Directive No. 10/CT-TTg dated March 25, 2025 on promoting the development of small and medium-sized enterprises

DIRECTIVE

ON PROMOTING THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES

The private economic sector, with a focus on small and medium-sized enterprises (SMEs) (which account for about 98% of the total number of active businesses in the economy), has always played a crucial role in the socio-economic development. The private economic sector contributes over 50% of GDP, 30% of the total state budget revenue, and creates over 40 million jobs (accounting for more than 82% of the total workforce in the economy). SMEs are the main force exploring niche markets, maximizing resources within the community to serve socio-economic development. SMEs are present in almost all production and business industries and sectors. With their small- to medium-scale, SMEs always demonstrate flexibility, dynamism, innovation, and successful initiation of new and innovative business models. Even in challenging times, SMEs continue to strive to maintain their production and business activities, demonstrating social responsibility to the community and the country.

However, SMEs still face many difficulties and challenges in achieving rapid, sustainable development in terms of quantity, scale, quality, and efficiency in operation. Despite their large numbers, the quality of the operation of SMEs is not high (about 90% are small-scale, with capital below VND 10 billion), their competitive capacity is limited, and most have not yet participated in export activities and value chains; they lack original technology and potential for digitalizing business operations; corporate governance of such enterprises has not yet reached international standards and practices.

In the context of fast, complex, and unpredictable global developments, the economy of Vietnam has shown a clear and rapid recovery, highlighting macroeconomic stability and growth in the region and the world. In 2024, Vietnam has successfully achieved all 15/15 key targets. 2025 is a particularly important, pivotal year that lays the foundation for Vietnam to enter a new era - an era of vigorous, civilized, and prosperous development for the nation. The enterprise community as a whole, including SMEs, plays a crucial role in achieving the objective of 8% economic growth in 2025 and aiming for two-digit growth in the following years.

To remove barriers and obstacles and provide maximum advantages for SMEs to break through, the Prime Minister requests Ministers, Heads of Ministerial agencies, affiliated agencies of the Government, Presidents of People's Committees of provinces and centrally affiliated cities, and relevant agencies (hereinafter referred to as “ministries, central and local authorities") to continue resolutely, synchronously, and effectively implementing the outlined viewpoints, orientations, objectives, tasks, and solutions, with a focus on the following key aspects:

I. DEVELOPMENT VIEWPOINTS

1. Unify awareness on the important role of SMEs in socio-economic development. Firmly pursue the objective of rapid, sustainable development of SMEs, increase in quantity, quality, scale, efficiency in operation, and making significant contributions to the economy. Strive to have at least 1 million more enterprises by 2030.

2. Prioritize allocating resources to support the development of SMEs, with a focus on supporting small and medium-sized entrepreneurs; improving competitive capabilities to participate in value chains; digital transformation, green transformation, and new business model development; and promoting technology application, innovation, and digital transformation.

3. Relevant ministries, branches and localities must uphold their sense of responsibility, placing people and enterprises at the center, consider the difficulties of people and enterprises as their own difficulties to proactively support, accompany and resolve them in the spirit of “không nói không, không nói khó, không nói có mà không làm”("not avoiding problems, not just making promises without action"), “không hình sự hóa các quan hệ kinh tế, quan hệ dân sự” (“not criminalizing economic relations, civil relations"), with high determination, great effort, drastic action; assign specific tasks in the spirit of “rõ người, rõ việc, rõ trách nhiệm, rõ thẩm quyền, rõ thời gian, rõ kết quả” ("being transparent and clear in every aspects").

4. Promote the role of associations representing the enterprise community, acting as a bridge between enterprises and state regulatory authorities and socio-political organizations; regularly dialogue, exchange information, and resolve difficulties and problems for enterprises in investment and business activities.

5. SMEs continue to promote the tradition of national pride and self-respect, mobilize maximum resources; be proactive, creative, flexible, and innovative, have a breakthrough spirit; dare to think, dare to do, dare to take risks, and have aspirations to develop production and business and enrich themselves and society.

