The Ministry of Finance is currently seeking comments on the Draft Law on Support for Small and Medium-sized Enterprises (amended), which contains a number of notable new proposals.

Based on feedback collected from the business community, particularly enterprises operating in manufacturing, processing, fabrication and supporting industries, the Vietnam Chamber of Commerce and Industry (VCCI) noted that the draft dated June 1, 2026 has made several important advances.

According to VCCI, the draft institutionalizes the principle of output-based budget allocation and support through voucher mechanisms. In addition, it allows credit provision based on data, cash flows, value chains, intangible assets and future-formed assets; introduces a guidance-first, sanction-later mechanism for businesses converted from household businesses; and grants additional evaluation points to contractors that engage small and medium-sized enterprises as subcontractors.

However, VCCI believes that a number of provisions still require further refinement to ensure that the policies are practical and effective.

Regarding enterprise classification criteria by sector under Article 4, VCCI noted that applying the dual criteria of no more than 300 employees and annual revenue not exceeding VND 400 billion across all sectors does not adequately reflect the characteristics of material-intensive industries such as electronics, where raw materials account for up to 85–90% of production costs.

VCCI therefore proposed raising the revenue threshold to VND 1 trillion for certain specific industries, while introducing a three-year transitional mechanism for enterprises that have only recently exceeded the support eligibility threshold.

With respect to corporate income tax incentives under Article 9, VCCI recommended extending preferential tax rates to medium-sized enterprises operating in manufacturing and supporting industries. It also suggested introducing incentives for expansion investments and investments in new machinery and technologies, applicable to both existing and newly established enterprises.

Regarding access to credit and the valuation of intangible collateral under Article 8, VCCI proposed that the Government issue a valuation framework for intangible assets, intellectual property rights and purchase orders; shorten appraisal periods; and stipulate an interest rate subsidy of at least 2% per year to ensure fairness with green projects supported under Article 21.

For policies supporting production premises under Article 10, VCCI recommended applying direct deductions from land rental fees instead of reimbursement through infrastructure developers. It proposed increasing the land rental reduction rate to 30% for a period of seven years and expanding eligibility to enterprises leasing land directly as well as supporting-industry enterprises already in operation.

Regarding research and development (R&D) activities under Article 11, VCCI suggested broadening the scope of deductible expenses and simplifying procedures related to the Science and Technology Development Fund in line with Resolution No. 57-NQ/TW.

For digital transformation, VCCI proposed setting the support level at no less than 50% of investment costs, together with a specific cap; adding ERP, MES, AI and IoT systems to the list of eligible support items; and allowing accelerated depreciation for software investments.

With regard to green transformation, ESG implementation and adaptation to carbon-related trade barriers under Article 21, VCCI proposed increasing interest rate support to 3% per year and expanding eligibility to conventional manufacturing enterprises implementing green projects. It also recommended covering at least 50% of certification and greenhouse gas inventory costs; adding support for compliance with the European Union’s Carbon Border Adjustment Mechanism (CBAM); and allowing 150% of ESG consulting and certification expenses to be treated as deductible costs for corporate income tax purposes.

To simplify administrative procedures, VCCI proposed extending simplified accounting regimes to small enterprises and introducing a “declare once” principle with integrated data sharing among state agencies. It further recommended that enterprises only be excluded from support policies after a legally effective court judgment has been issued, thereby upholding the presumption of innocence and avoiding the criminalization of economic and civil relations in accordance with Resolution No. 68-NQ/TW.

Another issue strongly emphasized by VCCI is the need to elevate the “guidance first, sanctions later” approach into a general principle applicable to all small and medium-sized enterprises, rather than limiting it to businesses converted from household businesses.

Regarding public procurement under Article 12, VCCI proposed introducing monitoring, disclosure and enforcement mechanisms to ensure the effective implementation of the requirement that at least 20% of public procurement value be allocated to small and medium-sized enterprises. Priority should also be given to supporting-industry products and domestically manufactured goods.

In addition, VCCI recommended introducing provisions to support enterprises in complying with fire prevention and firefighting requirements; establishing funding mechanisms for technology transfer within industrial clusters; adding a separate chapter containing amendments to relevant sector-specific laws; developing regulatory sandbox mechanisms and liability exemptions for objective risks arising from innovation activities; and further clarifying the scope of voucher-based support.

VCCI also urged the drafting committee to specify support rates, ceilings and implementation periods directly in the Law or its guiding documents, minimizing principle-based provisions that are difficult to implement in practice. At the same time, support policies should be tailored to the characteristics of individual sectors in order to improve effectiveness and accessibility for businesses.