hese are just two of six measures recently announced by the Government in Resolution No 22/NQ-CP on supportive measures for small and medium-sized enterprises (SMEs).

The other measures include developing a plan for the development of SMEs for the next five years, reforming administrative procedures, helping the SMEs to strengthen competitiveness and reinforcing supportive measures.

The resolution has been issued in order to help SMEs overcome difficulties such as small scale production, out of date technology and weak administrative capacity, and help them to get past obstacles that deny them access to land and capital.

More land

The Government has asked provincial People’s Committees to allocate more land to SMEs and do their utmost to find premises for SMEs.

In the second quarter of this year, the Ministry of Natural Resources and Environment will issue a new circular to help SMEs with environmental issues relocate from urban and residential areas.

The ministry will also have to provide information and publicise planning applications for each province.

Meanwhile, the State Bank of Viet Nam (SBV) has been ordered to continue the implementation of measures to adjust monetary policies in order to manage credit activities to serve demands for capital from SMEs.

In the fourth quarter, the Ministry of Planning and Investment, in collaboration with the Ministry of Finance (MoF) and SBV, will draft a proposal for an SME development fund.

The MoF is also expected to submit a Supplementary Decree to the Government on investment and export credits, which gives priority to SMEs.

Regarding the obstacles in competitiveness and access to credit sources, the Government has ordered the Ministry of Labour, Invalids and Social Affairs to research and widen the beneficiaries of loans and their for effective projects to create employment.

Also in 2010, the Ministry of Agriculture and Rural Development has been assigned to develop a programme to support SMEs in agriculture for the period 2011-15. Measures to heighten the competitiveness for enterprises in rural areas and traditional craft villages will be given priorities. This will include preferential income tax rates and a land use fee waiver or reduction.

Source: VietNamNet/Viet Nam News