II. KEY TASKS AND SOLUTIONS

1. Regarding the improvement of policies, laws, administrative procedure reforms, creating a favorable and equal investment and business environment for SMEs

a) Ministries, central and local authorities shall:

- Continue to focus on resolutely and effectively performing the tasks and solutions set forth in the Resolutions of the Central Government, Politburo, National Assembly, Government, etc., to remove barriers and difficulties and enable maximum mobilization of resources of SMEs contributing to economic growth and development.

- Minimize administrative procedures: by 2025, reduce at least 30% of administrative procedure processing time; reduce at least 30% of procedure charges and fees; and annul at least 30% of unnecessary business conditions. Shift management from “tiền kiểm” ("pre-inspection") to “hậu kiểm” ("post-inspection"), together with intensifying inspection and supervision efforts.

- Concentrate on administrative reforms, quickly resolve investment procedures, remove difficulties and obstacles for enterprises and projects. Promote the development of e-Government, digital Government to help enterprises access information and public services conveniently and swiftly.

b) The Ministry of Finance shall:

- Urgently complete the draft amendments to the Law on Enterprises, Law on State Budget, Law on Corporate Income Tax, and Law on Excise Tax; submit them to the Government to ensure timely submission to the National Assembly for review and approval at the 9th session of the 15th National Assembly to thoroughly address current shortcomings and challenges.

- In 2025, assess the implementation of the Law on providing assistance for small and medium-sized enterprises, propose, report to the Government for timely submission to the National Assembly to include in the law/ordinance formulation program on amending the Law on providing assistance for small and medium-sized enterprises in the direction of substantially innovating support policies, procedures, etc.

- Research and propose a legal framework to manage and promote a safe and efficient development of digital assets, encrypted assets, and digital currencies, and submit it to the Government in March 2025.

c) The Ministry of Science and Technology shall:

Urgently complete the draft Law on Science, Technology, and Innovation, the Law amending law on Standards and Technical Regulations; submit them to the Government for timely submission to the National Assembly for review and approval at the 9th session of the 15th National Assembly as prescribed.

d) The Ministry of Industry and Trade shall:

Research, develop, and send proposals to the Government for submission to the National Assembly to include in the 2025 Law/Ordinance formulation program of the National Assembly on the draft Law on key industrial product manufacturing to promote the development of key industrial sectors in line with the context of science, technology, and innovation; send a report to the Government within the 2nd quarter of 2025.

dd) The Ministry of Agriculture and Environment shall:

- Urgently take charge and cooperate with the Ministry of Foreign Affairs in negotiating an extension with the United States to complete the dossier and achieve equivalence assessment, while ensuring full compliance with the Marine Mammal Protection Act of the United States (MMPA) to avoid affecting fishing, aquaculture production, processing and export of aquatic products to the United States; report to the Prime Minister by April 15, 2025.

- Proactively review and complete the legal framework related to the management of fishing, aquaculture production, and aquatic product export suitable for products exported to Europe; implement diplomatic solutions and support fishermen in legal exploitation to decisively address warnings of IUU fishing for Vietnamese aquatic products.

- Research and develop a strategy for developing the by-product industry to increase the value of agricultural products, establish a new raw material industry, and create new competitive advantages for the agricultural economy; report them to the Prime Minister within the 2nd quarter of 2025.

2. Regarding planning and infrastructure development to enable the growth of SMEs

a) Ministries, central and local authorities:

- Focus on effectively implementing existing planning and its implementation plan; develop economic corridors, industrial belts - urban - service rings linked to new centers (Long Thanh airport, international financial hub); actively propose solutions to develop new industries (semiconductors, chips...) to lead and support the operations of SMEs.

