How has streamlined the registration procedures for business in Vietnam in 2023?

How has streamlined the registration procedures for business in Vietnam in 2023?

By the end of 2019, more than 30,000 FDI projects with a registered capital of approximately 362 billion USD had chosen Vietnam as their investment destination. As a result of Vietnam's recent focus on the private sector, foreign investors are flocking to the country's market.

How Vietnam Has Streamlined Procedures to Register Business in Vietnam?

Vietnam's participation in various free trade agreements has provided a strong impetus for foreign investors from developed nations to take their first steps in Vietnam. The country has established diplomatic ties with nearly 190 nations worldwide and signed approximately 15 Free Trade Agreements with important trading partners.

Investors must submit an application for the Investment Registration Certificate in order to register a business in Vietnam. The investor must then apply for an Enterprise Registration Certificate after receiving the Investment Registration Certificate.

Investors must first select a business name that is not identical to or confusingly similar to the name of another business that is already registered in the National Database of Business Registration on a national scale. This does not apply to business that have been dissolved or that have had effective court decisions declaring them bankrupt.

The investors or authorized person must then prepare a comprehensive set of application dossiers in accordance with the law and submit them to the Business Registration Office where the planned head office will be located. Based on the appointment date on the receipt, the Business Registration Office will verify the validity of the application dossier. Investors or authorized individuals can either go to the Business Registration Office to receive the application results or register to receive them by mail. After receiving the valid dossier, the deadline for considering and processing it is three working days.

The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:

-The registered business lines are not in the prohibited business sectors;

-The business’s name is set in accordance with the provisions of law;

-Having a head office as prescribed by law;

-Having a valid business registration dossier as prescribed by law;

-Fully paying the enterprise registration fee as prescribed by law

Investors have increased their faith in Vietnam's business and investment climate over time. The socio-political and macroeconomic steadiness are conspicuous highlights for the development of Vietnam's business potential. The Vietnam not set in stone to work on the cycle for speculation application. As a result, Vietnam is and will continue to be an appealing location for investment as well as a promising location for foreign investors to apply for an investment registration certificate and register a business when compared to other countries in the region that are neighboring Vietnam.

ANT Lawyers is a law firm in Vietnam that will always contact the authorities to obtain legal updates on issues pertaining to the registration of investments or the establishment of business in Vietnam.   

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How to Resolve Disputes Settlement through Arbitration in Vietnam?

How to Resolve Disputes Settlement through Arbitration in Vietnam?

Arbitration, mediation, negotiation, and litigation are all methods of dispute resolution. In order to resolve disputes, a litigation dispute law firm in Vietnam needs dispute lawyers who have the expertise and experience necessary to resolve complex cross-border, commercial, and civil disputes.

Most business agreements could include a provision stating that disputes must be resolved through arbitration in the current business environment. A valid written arbitration agreement, either as an arbitration clause in a contract or a separate agreement, is required for a dispute to be referred to arbitration. The arbitration clause is treated as independent if it is included in a contract, and the arbitration clause's validity is unaffected by contract modifications, extensions, or terminations. As long as the parties clearly state their intention to resolve any dispute through arbitration, Vietnamese law permits a written arbitration agreement to take any form. The residing court is required to drop the case if a dispute falls within the scope of a valid arbitration agreement and a party attempts to initiate court proceedings. Additionally, the arbitration organization authorized to resolve disputes without supplemental agreement is not required to be specified in an arbitration agreement. Even if there is a valid arbitration agreement, the Vietnamese Arbitration Law states that a dispute must also fall into one of three categories before it can be arbitrated:

(1) disputes arising from “commercial activities”;

(2) disputes where at least one party is engaged in commercial activities;

(3) other disputes where the law stipulates that arbitration is a permissible means of resolution.

The definition of the term "commercial activity" in category (1) can be found in Commercial Law No. “activity for profit-making purposes comprising the purchase and sale of goods, provision of services, investment, commercial enhancement, and other activities for profit-making purposes,” according to 36-2005-QH11 (31 December 2005). Noncommercial disputes, such as civil disputes, in which at least one party is engaged in commercial activities, frequently fall into the second category. However, disputes between consumers and providers of goods or services do not fall under this category. The law stipulates that the party may select arbitration or litigation in this instance. The dispute cannot be arbitrated without the consent of the consumer, even if the agreement includes a standard arbitration clause in the contract for the supply of goods or services. Legislators have complete discretion over whether or not to expand or maintain the categories of disputes that can be resolved through arbitration. A dispute arising from investment activities governed by the Law on Investment is an illustration of a dispute in category (3).

Due to the fact that many businesses would rather avoid the high costs of litigation, arbitration has grown in popularity.

Arbitration lawyers in Vietnam at ANT Lawyers - a Vietnam law firm with accreditation in national and international arbitration practice can assist in providing clients with legal advice and guidance throughout the process of resolving disputes. The intervention attorneys could likewise exhort the clients on different issues from decision of authority, decision of assertion rules, specially appointed or institutional discretion, spot of mediation, implementation of arbitral honor. 

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What is Business Registration Certificate in Vietnam?

What is Business Registration Certificate in Vietnam?

Business registration certificate is considered a legal document of an organization, which is a paper or electronic document that records information related to business registration that the Business Registration Authority grants to an enterprise.

How to Obtain Business Registration Certificate in Vietnam?

According to the provisions of the Law on Enterprises, a business registration certificate must contain the following principal contents: Enterprise name and enterprise code; Address where the head office of the enterprise is located; Full name, contact address, nationality, number of legal papers of the individual, for the legal representative of limited liability companies and joint stock companies; for general partners of a partnership company; for business owners of private enterprises. Full name, contact address, nationality, number of legal papers of the individual, for members being an individual; name, enterprise identification number and head office address of the member being an organization, for limited liability companies; Charter capital for companies, investment capital for private enterprises.

In which, the name of the enterprise must be a Vietnamese name consisting of two elements: type of business and proper name. Currently, Vietnam recognizes four types of enterprises: limited liability companies, joint stock companies, partnerships and private enterprises. The enterprise’s proper name can be written with the letters of the Vietnamese alphabet, the letters F, J, Z, W, numbers and symbols. The enterprise code element recorded on the Certificate of Business Registration is a series of numbers created by the National Information System on Business Registration, issued to an enterprise upon its establishment, and recorded on the Certificate of Business Registration. Each business has only one unique code and that code will not be reused for other businesses.

