More opportunities open up for SMEs

Production at a small and medium-sized enterprise in Long Binh ward. Photo: Vuong The

For businesses, access to capital, production sites, and technology remains a fundamental factor for growth. These issues are being addressed through proposed policy changes to expand access to incentives and support programs for the business community.

Expanding access to capital

Under the current Law on Support for SMEs, enterprise size is determined by multiple criteria, including the average number of employees covered by social insurance, total capital, and annual revenue in the preceding year. In the draft revision, the classification method is expected to be simplified, with annual revenue becoming the primary criterion. This approach would facilitate comparisons with tax, social insurance, and other state management databases. Annual revenue would be the most important basis for determining whether an enterprise qualifies for support, the level of support it may receive, and its eligibility to continue receiving assistance. The draft also broadens the categories of enterprises eligible for priority support. These include SMEs owned by persons with disabilities or ethnic minority entrepreneurs, as well as businesses operating under sustainable and inclusive models and applying ESG (Environmental, Social and Governance) standards.

The proposed amendments underscore a stronger commitment to sustainable development. Under the new approach, enterprises would be assessed not only by revenue, workforce size, or capital resources, but also by the value they create for society, the environment, and local communities. Moreover, the draft focuses on how businesses operate, including compliance with labor regulations, environmentally friendly policies, emissions control, product traceability, transparent corporate governance, personal data protection, and legal compliance.

Regarding access to finance, the MoF has proposed mechanisms that encourage credit institutions to extend loans to SMEs using a wider range of collateral. In addition to tangible assets such as real estate, businesses could use future assets, property rights, intellectual property rights, digital assets, and virtual assets as collateral for loans.

According to Dr. Tran Quy, Director of the Vietnam Institute for Digital Economy Development, SMEs account for more than 98 percent of operating enterprises nationwide and contribute approximately 40 percent of GDP. However, they currently have access to only about 19-20 percent of the economy's total outstanding credit.

He noted that around 93.5 percent of bank loans require real estate as collateral. Therefore, the proposal to recognize property rights, intellectual property, intangible assets, and digital assets as legitimate collateral could fundamentally reshape access to finance for innovative enterprises.

“If implemented comprehensively, this mechanism could trigger a revolution within the innovation ecosystem,” Quy said.

Alongside expectations of easing credit access constraints, the draft law also seeks to shift from a pre-approval model to a post-audit approach based on actual performance and outcomes. This proposal has attracted significant attention because it would allow enterprises to focus more on business operations rather than administrative procedures.

Expectations for stronger impact

Vietnam currently has more than one million enterprises, the vast majority of which are small, medium-sized, or micro businesses. Despite their considerable potential, domestic enterprises continue to face numerous obstacles in expanding their presence in both domestic and international markets. According to experts, the effectiveness of support policies depends not on the number of programs available but on whether enterprises can genuinely access resources. Against the backdrop of recent policy reforms that support the private sector, businesses are hoping for stronger, more practical support mechanisms.

Ho Sy Hung, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said the revised draft law contains more specific and practical support measures for enterprises.

Under the proposal, enterprises would be able to apply for support policies through clearly defined mechanisms, with support levels specified directly in the law rather than remaining general principles that are difficult to implement in practice.

In Dong Nai, access to capital is particularly important, as the city is one of Vietnam’s major industrial centers, offering SMEs opportunities to participate in supply chains and supply components and products to major manufacturers. Many local enterprises operate in supporting industries, mechanical engineering, processing, logistics, and industrial services. To upgrade production capacity and meet the requirements of large corporations, they require medium- and long-term financing for factories, machinery, technology, and management improvements.

However, smaller enterprises often struggle to secure loans due to collateral requirements, credit history limitations, and challenges in preparing viable business plans. The new provisions in the draft law, particularly those aimed at strengthening credit guarantee mechanisms, could create additional opportunities for Dong Nai enterprises to access formal financing channels rather than relying heavily on self-financing.

According to Dang Quoc Nghi, Chairman of the Dong Nai Young Entrepreneurs Association and Director of Nam Viet Dragon Co., Ltd. in Tam Hiep ward, removing institutional bottlenecks, especially those related to capital access, would create more favorable conditions for local enterprises to invest in technological innovation, improve productivity, and integrate more deeply into domestic and global supply chains.