Resolution No. 22/NQ-CP dated May 5, 2010 of the Government on implementation of the Government's Decree No. 56/2009/ ND-CP of June 30,2009, on support for the development of small- and medium-sized enterprises

Resolution No. 22/NQ-CP of May 5, 2010, on implementation of the Government's Decree No. 56/2009/ ND-CP of June 30,2009, on support for the development of small- and medium-sized enterprises

RESOLUTION

ON IMPLEMENTATION OF THE GOVERNMENT'S DECREE NO. 56/2009/ ND-CP OF JUNE 30,2009, ON SUPPORT FOR THE DEVELOPMENT OF SMALL- AND MEDIUM-SIZED ENTERPRISES

THE GOVERNMENT

Small- and medium-sized enterprises occupy an important position in socio-economic development, accounting for some 97% of the total registered enterprises. They constitute a sector, playing a very important role in generating jobs and increasing incomes for laborers and mobilizing social resources for development investment and contributions to the state budget. Though with not large initial investment capital, small- and medium-sized enterprises have been formed and widely developed in urban and rural areas, in almost all production and business domains. They have tapped and mobilized every resource and potential, creating opportunities for a vast majority of population to participate in investment and forming a healthier environment for competition.

Since the end of 2007, Vietnam's economy has been negatively affected by the global financial crisis and economic downturn, but the number of enterprises registered for establishment still rise: by the end of 2009, nearly 85,000 new enterprises registered for establishment, up by nearly 30% over 2008. The positive development of small- and medium-sized enterprises in recent years has substantially contributed to the generation of new jobs, reduction of unemployment and stabilization of the economic, political and social welfare situation. However, small- and medium-sized enterprises still face difficulties as well as typical and persistent limitations, which affect their competitiveness and development, such as small size, obsolete technology, low business administration capability, difficult access to credit and production grounds and poor association with big enterprises.

In order to further encourage and support the development of small- and medium-sized enterprises, meeting new integration and development requirements, on June 30,2009, the Government promulgated Decree No. 56/2009/ ND-CP, on support for development of small-and medium-sized enterprises, which replaces Decree No. 90/2001 /ND-CP of October 23,2001. on support for development of small- and medium-sized enterprises.

In order to actively and synchronously implement policies in support of development of small- and medium-sized enterprises, as provided in Decree No. 56/2009/ND-CP, aiming to support small- and medium-sized enterprises in bringing into play all their capabilities and resources to step up production and business activities, the Government resolves:

I. TO GUIDE THE FORMULATION OF PLANS AND PROGRAMS IN SUPPORT OF DEVELOPMENT OF SMALL- AND MEDIUM-SIZED ENTERPRISES

1. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with ministries, sectors, localities and business associations in:

a/ Disseminating and guiding the implemen­tation of the Government's Decree No. 56/2009/ ND-CP of June 30, 2009, on support for the deve­lopment of small- and medium-sized enterprises, guiding the classification of small- and medium-sized enterprises by their sizes and main production and business lines, guiding the formulation of state programs on support for small- and medium-sized enterprises at the central and local levels.

b/ On the basis of the five-year (2011-2015) socio-economic development plan and the report on the implementation of the five-year (2006-2010) plan on development of small- arid medium-sized enterprises, studying the formulation of a new five-year (2011-2015) plan on development of small- and medium-sized enterprises for submission to the Prime Minister in 2011.

2. Ministries, sectors and localities shall formulate plans on support for the development of small- and medium-sized enterprises, attaching importance to implementation solutions and funds, and include them into their respective five-year and annual plans and budget estimates, then submit them to the Ministry of Finance and the Ministry of Planning and Investment for sum-up and
balance of resources.

II. TO RAISE THE ACCESSIBILITY OF CREDIT CAPITAL SOURCES AND MOBILIZE FINANCIAL SUPPORT RESOURCES FOR SMALL- AND MEDIUM-SIZED ENTERPRISES

1. The State Bank shall assume the prime responsibility for. and coordinate with concerned agencies in:

a/ Further applying measures to adjust monetary policies in order to control credit operations of credit institutions towards focusing on meeting capital demands for the domains of production, export and agriculture, rural areas, and small- and medium-sized enterprises.

b/ Actively suggesting, and coordinating with the Ministry of Planning and Investment in negotiating, receiving or arranging ODA sources to provide technical assistance and enhance capabilities for credit institutions to expand their credit to small- and medium-sized enterprises, and provide financial consultancy, investment management and other support services for small- and medium-sized enterprises.

c/ In the third quarter of 2010, submitting to the Prime Minister a report on the application of credit mechanisms and policies as well as forms to small- and medium-sized enterprises, and proposing measures to boost the development of products and services suitable to small- and medium-sized enterprises, such as factoring and financial leasing.