- Strive to achieve a disbursement rate of public investment capital in 2025 of over 95% of the assigned plan, with particular priority given to important, urgent projects, strategic infrastructure projects, and regional and national connectivity projects. Improve the quality of investment preparation for projects in the 2026 - 2030 period, especially strategic infrastructure projects, the North-South high-speed railway, international connecting railway lines, urban railways, international transit seaports...; particularly promote investments of business groups, state-owned corporations, and large enterprises to create motivation to lead, and encourage investments of SMEs.

b) The Ministry of Finance shall

Urgently complete proposals for building the Law on Industrial parks, Law on economic zone, with research and proposals for new, special, and outstanding mechanisms or policies on investment incentives for industrial parks, economic zones, free trade zones, and special economic zones to develop specialized industrial parks and develop SMEs; new economic zone models to attract investment for the development of key industries and sectors in line with the country's socio-economic development; and submit them to the Government by August 2025.

c) The Ministry of Science and Technology shall:

Promote the 5G commercialization, research on 6G technology, develop satellite communications, and upgrade the national telecommunications infrastructure. Continue to invest in and develop high-speed fixed broadband infrastructure; research and propose mechanisms and priority policies to promote the establishment of digital technology enterprises within SMEs.

3. Regarding support for SMEs to access finance and credit

a) The Ministry of Finance shall:

- Implement effective solutions to intensify lending activities of the Small and Medium Enterprise Development Fund (SMEDF) to create a channel for mobilizing capital at reasonable costs for SMEs.

- Thoroughly simplify procedures and documentation for assistance regarding tax incentives, VAT refunds for enterprises; study the application of post-inspection methods to ensure that SMEs are not affected in terms of cash flow and business operations.

b) The State Bank of Vietnam shall:

- Resolutely implement credit programs and policies for enterprises as directed by the Government and the Prime Minister; prioritize interest rate stability; proactively and flexibly manage monetary policies that are appropriate and effective, building trust for enterprises; cooperate with relevant ministries and central and local authorities to timely resolve issues during implementation.

- Focus credit on production and business fields, priority sectors, and traditional economic growth drivers (consumption, investment, export) and new growth drivers (digital transformation, green transformation, circular economy, sharing economy, science, technology, and innovation, etc.); closely control credit in areas with potential risks to ensure safe, effective credit operations.

- Direct credit institutions to continue reducing operating costs, intensifying the application of information technology, simplifying administrative procedures, restructuring and further improving the efficiency of operations, increasing social responsibility, and be ready to share part of the profits to reduce interest rates for loans to support SMEs in accessing bank credit; promote mortgage-based lending using off-plan property in compliance with the law to diversify and facilitate funding sources for the production and business of SMEs.

4. Regarding support for SMEs to improve the quality of human resources, digital transformation, increase labor productivity, build Vietnamese business brands to expand markets, and deepen involvement in value chains

a) Ministries, central and local authorities shall:

- Effectively carry out activities to support the training of high-quality human resources for SMEs, focus on improving the skills and knowledge of employees in enterprises; provide in-depth corporate governance training; offer training based on the practical needs of enterprises, and provide online training for enterprises.

- Promote the implementation of programs and solutions to support SMEs in innovation, digital transformation, green transformation, and the development of new economic models (circular economy, creative economy, sharing economy), emerging sectors (artificial intelligence, big data, cloud computing, new energy, biotechnology, cultural industry, entertainment industry, etc.).

- Support upgrading small and medium enterprises to meet standards of association with large enterprises, chain-leading enterprises, and foreign-invested enterprises.

- Increase support for the development of cross-border e-commerce activities for enterprises; develop logistics services, expand air and sea transport; intensify international integration in services, and sign digital economic agreements to encourage enterprises to expand export markets.

b) The Ministry of Finance shall:

Take charge in implementing the Law on providing assistance for small and medium-sized enterprises, ensuring that state budget capital to support SMEs is used in a practical and effective manner.

c) The Ministry of Industry and Trade shall:

- Research and formulate the Law on e-commerce to improve the effectiveness and efficiency of state management in e-commerce; enable sustainable e-commerce development and help SMEs leverage modern platforms to expand markets for their products and goods.

- Promote connections between domestic manufacturers and modern distribution channels to expand the consumption of enterprises' products nationwide; develop smart logistics systems, combining modern warehouses, artificial intelligence (AI), and big data technology to optimize transportation and reduce logistics costs for enterprises.

