Support for SMEs to be revised

In addition, support mainly focuses on loans, preferential interest rates or tax relief policies, which are quite common, but not all SMEs can access them.

VP9 Joint Stock Company began operations in the government's preferential high-tech sector in 2013. But after years of trying the business has given up on any intention to seek support from the government preferential SME funding.

"My business has never received any support even though it exists and we've tried many times to gain access to it. The fund manager replied immediately that it was inaccessible, contrary to what the actual paper policies are", said Nguyen Dinh Nam - General Director of P9 Joint Stock Company.

The draft law on Support for SMEs currently being discussed has identified common support measures and their well-known limitations. Support includes credit, tax, premises, technology, information, and human resources. However, businesses are still unclear on how they will be supported in this draft law.

"When it comes to support, lawmakers often think of lower taxes. But I don't think it is a positive measure. If I was a small business and I only had to pay a lower tax rate than normal, why would I grow? Isn't ít beneficial to stay small and enjoy the support? I think it is necessary to acknowledge the standing of SMEs, sổ creating a motivation for reforming the business environment in Vietnam", said Vũ Thành Tự Anh - Director of Research of Fulbright Economics Teaching Programme.

Legalise business support in order to create a legal framework for support policies is necessary. However, changes need to be made in the manner of support so that the SMEs get exactly what they need.

"We're looking forward to the improvement of administrative procedures so that we can take advantage of the opportunity costs when preparing investments", said Nguyen Manh Ha - Vice CEO of Long Giang Land.

To reach the national target of one million enterprises capable to compete internationally, support policies for businesses must be clear and feasible. Support for SMEs is necessary, but they must meet the real needs of businesses in their day-to-day activities.