The business registration can be carried out directly at the Vietnam Business Registration Office or through the postal service or through the electronic information network. If choosing the form of enterprise registration via electronic information network, the enterprise founder shall submit an application at the National Enterprise Registration Portal. Business registration documents will be presented in electronic form and have the same legal value as paper business registration documents.

The business registration agency is responsible for reviewing the validity of the enterprise registration dossier and granting the Business registration certificate within 03 working days from the date of receipt of the application. In case the application is not sufficient or not prepared according to the regulations, the business registration agency must notify in writing the contents that need to be amended and supplemented to the enterprise founder. If the business registration authority refuses to register the enterprise, it must notify in writing the enterprise founder and clearly state the reasons. The company could prepare its own submissions or hire a Vietnam business lawyers to assist with the submissions.

With highly professional staff and great experience in foreign investment, ANT Lawyers could help to support you to Obtain Business Registration Certificate in Vietnam.

Source ANT Lawyers: https://antlawyers.vn/library/what-is-business-registration-certificate-in-vietnam.html 

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What Are the Advantage of Foreign Investors in Setting up Business in Vietnam in 2023?

What Are the Advantage of Foreign Investors in Setting up Business in Vietnam in 2023?

Located in an important position of Southeast Asia, Vietnam has a long coastline of more than 3,000 km. With a diverse geographical structure interspersed with mountainous, highland and coastal areas suitable for general economic zones, Vietnam has ideal conditions to develop the trade and tourism industries. When setting up business in Vietnam, investors can enjoy financial advantage such as corporate income tax, import and export tax and land finance incentives.

Incentives on corporate income tax: In recent years, Vietnam has gradually reduced the corporate tax rate (CIT). In the 2004-2008 period, CIT was 28%, in the 2009-2013 period it was 25%, from 2014 to 2015, 22% and from January 1, 2016 until now, 20%. In addition, the provision of high corporate income tax incentives for a number of key fields that need to be encouraged for investment has contributed to attracting investment, encouraging business, creating favorable conditions for enterprises to increase accumulation, increase investment in the economy, and promote growth, hence promoting investors in setting up company in Vietnam.

Import and export tax incentives: The 2016 Import and Export Tax Law has added regulations that high-tech enterprises, science-technology enterprises, science-technology organizations are exempted from import tax on raw materials, materials and components that cannot be produced domestically within 5 years from the date of commencement of production. There are also import and export tax incentives being applied such as:

(i) Exemption from import tax for goods imported for processing for foreign countries and when exporting and returning products to foreign parties, they are exempt from export tax;

(ii) Goods imported for processing that are exempted from tax, goods temporarily imported for re-export and goods being raw materials and supplies in service of the production of exported goods can be extended the tax payment time to 275 days from the date of filing the customs declaration; goods temporarily imported for re-export may be extended the tax payment time to 15 days from the expiration date;

(iii) Exemption from import tax on goods to create fixed assets for investment projects in areas of special investment encouragement, investment promotion fields and investment projects in the locality have difficult socio-economic conditions.

Incentives on land finance: Foreign enterprises investing in Vietnam can be applied adjusted reduce rate (%) calculating the general land rent from 1.5% to 1%. In addition, the State also stipulates the application of the land price adjustment coefficient in determining the land price to calculate the land rent, therefore, making Vietnam increasingly becoming a favourable destination to attract foreign investment and company establishment in Southeast Asia.

In addition, the development of a transparent and consistent investment legal system is increasingly becoming a good tool to promote foreign direct investment inflows into Vietnam in the spirit of the state ensuring the rights of the investors’ ownership, investment capital and other interests of foreign organizations and individuals, creating favorable conditions and simplifying procedures for such organizations and individuals to invest in Vietnam. Compared with the foreign investment laws of some countries in the region, the law on foreign investment in Vietnam is considered by the international public to be more open and attractive, for example applying the form of 100% foreign capital ownership, administrative procedures are simplified, non-discriminatory between Vietnamese enterprises and foreign-invested enterprises. The law has been transforming in the direction of considering investment and business as the matters of enterprises and investors, which the investors have full authority to make decisions from investment projects to the formation and business of the enterprise and that the government only guides, creates an open legal environment, has favorable mechanisms and procedures, supervises and enforce the law.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

Source ANT Lawyers: https://antlawyers.vn/library/what-are-the-advantage-of-foreign-investors-in-setting-up-business-in-vietnam.html   

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Professional law firm in Vietnam

ANT Lawyers is a law firm in Vietnam with offices in Hanoi and Ho Chi Minh City. We are a Vietnam-based law firm that is a part of Prae Legal, a global network of 150 countries and five continents of law firms. We have developed relationships with lawyers from all over the world as a result of this network. ANT Lawyers are able to handle international cases involving foreigners because of this collaboration.

We focus on providing potential solutions that best meet the requirements of business and legal clients as a reputable law firm in Vietnam. We help customers achieve their goals while protecting their interests, minimizing risks, and following the law.

We offer corporate and individual clients from all industries a comprehensive array of contentious and non-contentious legal services. We are able to offer guidance on a wide range of topics, from setting precedent to strictly procedural matters, thanks to our knowledgeable and highly skilled staff.

As a consequence of this, our clients can rest assured that, regardless of the case or transaction, our lawyers at the law firm in Vietnam possess the expertise necessary to provide legal guidance and service that is relevant to the business world. 

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How Vietnam Has Simplified Procedures to Register Business in Vietnam?

By the end of 2019, there have been more than 30,000 FDI projects choosing Vietnam for investment, with a total registered capital of about 362 billion USD. Recently, business propensity of Vietnam is highly concentrated on the private sector, attracting foreign investors to the Vietnam market.

As Vietnam has built diplomatic relationship with nearly 190 countries around the world and signed about 15 Free Trade Agreements with important trading partners, Vietnam’s participation in various free trade agreements has created a strong impetus for foreign investors from developed countries to set their first steps in the Vietnam.

To be able to register a business in Vietnam, investors need to carry out procedures to apply for the Investment Registration Certificate. After being granted the Investment Registration Certificate, the investor shall  then apply for Enterprise Registration Certificate.

