Since 1986, a number of relevant laws have been promulgated, including the Enterprise Law and the Law on Encouragement of Domestic Investment. The 9th plenum resolution of the 9th Party Congress has set priorities for MSSEs.

Most worthy of note was a regulation on assistance to these businesses issued in 2001, which experts said breathed life into the MSSE sector.

As a result, the number of MSSEs has increased by approximately 30 every year to 190,000 in 2005.

The regulation has also helped create a legal foundation to form a network in support of these businesses from central to grassroots levels. So far, almost two-thirds of the provinces and cities across the country have carried out programmes on MSSEs assistance in technology, personnel training and trade promotion.

Along with a boom in number, MSSEs have improved their operation quality, thus contributing around 45% of the gross domestic product (GDP) and over 27% of the development investment. MSSEs provide jobs for some 25% of the national workforce.

MSSEs have made up a large part of the private economic sector, which this year took a lead in industrial growth with a rate of 23.5% over 2004, according to the Ministry of Planning and Investment.

The Government has asked the Ministry of Planning and Investment to finalise a draft on development of MSSEs for the next five years to help some 320,000 new enterprises take shape by 2010, of which between 3 and 6% will engage in exporting.

The Government has also instructed the Ministry of Planning and Investment and the Finance Ministry to consider further administrative reform to encourage investment from this sector in new industries, high-quality services and products that are key to the national economy.

The Government also pointed out the immediate need to work out a mechanism for credit support for rural MSSEs, especially those in small industrial and handicraft villages.

Deputy Minister of Planning and Investment Nguyen Ngoc Phuc has unveiled the Government's plans to issue a policy towards establishing funds, solve the shortage of space for workshops and promote technological transfer for MSSEs.

Source: Nhandan online, 3/2/2006