis of publicly announced criteria to support small- and medium-sized enterprises.

Article 4. Principles of support provision

1. The state-funded support for small- and medium-sized enterprises being innovative startups and participating in industrial clusters and value chains shall be provided according to small- and medium-sized enterprise support schemes prescribed in Article 5 of this Decree.

2. Support on information, consultancy and human resource development for small- and medium-sized enterprises, and support for small- and medium-sized enterprises converted from business households shall be provided according to annual budget estimates. For medium- or long-term support objectives, the support in terms of information, consultancy and human resource development for small- and medium-sized enterprises, and support for small- and medium-sized enterprises converted from business households may be provided according to small- and medium-sized enterprise support schemes submitted to competent authorities under regulations.

3. Depending on available resources, small- and medium-sized enterprise supporting agencies and organizations shall decide on the number of enterprises entitled to support, ensuring the following principles:

a/ Women-owned small- and medium-sized enterprises and small- and medium-sized enterprises employing more female employees than male employees and submitting valid dossiers shall be provided with support first;

b/ Small- and medium-sized enterprises submitting valid dossiers first shall be provided with support first.

Article 5. Small- and medium-sized enterprise support schemes

A small- and medium-sized enterprise support scheme must have the following contents: support objectives, beneficiaries and conditions; selection process and procedures; contents of support; resources for support provision; mechanism for management, monitoring and evaluation of support results; scheme implementation period; and other contents (if any).

Chapter II

IDENTIFICATION OF SMALL- AND MEDIUM-SIZED ENTERPRISES

Article 6. Criteria for identification of small- and medium-sized enterprises

Small- and medium-sized enterprises shall be classified by size into micro-enterprises, small-sized enterprises and medium-sized enterprises.

1. A micro-enterprise in the agriculture, forestry, fisheries, industry or construction sector has an annual average number of no more than 10 employees who participate in social insurance and a total annual revenue not exceeding VND 3 billion or a total capital not exceeding VND 3 billion.

A micro-enterprise in the trade or service sector has an annual average number of no more than 10 employees who participate in social insurance and a total annual revenue not exceeding VND 10 billion or a total capital not exceeding VND 3 billion.

2. A small-sized enterprise in the agriculture, forestry, fisheries, industry or construction sector has an annual average number of no more than 100 employees who participate in social insurance and a total annual revenue not exceeding VND 50 billion or a total capital not exceeding VND 20 billion, but is not a micro-enterprise defined in Clause 1 of this Article.

A small-sized enterprise in the trade or service sector has an annual average number of no more than 50 employees who participate in social insurance and a total annual revenue not exceeding VND 100 billion or a total capital not exceeding VND 50 billion, but is not a micro-enterprise defined in Clause 1 of this Article.

3. A medium-sized enterprise in the agriculture, forestry, fisheries, industry or construction sector has an annual average of no more than 200 employees who participate in social insurance and a total annual revenue not exceeding VND 200 billion or a total capital not exceeding VND 100 billion, but is not a micro-enterprise or small-sized enterprise defined in Clause 1 or 2 of this Article.

A medium-sized enterprise in the trade or service sector has an annual average of no more than 100 employees who participate in social insurance and a total annual revenue not exceeding VND 300 billion or a total capital not exceeding VND 100 billion, but is not a micro-enterprise or a small-sized enterprise defined in Clause 1 or 2 of this Article.

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