To carry out the process of applying for the Enterprise Registration Certificate, firstly, the investors need to choose a name for the business, which must not be identical or confusing to the name of another business already registered in the National Database of Business Registration on a national scale, except for businesses that have been dissolved or have had effective court decisions declaring businesses bankrupt.

After that, the investors or the authorized person need to prepare a complete set of application dossiers in accordance with the law and submit it at the Business Registration Office where the head office is planned to be located. The Business Registration Office will check the validity of the application dossier, based on the appointment date on the Receipt, the investors or the authorized person can go to the Business Registration Office to receive the results of the application or Register to receive results by post. The time limit for considering and handling the dossier is 03 working days from the date of receiving the valid dossier.

The investor will be granted an Enterprise Registration Certificate when fully meeting the following conditions:

-The registered business lines are not in the prohibited business sectors;

-The business’s name is set in accordance with the provisions of law;

-Having a head office as prescribed by law;

-Having a valid business registration dossier as prescribed by law;

-Fully paying the enterprise registration fee as prescribed by law

Over the years, investors have built confidence in the Vietnam’s business and investment environment. The socio-political and macroeconomic stability are prominent features for the growth of Vietnam’s business potential. The Vietnam government has determined to  simplify the process for investment application. Hence, Vietnam is and will continue to be an attractive investment location, a promising destination for foreign investors for applying for investment registration certificate and register a business in Vietnam compared with other neighboring countries in the region.

ANT Lawyers – a law firm in Vietnam will always follow up with authorities for legal update on matters relevant to investment registration or business setting-up in Vietnam.

Source ANTLawyers: https://antlawyers.vn/library/procedures-to-register-business-in-vietnam.html

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How US Authorities Could Request for Help on Taking the Evidence in Vietnam for Civil or Commercial Matters?

How US Authorities Could Request for Help on Taking the Evidence in Vietnam for Civil or Commercial Matters?

The Evidence Collection Convention is a multilateral Hague Conference convention that was signed on March 18, 1970 and went into effect on October 7, 1972. The objective of the Convention is to facilitate the collection of evidence and to harmonize the methods of evidence collection between States.

Evidence Law in Vietnam

On May 3, 2020, Vietnam became a party to the Convention on the Collection of Evidence Abroad. After becoming a member of this Convention, Vietnam only applies and accepts requests for evidence collection by a written request as described in Chapter I of this Convention. As a result, Vietnam does not use the process of gathering evidence carried out by a diplomatic officer, consular officer, or authorized person in Chapter II of the Convention.

Procedures for collecting evidence between the United States and Vietnam under the Hague Convention

Both Vietnam and the United States are parties to the Convention on Collection of Evidence. However, since Vietnam only participates in collecting evidence in writing, the United States has to collect evidence in Vietnam via this method.

Step 1: The U.S. Agency sends a written request to collect evidence to the Ministry of Justice of Vietnam

In the settling a case involving a civil or commercial field, the party can request the Court to assist in collecting evidence in Vietnam. The US judicial agency will issue a written request for evidence collection to the competent Vietnamese agency (specifically, the Ministry of Justice). This document must ensure that follow the contents of Article 3 of the Convention, and must be written in Vietnamese or accompanied by a Vietnamese translation and delivered via postal service.

Step 2: A written request for evidence collection is received by Vietnam’s Ministry of Justice

The Ministry of Justice of Vietnam will receive the request for evidence and decide whether or not to comply with the request for evidence collection. In the event of a refusal, the Ministry of Justice of Vietnam must clearly state the reasons specified in Article 12 of this Convention. For example, the request is not within the scope of the Convention in the civil and commercial fields, or the implementation of which may be detrimental to the sovereignty and security of that country, etc.

Step 3: The Ministry of Justice requests competent agencies to collect evidence

After having sufficient grounds to handle the request of the U.S. Agency, the Department of Justice will send a written acceptance of the request to collect evidence to the United States and forward it to the competent domestic agency for collection evidence process. The Vietnam agency will notify the U.S. Agency of the time, place, and procedures to collect evidence to be followed so that relevant parties and their representatives can be present.

When making the written request, a judicial officer from a U.S. agency may be present, and this presence has to be approved by the Vietnam Agency. Further, according to Article 11 of this Convention, the person being asked to provide evidence has the right to refuse to comply with the request for evidence collection if required by Vietnam law or  in the written request for evidence collection state that they can refuse to provide evidence expressly stated.

Step 4: The Ministry of Justice of Vietnam sends a written response on the results of evidence collection to the U.S. Agency

After receiving the results of evidence collection from other agencies, the Ministry of Justice sends a written response to the results of evidence collection to the U.S. Agency to compete the process.

To comply with the process and ensure the evidence could be properly collected for usage in trial, it is important to consult with dispute lawyers in Vietnam for legal advice.

ANT Lawyers, as a law firm in Vietnam, will always follows up the evidence in Vietnam for civil or commercial matters to update clients on regular basis.  

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GUIDING DECREE NO. 80/2021/ND-CP DATED AUGUST 26, 2021 OF THE GOVERNMENT ELABORATING LAW ON PROVISION OF ASSISTANCE FOR SMALL AND MEDIUM ENTERPRISES

MINISTRY OF PLANNING AND INVESTMENT OF VIETNAM -------	SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness ----------------
No. 06/2022/TT-BKHDT	Hanoi, May 10, 2022

CIRCULAR

GUIDING DECREE NO. 80/2021/ND-CP DATED AUGUST 26, 2021 OF THE GOVERNMENT ELABORATING LAW ON PROVISION OF ASSISTANCE FOR SMALL AND MEDIUM ENTERPRISES

Pursuant to the Law on Provision of Assistance for Small and Medium Enterprises dated June 12, 2017;

Pursuant to Decree No. 80/2021/ND-CP dated August 26, 2021 of the Government elaborating Law on Provision of Assistance for Small and Medium Enterprises;

Pursuant to Decree No.86/2017/ND-CP dated July 25, 2017 of Government on functions, tasks, powers, and organizational structure of Ministry of Planning and Investment;

At request of Director of Enterprise Development Agency;

The Minister of Planning and Investment promulgates Circular guiding Decree No. 80/2021/ND-CP dated August 26, 2021 of the Government elaborating Law on Provision of Assistance for Small and Medium Enterprises.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. Scope: This Circular guides Decree No. 80/2021/ND-CP dated August 26, 2021 of the Government elaborating Law on Provision of Assistance for Small and Medium Enterprises (hereinafter referred to as “SME”) regarding technical assistance (not including Clause 5 Article 11 of Decree No. 80/2021/ND-CP); counseling; human resource development (not including Clause 4 Article 14 of Decree No. 80/2021/ND-CP); assistance for business startup of SMEs; assistance for participation of SMEs in industrial cluster and value chain; management of assistance provided for SMEs.