The Ministry of Planning and Investment shall, in the fourth quarter of 2010, assume the prime responsibility for, and coordinate with the Ministry of Finance, the State Bank and concerned agencies in. assessing financial supports for small- and medium-sized enterprises, the operation of enterprise support funds, and formulating a scheme on the establishment of a Fund for Development of Small- and Medium-Sized Enterprises for submission to the Prime Minister.

2. The Ministry of Finance shall assume the prime responsibility for. and coordinate with concerned agencies in:

a/ In the third quarter of 2010. conducting the final review and comprehensive evaluation of the establishment and operation of credit guarantee funds for small- and medium-sized enterprises in localities, the credit guarantee by the Vietnam Development Bank for small- and medium-sized enterprises and report thereon to the Prime Minister for amendment and supplementation of the mechanism of establishing and managing credit guarantee funds for small- and medium-sized enterprises, to suit local conditions.

b/ In 2010, studying for submission to the Government a decree amending and supplementing Decree No. 151/2006/ND-CP and Decree No. 106/2008/ND-CP on investment credit and export credit of the State, giving priority to small- and medium-sized enterprises engaged in export, agriculture and rural development.

c/ To assume the prime responsibility for. and coordinate with the Ministry of Planning and Investment and concerned agencies in. promul­gating regulations on financial management and regulations on financial inspection and supervision of the Fund for Development of Small- and Medium-Sized Enterprises after the Prime Minister issues a decision on its establishment.

III. TO REMOVE DIFFICULTIES IN PRODUCTION GROUND

1. Provincial-level People's Committees shall:

a/ Review and adjust their land use plannings, organize land recovery and ground clearance compensation, creating new land funds for small-and medium-sized enterprises to lease or reserve land funds for the construction of industrial parks or clusters for small- and medium-sized enterprises and enterprise nurseries.

b/ Annually publicize land areas reserved for small- and medium-sized enterprises and industrial parks and clusters for small- and medium-sized enterprises as well as enterprise nurseries; provide consultancy and remove difficulties for small- and medium-sized enterprises when they seek production and business grounds.

2. In 2010, the Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned agencies and provincial-level People's Committees in. formulating preferential mechanisms to encourage enterprises to invest in the construction of infrastructure facilities of industrial parks and clusters reserved for small-and medium-sized enterprises and enterprise nurseries, studying the application of regulations on preferences in land use levy, land rent and investment credit support.

3. In 2010. the Ministry of Industry and Trade shall assume the prime responsibility for formulating and submitting to the Prime Minister a master plan on development of territory-based industrial clusters through 2015. with a vision towards 2020.

4. The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with concerned agencies in:

a/ Promulgating in the second quarter of 2010 a circular guiding the implementation of the Government's Decree No. 04/2009/ND-CP of January 14, 2009, on preferences and supports for environmental protection, detailing land-related financial incentives with a view to supporting small- and medium-sized enterprises with polluting production and business facilities to remove from urban and populated areas, permitting the shift of the land use purpose from production and business land to residential land and commercial land for sale and coverage of their relocation costs.

b/ Publishing a bulletin on land use planning to provided information on land use planning to localities and enterprises.

IV. TO SUPPORT SMALL- AND MEDIUM-SIZED ENTERPRISES IN RAISING THEIR COMPETITIVENESS

1. To further support small- and medium-sized enterprises in renewing and raising their technological capability and technical level

a/ The Ministry of Science and Technology shall assume the prime responsibility for, and coordinate with concerned ministries and sectors in:

- In the second quarter of 2010, reviewing legal provisions on policies to support small- and medium-sized enterprises in studying scientific application and technological renewal; proposing the Prime Minister to promulgate a directive to step up the implementation of mechanisms and policies to support small- and medium-sized enterprises in the application of technical advances, renewal of equipment, raising of technological capability, and technological transfer.

- Expeditiously finalizing and submitting to the Prime Minister a national program on technological renewal through 2020, attaching importance to solutions to support small- and medium-sized enterprises, especially in agricultural and rural development sector, traditional craft villages, in replacing backward technologies with advanced ones and mastering technologies transferred from overseas into Vietnam.

