Dec 27, 2019 / 11:23

Vietnam PM promises more favorable policies for SMEs

The Hanoitimes - Sustainable development of small and medium enterprises is essential for Vietnam to have one million enterprises by 2020, said Prime Minister Nguyen Xuan Phuc.

The Vietnamese government would provide more favorable policies for small and medium enterprises (SMEs), which currently account for 90% of the business community in the country, Prime Minister Nguyen Xuan Phuc has stated.

 Prime Minister Nguyen Xuan Phuc at the meeting. Source: VGP. 

Experiences from developed countries show that SMEs are the foundation for creating large scale enterprises, and developing SMEs is a must, Phuc said at a meeting with representatives of the Vietnam Association of SMEs on December 26.

Phuc requested government agencies at all levels to be more supportive of SMEs as they are a significant part within the economy.

The PM expected SMEs to ensure long-term development, which is essential for Vietnam to realize the target of having one million enterprises by 2020, while the ratio of enterprises to population in Vietnam remains low at 1:120 compared to other countries.

According to Phuc, SMEs should adopt achievements from technological advances and play a more active role contributing to the government’s effort in reforming the business environment.

SMEs, however, are requested to fully comply with current laws and pay more attention to social responsibilities.

“SMEs should have strong desire for growth, and become major contributors to Vietnam’s success in the future,” said Phuc.

At the meeting, representatives of the association suggested the government have specific laws supporting micro and small enterprises, while a certain number of public services under the administration of government agencies should be transferred to business associations.

Additionally, the association also proposed government agencies consider the night economy as a way to boost consumption and tourism.