2. Regulated entities:

a) Enterprises established, organized, operating in accordance with laws on enterprises, and meeting regulations under Chapter II of Decree No. 80/2021/ND-CP regarding criteria for identifying SMEs.

b) Ministries, ministerial agencies, Governmental agencies, People’s Committees of provinces and central-affiliated cities (hereinafter referred to as “provincial People’s Committees”).

c) Agencies and authorities providing assistance for SMEs.

d) Providers of SMEs’ assistance products and services. In case the provider is an organization, the organization must be established and operated in accordance with Vietnam’s laws.

dd) Agencies, organizations and individuals relating to the provision of assistance for SMEs.

Article 2. Definition

1. “number of employed employees participating in social insurance in accordance with Clause 1 Article 7 of Decree No. 80/2021/ND-CP” refers to the total number of employees signing indefinite term employment contracts and employees signing fixed-term employment contracts under 36 months of SMEs participating in social insurance. In which, employees signing fixed-term employment contracts under 36 months may have their social insurance paid by SMEs or other entities.

2. “SMEs manager” refers to an individual managing an enterprise in accordance with Clause 24 Article 4 of the Law on Enterprises No. 59/2020/QH14.

3. “SMEs in area with extremely disadvantaged socio-economic conditions” refers to an enterprise whose head office is located in any area under Appendix III of Decree No. 31/2021/ND-CP dated March 26, 2021 of the Government elaborating and guiding implementation of the Law on Investment.

4. “chain leading enterprise” refers to an enterprise established and operating in accordance with Vietnam’s laws, foreign country’s laws, meeting regulations under Clause 11 Article 3 of Decree No. 80/2021/ND-CP and entering into a contract for purchase of products of SMEs.

5. “startup investment fund" refers to a fund created by donations of private investors in Vietnam, foreign countries, and established in accordance with Vietnam’s laws to finance business startup.

6. “electronic document" refers to a document in electronic form that is created online or from a physical document and adequately reflecting the contents of the physical document.

7. “agencies and organizations providing assistance for SMEs” refer to agencies, entities, and public service providers affiliated to ministries, ministerial agencies, Governmental agencies, provincial People’s Committees, and public service providers affiliated to agencies, entities affiliated to ministries, ministerial agencies, Governmental agencies, provincial People’s Committees conducting activities relating to provision of assistance for enterprise development.

Article 3. Guiding provision of assistance for SMEs

1. Agencies and organizations providing assistance for SMEs shall prioritize funding for SMEs owned by women, SMEs employing a lot of female workers, and SMEs that are social enterprises.

2. Agencies and organizations providing assistance for SMEs shall rely on Article 5 of Decree No. 80/2021/ND-CP to choose criteria for identifying micro, small, and medium enterprises in order to provide the most beneficial assistance for SMEs.

3. Agencies and organizations providing assistance SMEs shall identify scale of SMEs, SMEs owned by women, SMEs employing a lot of female employees based on declaration under Appendix 1 of Decree No. 80/2021/ND-CP. If information declared by SMEs needs to be cross-checked, agencies and organizations providing assistance for SMEs shall rely on the following documents:

a) In order to verify scale of SMEs:

- Balance sheet and income statement in financial statement.

- List of employees employed by SMEs together with respective proof of social insurance payment. In case of employees who have their social insurance paid by other entities, SMEs shall issue written confirmation regarding these employees’ social insurance payment.

b) In order to verify that SMEs employ a lot of female employees: SMEs satisfy Point a Clause 3 of this Article and have percentage of female employees satisfying Clause 8 Article 3 of Decree No. 80/2021/ND-CP.

c) In order to verify that SMEs are owned by women: Agencies and organizations providing assistance for SMEs shall look in capital contribution percentage of female enterprise managers on National Business Registration Portal or shareholder register in case of joint stock company.

4. SMEs may propose multiple types of assistance in the same application for assistance. SMEs are only allowed to submit application for one type of assistance to one agency or organization providing assistance for SMEs at any given time.

5. SMEs are not limited in terms of number of assistance instances or number of assistance contracts for types of assistance calculated by million VND/year/enterprise or million VND/year as long as maximum assistance percentage, quota under Decree No. 80/2021/ND-CP.

6. Agencies, organizations providing assistance for SMEs shall disclose SME assistance information as follows:

a) Register accounts on National information portal for SME assistance (hereinafter referred to as “Web portal”) at https://business.gov.vn and declare information in accordance with Point d Clause 5 Article 28 and Clause 6 Article 29 of Decree No. 80/2021/ND-CP.

b) Disclose information under Point a of this Clause and detail information on focal point, methods of receiving and resolving assistance request of SMEs on website of their agencies, entities; lists of SME assistance products and services provided by their entities; database on SMEs provided with assistance and relevant details.

7. Documents relating to request of SME assistance under Point b Clause 4 Article 32 of Decree No. 80/2021/ND-CP submitted to agencies, organizations providing assistance for SMEs that are uncertified copies of original copies. If necessary, agencies, organizations providing assistance for SMEs shall request SMEs to provide original copies for cross-checking.

8. Forms, schedules attached hereto, and application for assistance submitted by SMEs to authorities can be in physical form (in person submission) or electronic form (online submission) and be accompanied by original copies for cross-checking at request. Electronic documents shall be stored in accordance with regulations and law on storage and presented when necessary.

9. SMEs shall only receive counseling mentioned under Decree No. 80/2021/ND-CP and this Circular when they use counselors within counselor network.