- Regularly provide information and support enterprises to meet export market standards; update and assess Vietnam's export situation to provide early warning to SMEs about products that are likely to be investigated and subject to anti-circumvention measures by foreign countries; support SMEs in anti-dumping lawsuits.

- Continue the implementation of the National Brand Program, support SMEs in building and developing strong brands, promoting foreign trade, and associating the image of Vietnam with values such as “Chất lượng - Đổi mới, Sáng tạo - Năng lực tiên phong”("Quality - Innovation, Creativity – Pioneering”).

- Complete the ecosystem Scheme utilizing Free Trade Agreements (FTAs) to support SMEs in effectively seizing opportunities from the 17 signed FTAs; expand and diversify export markets and alternative supply sources; intensify the exploration of new potential markets (Middle East, Latin America, Africa, Central Asia, Egypt, Halal...); and report them to the Prime Minister in June 2025.

d) The Ministry of Justice shall:

- Intensify innovation in legal support for SMEs, enterprises in remote, disadvantaged/extremely disadvantaged areas, enterprises led by women, and enterprises with significant social impact.

- Effectively implement the Scheme for "Application of digital technology in receiving and processing feedback and proposals on legislative documents" approved in Decision No. 244/QD-TTg dated February 5, 2025, by the Prime Minister; focus on building and coordinating with ministries and central and local authorities in operating the Information System for receiving and processing feedback and proposals on legislative documents to timely detect, study, propose amendments, improve policies and regulations, and remove barriers and obstacles regarding legislation to ensure the objective of creating and promoting development.

dd) The Ministry of Agriculture and Environment shall:

Continue supporting enterprises, especially SMEs, in implementing pilot, special mechanisms, policies, new regulations, breakthroughs, and a "green channel" mechanism for agricultural projects applying high technology; support transfer, application of technology in production and processing agricultural products to improve productivity, improve product quality and value, expand market opportunities, and promote exports.

e) The Ministry of Education and Training shall:

- Focus on synchronously and effectively implementing solutions and policies to encourage and promote the training of high-quality human resources for priority and emerging sectors. Review, assess, and basically innovate training programs in the direction of encouraging the integration of content on entrepreneurship and start-up spirit, ensuring that it is suitable for practical conditions and meets business requirements.

- Improve the content of higher education and vocational education in a practical direction, closely following the needs of enterprises and providing training by demand of the enterprises. Promote the establishment of entrepreneurship center and innovation in higher education institutions to promote the commercialization of ideas, research projects in education and training institutions.

5. Further promote the role of the Vietnam Association of Small and Medium-sized Enterprises and Business associations and Trade associations.

- The Vietnam Association of Small and Medium-sized Enterprises and Business associations and Trade associations shall actively and effectively promote their role as community business connectors; represent member enterprises in providing feedback, formulating and criticizing policies; independently monitor and assess the process of lawmaking and law enforcement, as well as state development programs, plans, and projects related to SMEs; and represent and protect the interests of members in disputes.

- Intensify activities and improve the quality of support for the development of SMEs; develop a team of entrepreneurs; pioneer in promoting the development of Vietnamese business culture; strengthen connections and improve international integration; intensify activities to connect and support the development of business associations and their members; and build a united and strong business community for a prosperous Vietnam.

III. IMPLEMENTATION

1. Ministers, Heads of ministerial agencies, Government agencies, and Presidents of People's Committees of provinces and centrally affiliated cities shall proactively organize the thorough study and formulate plans to promptly and effectively implement and direct agencies, organizations, and units under their management to strictly implement the tasks stated in this Directive; take full responsibility before the Prime Minister for the implementation results of ministries and central and local authorities.

2. Assign Deputy Prime Ministers by their respective fields to direct ministries and central and local authorities to effectively implement the tasks and solutions outlined in this Directive; promptly address emerging issues within their jurisdiction.

3. The Government Office within their jurisdiction shall monitor and urge ministries and central and local authorities to carry out the tasks as stipulated in this Directive./.