- Submitting in the third quarter of 2010 to the Prime Minister a program on experimental support for small- and medium-sized enterprises in applying ISO systems and other international standards, on the principle of partial funding support for consultancy on building these systems for small- and medium-sized enterprises producing export goods, engaged in agriculture and rural development and operating in supporting industries.

- In the fourth quarter of 2010, based on the evaluation of the implementation of the program on support for development of intellectual property assets of enterprises in the 2005-2010 period, submitting to the Prime Minister a new program for the 2011-2015 period, with contents suitable tojhe characteristics and needs of small-and medium-sized enterprises.

- In 2010, studying and submitting to the Government a decree amending and supplemen­ting the Government's Decree No. 119/1999/ND-CP of September 18, 1999, on a number of financial policies and mechanisms for encouraging enterprises to invest in scientific and technological activities, considering increasing state budget support levels to the maximum of 50% of the total fund for carrying out research projects on technological renewal of small- and medium-Sized enterprises, and amending regulations related to the allocation and procedures for payments and settlement of support funds.

b/ The Ministry of Finance shall, in 2010, assume the prime responsibility for, and coordinate with the Ministry of Science and Technology and concerned agencies in, promulgating a document replacing Decision No. 36/2007/QD-BTC of May 16, 2007, on Regulations on organization and operation of the Scientific and Technological Development Funds of organizations, individuals and enterprises towards encouraging small- and medium-sized enterprises, organizations and individuals to set up these funds, to support small- and medium-sized enterprises in technological research, application and renewal.

2. To support human resource development, attaching importance to raising the business administration capability of small- and medium-sized enterprises

a/ In the second quarter of 2010, the Ministry of Planning and Investment shall assume the prime responsibility for and coordinate with the Ministry of Finance in, promulgating a joint circular guiding the formulation of business administration training plans and management and use of state budget support funds for the implementation of these plans for small- and medium-sized enterprises.

b/ Ministries, sectors and provincial-level People's Committees shall:

Formulate plans on supporting the business administration training for small- and medium-sized enterprises and include their implementa­tion funding sources in their annual budget estimates and send them to the Ministry of Finance and the Ministry of Planning and Investment.

Encourage and create favorable conditions for the Vietnam Chamber of Commerce and Industry, business associations and business development service organizations to participate in training for small- and medium-sized enterprises.

c/ The Ministry of Labor, War Invalids and Social Affairs shall assume the prime responsibility for, and coordinate with concerned agencies in:

- Scrutinizing and incorporating solutions to increasing investment in vocational training development to raise the quality of workers, especially technical workers, into the schemes on development of labor market in Vietnam through 2020; vocational training renewal and development in the 2008-2020 period; vocational training for rural laborers through 2020. and the 2011-2020 strategy on vocational training development, aiming to meet the market demands and enterprise expansion and development requirements.

- Studying the expansion of eligible borrowers, increase of loan amounts for enterprises' projects, which yield high efficiency in job creation, attaching importance to small-and medium-sized enterprises under the national program on employment; studying the expansion of support beneficiaries under the Prime Minister's Decision No. 30/2009/QD-TTg of February 23. 2009.

- Building and finalizing the labor market information system, especially information on labor needs of small- and medium-sized enterprises, putting into operation the national database labor market system in 2010; gathering, processing and analyzing forecasts, managing and supplying labor market information on workforce qualification levels and production and business lines and domains; connecting labor supply and demands via employment transaction system in order to create favorable conditions for enterprises to recruit employees and workers suitable to their production and business requirements.

3. To promote market expansion, encouraging the participation in supplying products and public services

a/ The Ministry of Industry and Trade shall prescribe the minimum percentage of small- and medium-sized enterprises participating in programs on domestic market trade promotion, national trade promotion and work out activities in support of product sale, market expansion and export acceleration suitable to small- and medium-sized enterprises.

b/ In the fourth quarter of 2010, the Ministry of Finance shall coordinate with concerned agencies in studying and submitting to the Prime Minister a mechanism to encourage small- and medium-sized enterprises to supply products and public services specified in Clause 1, Article 11 of Decree No. 56/2009/ND-CP.

c/ In the first and second quarters of 2010, the Ministry of Planning and Investment shall promulgate forms of bidding dossiers, encouraging small- and medium-sized enterprises to participate in bidding for consultancy services and products.