Article 4. Activities eligible for assistance from state budget

Agencies, organizations providing assistance for SME shall identify activities eligible for assistance from state budget under Clause 3 Article 32 of Decree No. 80/2021/ND-CP as follows:

1. Regarding counseling assistance: fee for counseling SMEs; field survey, meeting participation, and work trips of counselors; interpretation for foreign counselors; management activities of counseling organizations (if organizations act as counselors).

2. Regarding types of assistance under Clause 5 Article 2; Points c and dd Clause 6 of Article 22; Clause 1 Article 25; Point d Clause 3 Article 25 of Decree No. 80/2021/ND-CP: conform to Article 15 and Article 18 hereof.

3. Regarding types of assistance under Clause 2 Article 11; Clause 1 Article 22; Points b and c Clause 3 Article 22; Points b and c Clause 4 Article 25; Clause 5 Article 25 of Decree No. 80/2021/ND-CP: conform to field-specific legislative documents guiding technical, economic standards and norms. If the aforementioned regulations are not available, rely on work items specified under quotation of suppliers on the market to ensure legitimacy, adequacy, effectiveness, and fulfillment of SMEs’ demands.

Article 5. Guiding procedures for providing assistance for SMEs

Agencies and organizations providing assistance for SMEs shall assistance SMEs in accordance with Article 32 of Decree No. 80/2021/ND-CP, to be specific:

1. Compositions of written application include:

a) Declaration using form under Appendix 1 attached to Decree No. 80/2021/ND-CP, which specifies budget amount requested and quotation of the suppliers (if any).

b) Documents relating to the requested assistance: Documents verifying startup SMEs under Clauses 1 and 2 Article 14 hereof; verifying SMEs’ participation in industrial cluster, value chains in manufacturing, processing sectors of Article 16 and Article 17 hereof; other relevant documents (if any).

2. Regarding assistance for human resource development for SMEs in accordance with Clauses 1, 2, and 3 Article 14 of Decree No. 80/2021/ND-CP: agencies and organizations providing assistance for SMEs shall conform to Section 2 Chapter II hereof.

3. Regarding technology, counseling assistance, assistance for SME startup, assistance for SMEs' participation in industrial cluster, value chain under Clauses 1, 2, 3, and 4 Article 11, Clause 2 Article 13, Article 22, Article 25 of Decree No. 80/2021/ND-CP: agencies and organizations providing assistance for SMEs shall conform to Clause 3 Article 32 Decree No. 80/2021/ND-CP (contract sample under Appendix 1 hereof).

4. Agencies and organizations providing assistance for SMEs shall review application, consolidate SMEs’ request for assistance, approve SME support plan on an annual or quarterly basis. The selection of suppliers for executing SME assistance plan shall conform to bidding laws.

Article 6. Management of assistance for SMEs

1. General management

a) General management activities include: conducting communication activities regarding assistance and types of assistance provided for SMEs; organizing seminars, conferences guiding, concluding SME assistance operation; organizing groups for assessing implementation of SME assistance; surveying SME assistance demand to produce assistance plans and estimates for the planning year.

b) Ministry of Planning and Investment shall receive no more than 1% of total annual expenditure of central government budget on SME assistance to finance general management of SME assistance on a nationwide scale.

c) Contact point authorities of ministries, ministerial agencies, Governmental agencies (entities assigned to take charge and cooperate with relevant entities in developing policies, organizing implementation, assessing, consolidating reports on implementation results of SME assistance) and Departments of Planning and Investment of provinces and cities shall receive no more than 2% of total annual expenditure of state budget on SME assistance to finance general management of SME assistance within their management.

2. Direct management

Agencies and organizations providing assistance for SMEs shall receive no more than 5% of annual state budget on SME assistance to finance direct management of SME assistance, including:

a) Activities that assistance SME: going on business trip; working overtime; communicating; organizing meetings, conferences; hiring experts; conducting surveys at enterprises; other activities directly serving SME assistance.

b) Activities of Council for selecting startup SMEs under Clause 3 Article 21 of Decree No. 80/2021/ND-CP: reviewing documents of startup SMEs; hiring experts; working overtime; communicating; organizing review meetings; appraising selection result of startup SMEs; conducting other activities related to activities of the Council.

c) The selection of suppliers shall be made in accordance with bidding laws.

Chapter II

ASSISTANCE FOR SMALL AND MEDIUM ENTERPRISES

Section 1. TECHNOLOGY ASSISTANCE AND COUNSELING

Article 7. Technology assistance

SMEs shall receive technology assistance in accordance with Clauses 1, 2, 3, and 4 Article 11 of Decree No. 80/2021/ND-CP. Agencies and organizations providing assistance for SMEs shall provide assistance in accordance Article 4, Article 5 hereof and the following regulations:

1. SMEs shall receive financing for renting or purchasing digital transformation solutions publicized on the Web portal or website of Ministry of Information and Communication or website of suppliers.

2. SMEs shall assess level of digital transformation readiness to make appropriate assistance propositions. SMEs shall utilize digital readiness assessment tools uploaded on https://digital.business.gov.vn or https://dbi.gov.vn or issued by agencies and organizations providing assistance for SMEs.

3. Agencies and organizations providing assistance for SMEs shall use digital readiness assessment results of SMEs to consider and provide assistance depending on accessibility of SMEs.

Article 8. Counselors

1. Counselors mentioned under Point a Clause 1 Article 13 of Decree No. 80/2021/ND-CP include:

a) Individual counselors who are Vietnamese nationals (not including officials and public officials under Law on Officials and Public Officials) and foreigners working in Vietnam.

b) Organization counselors which are juridical persons, established, and operating in accordance with Vietnamese laws, specialized in counseling enterprises.

2. Apply for participation in counselor network:

a) Organization, individual counselors shall submit application to respective ministries, ministerial agencies. Documents in foreign languages will require certified Vietnamese translation.

b) Counselors shall access the Web portal, register, and be issued login accounts by Ministry of Planning and Investment in order to update information on counselor network. Counselors are legally responsible for accuracy of information disclosed on the Web portal.

3. Update counselor’s information:

a) When new information and/or documents relating to capacity and experience of a counselor arise, the counselor shall update on their profile on the Web portal while requesting ministries, ministerial authorities to update the profile of accredited counselor.

b) In case provided information is found to be incorrect but capacity of counselors in terms of training level, professional, and counseling experience is not altered, counselors shall adjust on the Web portal while requesting ministries, ministerial agencies where the counselors are accredited to adjust.

