National Assembly Chairwoman Nguyen Thi Kim Ngan called it critical to clarify criteria determining which businesses are small and medium sized in order to raise feasible support as the country aims to boost its private sector and start-up culture.

As small- and medium-sized enterprises (SMEs) account for around 97 per cent of firms in Viet Nam, the State’s limited resources must support SMEs, Ngan said while discussing the Law on supporting SMEs at the National Assembly Standing Committee’s sixth session Monday.

National Assembly deputies agreed that supporting SMEs is of special importance to create momentum for economic growth, noting that attention should be given to ensure the feasibility and timeliness of the law.

The scope of the draft law remains too large, making support infeasible and beyond State resources, Ngan said.

Phan Thanh Binh, Chairman of the National Assembly Committee for Culture, Education, Youth and Children, said that SMEs should be classified into different categories for appropriate support.

Deputies said that support should focus on SMEs operating in manufacturing, science and technology, especially those which could create high added value for the economy.

In addition, it is necessary to have policies that will improve SMEs’ access to credit and capital.

Deputy Chairman of the National Assembly Phung Quoc Hien said that the law must ensure the consistency with other major laws, such as the Law on State budget, the Law on Tax and the Law on Land.

Deputies also said that further consideration must be given when drafting the law on supporting SMEs. The draft law will be discussed at the third meeting session of the National Assembly and might be passed at its fourth meeting.

The National Assembly Economic Committee said that the law will be drafted with a focus on supporting start-ups, start-up funds and SME support funds. — VNS