4. The Ministry of Agriculture and Rural Development shall assume the prime responsibility for, and coordinate with concerned agencies in:

a/ In 2010, formulating and submitting to the Government a program on support of the development of small- and medium-sized enterprises in the field of agriculture and rural areas in the 2011-2015 period, focusing on solutions to raising the competitiveness for agricultural and rural enterprises and traditional craft villages, enterprise income tax incentives, exemption and reduction of land use levies or land rents for small-and medium-sized agricultural enterprises operating in rural, mountainous, marine, deep-lying and remote areas.

b/ Reviewing and incorporating solutions for supporting the development of small- and medium-sized enterprises in its sectoral development strategy, the national program on agricultural, forestry and fishery promotion and other key programs of the sector.

5. In the third quarter of 2010 the Ministry of Industry and Trade shall assume the prime responsibility for and coordinate with concerned agencies in. submitting to the Prime Minister a scheme on support of the development of small-and medium-sized enterprises in the field of allied industries in line with the master plan on development of allied industries, already approved by the Government.

V. TO STEP UP THE APPLICATION OF A NUMBER OF SOLUTIONS TO ADMINISTRATIVE PROCEDURE REFORM TO CREATE FAVORABLE CONDITIONS FOR SMALL- AND MEDIUM-SIZED ENTERPRISES

1. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance and provincial-level People's Committees in connecting the national enterprise registration system and the tax information system, aiming to reform business registration and tax registration procedures for enterprises set up under the Enterprise Law towards "one-stop shop", ensuring technical and operational compatibility and close coordination among agencies.

2. The Ministry of Finance shall direct the study and formulation of the tax administration procedures, contents and requirements suitable to small- and medium-sized enterprises.

VI. TO BUILD AND CONSOLIDATE A SMALL- AND MEDIUM-SIZED ENTERPRISE DEVELOPMENT SUPPORT SYSTEM

1. The Ministry of Planning and Investment shall:

a/ In the second quarter of 2010 assume the prime responsibility for and coordinate with

concerned agencies in. submitting to the I Minister for promulgation a decision amending and supplementing the tasks of the Council for Encouragement of Development of Small Medium-Sized Enterprises; formulate promulgate Working Regulations of the Council.

b/ Assume the prime responsibility for, and coordinate with the Ministry of Finance, the Ministry of Science and Technology and concerned agencies in. submitting to the Prime Minister for promulgation a decision amending and supplementing the tasks of the Council for Encouragement of Development of Small- and Medium-Sized Enterprises; formulate and promulgate Working Regulations of the Council.

b/ Assume the prime responsibility for, and coordinate with the Ministry of Finance, the Ministry of Science and Technology and concerned agencies in, studying, formulating and submitting to the Prime Minister in 2011 a scheme on capacity building for agencies acting as focal points in implementing policies on support for the development of small- and medium-sized enterprises. including improvement of physical foundations, raising of personnel capabilities and assurance of funding sources for a number of principal activities such as business administration training for small- and medium-sized enterprises, training of business administration consulting specialists, training of cadres performing the work of supporting the development of small- and medium-sized enterprises, experimentation of technical assistance models for small- and medium-sized enterprises in some priority sectors, connecting enterprises and expanding investment and business opportunities for small- and medium-sized enterprises.

2. Provincial-level People's Committees shall decide on a number of units acting as focal points in supporting the development of small- and medium-sized enterprises in their localities in pursuance to Joint Circular No. 05/2009/TTLT-BKHDT-BNV of August 5, 2009. of the Ministry of Planning and Investment and the Ministry of Home Affairs, guiding the function, tasks, powers and organizational structures of specialized planning and investment agencies under provincial or district People's Committees. For localities with a total number of enterprises of over 3,000 each, a new unit under the provincial-level Planning and Investment Department shall be set up or the function, tasks and payrolls may be added to existing unit of such Department.

VII. ORGANIZATION OF IMPLEMENTATION

1. Ministers, heads of ministerial-level agencies and heads of government-attached agencies shall implement the solutions prescribed in this Decree and promptly report to the Prime Minister on difficulties and problems arising in the course of implementation and concurrently send such reports to the Ministry of Planning and Investment.

2. The Ministry of Planning and Investment shall monitor, summarize and assess the results of implementation of the Resolution and periodically report thereon to the Prime Minister.-

ON BEHALF OF THE GOVERNMENT

PRIME MINISTER

NGUYEN TAN DUNG