4. Counselors are allowed to participate in training courses for counseling skills, procedures, and knowledge organized by ministries, ministerial agencies free of charge in accordance with Clause 3 Article 9 hereof.

Article 9. Counselor network

1. Establish counselor network

a) Ministries, ministerial agencies shall promulgate a decision or decisions (using form under Appendix 2 hereof) regulating field of counseling, criteria for accrediting counselors, cases in which counselors are removed from counselor network upon violating the law or cases in which counselors are removed from counselor network according to regulations of ministries, ministerial agencies.

Criteria for accrediting counselors must specify training level, professional level, counseling experience, and conditions according to the laws and rules of presiding authorities.

b) Ministries, ministerial agencies shall accredit or authorize affiliated entities to accredit counselors participating in the counselor network (hereinafter referred to as “counselor accrediting bodies”) and review cases in which counselors are removed from counselor network.

- Accreditation of counselors participating in counselor network includes: reviewing application for participation in counselor network; contacting and guiding counselors to complete their profile; accrediting counselors in counselor network; guiding counselors to register accounts and update information on database on counselors on the Web portal; verifying and allowing counselors to appear public on the Web portal.

- Removal of counselors from counselor network includes: reviewing profile of counselors in the network; contacting and notifying counselors about being removed from the network; producing lists of counselors removed from the network; withdrawing counselor profile from the Web portal.

c) Counselor accrediting bodies shall publicize field of counseling, criteria for accrediting counselors, list of counselors in the network, list of counselors removed from the network on websites of ministries, ministerial agencies, or websites of counselor accrediting bodies.

d) Counselor accrediting bodies shall register and be issued accounts of the Web portal by Ministry of Planning and Investment in order to carry out activities under Point b Clause 1 of this Article.

2. Management, operation, and maintenance of counselor network

a) Procurement, software development for managing counselor network; procurement, upgrade, and maintenance of hardware, services, servers, and other services on a regular basis to archive and operate counselor network; develop, maintain, and update counselor network data.

b) Organization of conferences, seminars, conclusion, and assessment of establishment, management, operation, and maintenance of counselor network.

c) Accreditation and removal of counselors from counselor network under Point b Clause 1 of this Article. Expenditure on accrediting counselors or removing counselors from counselor network shall not exceed 300 thousand VND/counselor and paid to counselor accrediting bodies.

3. Improvement and training for development of counselor network

a) Counselor accrediting bodies shall organize or cooperate with suppliers in organizing training courses for skills, procedures, and knowledge of counselors in their network.

b) Details of training courses for counselors:

No.	Training course	Training contents	Training duration	Minimum number of learners/course	training organization
1	Short-term	Standardize counseling skills, procedures, and knowledge depending on requests of counselors and field-specific development objectives of counselors	3 to 5 days (consecutive or not). In which, may use up to 40% of the duration to allow learners to practice (if necessary).	20	Section 7 Appendix 3.2
2	Long-term		6 to 60 days (consecutive or not). In which, may use up to 40% of the duration to allow learners to practice (if necessary).

Article 10. Counseling assistance

SMEs shall receive counseling assistance in accordance with Clause 2 Article 13 of Decree No. 80/2021/ND-CP. Agencies and organizations providing assistance for SMEs shall provide assistance in accordance with Article 4 and Article 5 hereof.

Section 2. HUMAN RESOURCE DEVELOPMENT ASSISTANCE

Article 11. Human resource development assistance

Human resource development assistance under Clauses 1, 2, and 3 Article 14 of Decree No. 80/2021/ND-CP refers to training assistance provided for SMEs. Agencies and organizations providing assistance for SMEs shall provide assistance in accordance with Clauses 1 and 2 Article 5 of this Circular and the following regulations:

1. Training units refer to agencies and organizations providing assistance for SMEs (if they directly provide training services) or the suppliers (if agencies and organizations providing assistance for SMEs do not directly provide training services).

2. In-class training courses for enterprise administration mentioned under Point a Clause 1 Article 14 of Decree no. 80/2021/ND-CP include basic enterprise administration training courses and advanced enterprise administration training courses.

3. Online training courses via available online teaching tools such as Zoom Cloud Meeting, Microsoft Teams, Google Classroom, and other similar tools:

a) Based on plans for organizing online training courses in the year, training units shall purchase accounts of available online teaching tools and accounts of aid software (hereinafter referred to as “tools”); rent specialized equipment serving online training courses (hereinafter referred to as “specialized equipment”) depending on scale of training courses.

b) If tools and specialized equipment are purchased or rented for each course, rent and purchase cost shall be included in additional costs of each course. In case service bundles are purchased or rented on a quarterly or annual basis, rent and purchase cost shall be distributed over costs for organizing each training course.

4. Training units may organize training courses under Clause 1 and Clause 3 Article 14 of Decree No. 80/2021/ND-CP by combining both in-class training and online training via available online teaching tools (hereinafter referred to as “combined training method”) with unchanged financing from state budget only if at least 30% of total learners participate in in-class training, to be specific:

a) 100% of learners participate in in-class training: lecturers shall provide full online training or combine in-class training and online training.

b) From 30% of learners participate in in-class training while the rest participate in online training: lecturers shall provide full in-class training, or full online training, or a combination of in-class training and online training.

c) Upon selecting combined training method under Points a and b Clause 4 of this Article, training units shall develop respective expenditure estimates.

Article 12. In-class training for business startup and enterprise administration

Assistance for in-class training under Clauses 1 and 3 Article 14 of Decree No. 80/2021/ND-CP shall conform to the following regulations:

No.	Training course	Training topic	Training duration	Target learners	Minimum number of learners/course	training organization
1	Business startup	Section 1 Appendix 3.1	From 1 to 2 days; In case of 2-day classes, up to 40% of the training duration can be used to facilitate practice of learners (if necessary).	Employees, managers of specialized departments, managers of SMEs. In which, SMEs are enterprises converted from household businesses or SMEs established within 5 years prior to the year in which training course is organized	30	Section 3 Appendix 3.2.
2	Basic enterprise administration	Section 2 Appendix 3.1	From 2 to 5 days. Up to 40% of duration of classes that last at least 3 days can be used to facilitate practice of learners (if any).	Employees, managers of specialized departments, managers of SMEs.	30	Section 2 Appendix 3.2.
3	Advanced enterprise administration	Section 3 Appendix 3.1	From 5 to 28 days (consecutive or not). In which, may use up to 40% of the duration to allow learners to practice (if necessary).	Managers of specialized departments, managers of SMEs.	20	Section 1 Appendix 3.2.
4	Training at SMEs	Section 4 Appendix 3.1		Employees, managers of specialized departments, managers of SMEs.	10	Section 4 Appendix 3.2.

Article 13. Online training for business startup and enterprise administration

Assistance for online training under Clause 2 Article 14 of Decree No. 80/2021/ND-CP shall conform to the following regulations:

No.	Online training	Training topic	Training duration	Target learners	Number of learners	training organization
1	Online training system of Ministry of Planning and Investment and provincial People’s Committees (hereinafter referred to as “E-learning system”)	Section 5 Appendix 3.1	Each lecture video lasts up to 20 minutes Each lecture comprises of multiple videos.	Employees, managers of specialized departments, managers of SMEs	No restrictions	Section 6 Appendix 3.2
2	Online training courses via available online teaching tools		Similar to training courses under Clauses 1, 2, and 3 Article 13 hereof.			Section 5 Appendix 3.2

Section 3. ASSISTANCE FOR SME STARTUP

Article 14. Choosing startup SMEs

1. Agencies and organizations providing assistance for SMEs shall choose startup SMEs to provide assistance in accordance with Clause 1 Article 21 of Decree No. 80/2021/ND-CP based on the following documents:

a) Certificates of national, international awards for business startup or startup products, projects. The certificates must be awarded within 5 years prior to the date on which SMEs apply for assistance;

b) Patent of inventions or science technology enterprise certificates or hi-tech enterprise certificates as long as these documents are still effective at the time SMEs apply for assistance.

2. Agencies and organizations providing assistance for SMEs shall choose startup SMEs to provide assistance in accordance with Clause 2 Article 21 of Decree No. 80/2021/ND-CP based on the following documents:

a) Capital contribution agreements or documents verifying minimum investment of startup investment fund of 1 billion VND; investment must take place within 5 years prior to the date on which SMEs apply for assistance;

b) Written commitments of startup investment funds for a minimum investment of 500 million VND; the commitment must be produced within 1 year prior to the date on which SMEs apply for assistance;

c) Written confirmation or contracts indicating ongoing assistance for startup SMEs of common workspaces, business startup enterprises, service providers, incubation facilities, business promotion facilities, business startup centers; or written commitments or contracts indicating incoming assistance for SMEs. assistance must be confirmed, guaranteed within 6 months prior to the date on which SMEs apply for assistance.

3. Agencies and organizations providing assistance for SMEs shall choose startup SMEs in accordance with Clause 3 Article 21 of Decree No. 80/2021/ND-CP on the basis of decision of the Council regarding eligibility of SMEs for assistance.

Article 15. Startup SME assistance

Startup SMEs shall receive assistance in accordance with Article 22 of Decree No. 80/2021/ND-CP. Agencies and organizations providing assistance for SMEs shall provide assistance in accordance with Article 4 and Article 5 of this Circular and the following regulations:

1. Assist learners of SMEs to participate in advanced training in Vietnam and foreign countries under Clause 2 Article 22 of Decree No. 80/2021/ND-CP, including: tuition, materials, accommodations, meals, travel (including plane tickets).

Short-term advanced training courses in foreign countries include: developing products; commercializing products; developing e-commerce; attracting investment; developing market; connecting startup network and other details depending on demands of startup SMEs.

2. Assist learners to maintain accounts on e-commerce platforms under Point c Clause 6 Article 22 of Decree No. 80/2021/ND-CP, including:

a) Regarding e-commerce platforms in Vietnam: payment fees, fixed fees, and service fees paid by the sellers to e-commerce platforms.

b) Regarding international e-commerce platforms: fees of seller account, referral fee, order completion fee, storage fee, product bar code registration fee, product design and photography costs, and advertising costs.

3. Assist SMEs to participate in international competitions regarding business startup in accordance with Point dd Clause 6 Article 22 of Decree No. 80/2021/ND-CP, including: fees for participating; staying in host countries; travelling (including plane tickets); transporting documents, products, and equipment serving competitions.

Section 4. ASSISTANCE FOR SME’S PARTICIPATION IN INDUSTRIAL CLUSTER, MANUFACTURING AND PROCESSING CHAIN

Article 16. Selecting SMEs in industrial cluster in manufacturing and processing

1. Forms of connection between SMEs and other enterprises in industrial cluster under Clause 2 Article 23 of Decree No. 80/2021/ND-CP include:

a) Connection in form of contracts for shared purchase of input materials: SMEs and at least another enterprise in industrial cluster enter into contract for purchase of input materials from the same suppliers.

b) Connection in form of contracts for shared sale of products: SMEs and at least another enterprise in sector connection enter into contract for selling products to the same buyers.

c) Connection in form of contracts for purchase, sale, and cooperation refers to:

- SMEs enter into contracts for product purchase, sale with at least another enterprise in industrial cluster;

- SMEs enter into contracts for cooperation with at least another enterprise in industrial cluster.

d) Connection in form of joint connection, use of brands refers to:

- SMEs and at least another enterprise in industrial cluster use accredited collective mark or certification mark or geographical indication according to intellectual property laws;

- SMEs and at least another enterprise in industrial cluster produce goods, commodities (not including community based tourism services and tourist attractions) and have products ranked at 3 stars or higher under the One Country One Product Program (OCOP).

2. Agencies and organizations providing assistance for SMEs shall select SMEs in industrial cluster under Clause 1 of this Article to provide assistance based on:

a) For Point a Clause 1 of this Article: at least 1 contract for purchase of input materials between a SME and the supplier and the confirmation (or contract) of the supplier regarding ongoing supply of input materials for other enterprises in industrial cluster.

b) For Point b Clause 1 of this Article: at least 1 contract for sale of products between a SME and the buyer and the confirmation (or contract) of the buyer regarding ongoing purchase of products from at least another enterprise in industrial cluster.

c) For Point c Clause 1 of this Article: at least 1 contract for ongoing product purchase or sale or cooperation between the SME and another enterprise in the industrial cluster.

d) For Point d Clause 1 of this Article: collective mark or certification mark or geographical indication or brand of the OCOP product currently used by the SME.

dd) Apart from cases under Points a through d Clause 2 of this Article, agencies and organizations providing assistance for SMEs shall cooperate with the suppliers or the buyers in determining lists of SMEs that are purchasing input materials or selling products and services in order to choose suitable SMEs for assistance.

Article 17. Selection of SMEs for participation in production, manufacturing value chain

1. Forms of participation of a SME in value chain according to Clause 2 Article 24 of Decree No. 80/2021/ND-CP, including:

a) The SME is a chain leading enterprise established and operating as per Vietnam’s laws.

b) The SME is executing the contract for product and service purchase, sale or cooperation with chain leading enterprises.

c) The SME is considered a prospect supplier for chain leading enterprises by chain leading enterprises or agencies and organizations providing assistance for SMEs.

Agencies and organizations providing assistance for SMEs shall use prospect SME assessment tool publicized by Ministry of Planning and Investment or refer to the list of prospect SMEs uploaded on the Web portal to choose SMEs.

2. Agencies and organizations providing assistance for SMEs shall select SMEs for participation in value chain according to Clause 1 of this Article based on:

a) For Point a Clause 1 of this Article: documents verifying the eligibility of SMEs.

b) For Point b Clause 1 of this Article: at least 1 contract for product sale or purchase or cooperation with chain leading enterprises.

c) For Point c Clause 1 of this Article: confirmation of chain leading enterprises.

Article 18. Assistance for SMEs' participation in industrial cluster, production and processing value chains

SMEs participating in industrial clusters and value chains shall receive assistance in accordance with Article 25 of Decree No. 80/2021/ND-CP. Agencies and organizations providing support for SMEs shall provide assistance in accordance with Article 4 and Article 5 of this Circular and the following regulations:

1. Assist training at enterprises according to Point a Clause 1 Article 25 of Decree No. 80/2021/ND-CP: conform to Clause 4 Article 12 hereof.

2. Assist learners of SMEs to participate in training courses in Vietnam and foreign countries according to Point b Clause 1 Article 25 of Decree No. 80/2021/ND-CP, including: tuition fee; materials; meals; accommodations; traveling (including plane tickets).

Details of training courses shall conform to Section 3 Appendix 3.1 hereof.

3. Assist SMEs to maintain accounts on e-commerce platforms according to Point d Clause 3 Article 25 of Decree No. 80/2021/ND-CP: conform to Clause 2 Article 15 hereof.

Section 5. DEVELOPMENT, CONSOLIDATION, AND ASSIGNMENT OF SME ASSISTANCE PLANS; ASSESSMENT AND REPORT ON SME ASSISTANCE

Article 19. Development, consolidation, and assignment of plans and state budget estimates for SME assistance; assessment and report on SME assistance results

1. Ministry of Planning and Investment shall

a) Guide ministries, ministerial agencies, Governmental agencies, and local governments to develop plans and central government budget estimates for SME assistance (using form under Appendix 4 hereof); consolidate SME assistance demands of ministries, ministerial agencies, Governmental agencies, and local governments where budget is not adequate; request Ministry of Finance to propose plans and estimates of central government budget for SME assistance of the planning year.

b) Develop solutions for assigning SME assistance tasks utilizing central government budget to ministries, ministerial agencies, Governmental agencies, and local governments which are not able to balance the budget based on total central government budget estimates for SME assistance; request Ministry of Finance to report to competent authorities in order to allocate budget estimates.

c) Notify ministries, ministerial agencies, Governmental agencies, and local governments which are unable to balance the budget about SME assistance tasks utilizing central government budget.

d) Take charge and cooperate with relevant authorities in organizing assessment of SME assistance; consolidate and report to the Government, Prime Minister.

2. Ministries, ministerial agencies, and governmental agencies shall

a) Develop plans and estimates of central government budget for SME assistance in the planning year and submit to Ministry of Planning and Investment; consolidate in estimates of ministries, ministerial agencies, and local governments.

b) Develop solutions for assigning SME assistance tasks utilizing central government budget for affiliated agencies and organizations providing assistance for SME; copy and send to Ministry of Planning and Investment for cooperation.

c) Organize implementation of SME assistance adequately; inspect, assess, and be responsible for implementation of plans for SME assistance under their management; submit reports on SME assistance results to Ministry of Planning and Investment.

3. Provincial People’s Committees

a) Assign Departments of Planning and Investment to:

- Develop plans and estimates for central government budget (for provinces that have not been able to balanced the budget) and local government budget for SME assistance; report to provincial People’s Committees and Ministry of Planning and Investment; send to Departments of Finance for consolidation in budget estimates for the provinces;

- Develop solutions for assigning SME assistance tasks utilizing central government budget (for provinces that have not been able to balanced the budget) and local government budget (on the basis of local government budget expenditure estimates) to agencies and organizations providing assistance for SMEs in provinces and request provincial People’s Committees to decide; send to Ministry of Planning and Investment.

b) Implement tasks under Point c Clause 2 of this Article.

Chapter III

ORGANIZATION FOR IMPLEMENTATION

Article 20. Entry into force

1. This Circular comes into force from June 25, 2022.

2. Annul Circular No. 05/2019/TT-BKHDT dated March 29, 2019 of Ministry of Planning and Investment and circular No. 06/2019/TT-BKHDT dated March 29, 2019 of the Ministry of Planning and Investment.

3. In case documents referred to in this Circular expire and/or are replaced by other documents, the new documents shall prevail.

Article 21. Transition clause and organization for implementation

1. SME assistance approved before the effective date hereof shall continue to be implemented according to their approval or be submitted to competent authorities for re-approval (if necessary) from the effective date hereof.

2. Ministries, ministerial agencies, Governmental agencies, and provincial People’s Committees shall provide assistance for SMEs in accordance with this Circular and applicable laws. Difficulties that arise during the implementation of this Circular should be reported to the Ministry for consideration./.

PP. MINISTER DEPUTY MINISTER Tran Duy Dong

 Source: Thư Viện Pháp Luật

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