​Vietnam's finance minister throws support behind tax reductions for all SMEs

​Vietnam's finance minister throws support behind tax reductions for all SMEs

Vietnamese Minister of Finance Nguyen Van Thang has expressed support for a proposal to reduce corporate income taxes for all small- and medium-sized enterprises (SMEs), saying the matter will be reported to the government for consideration.

A representative of a Vietnamese firm presents proposals at a meeting with officials and the prime minister on efforts to help SMEs to thrive. Photo: Vietnam Government Portal

Speaking at a working conference with SMEs on Thursday, chaired by Prime Minister Pham Minh Chinh, Thang said the proposed tax cuts align with the government’s broader effort to reduce fees and charges to support businesses.

He noted that the report would also include recommendations for administrative reforms and a more transparent business climate to foster SME growth.

Nguyen Van Than, chairman of the Vietnam Association of Small and Medium Enterprises, said the tax reduction would allow businesses to maintain a steady revenue flow and reinvest in operations.

At the conference, PM Chinh emphasized that most Vietnamese businesses are SMEs, underscoring their importance to the national economy.

He said the government is drafting a new resolution on private enterprise development to be presented to the Politburo and the Central Committee of the Communist Party of Vietnam. He called on participants to provide constructive input on current challenges and obstacles.

As such, apart from the proposal on tax reductions, several representatives put forward suggestions at the meeting.

Dang Dinh Chinh, chairman of SMP Holdings JSC -- a supplier to 70 foreign-invested enterprises and a manufacturer and assembler of high-end electronic components for Samsung -- urged stronger government-business cooperation.

He called on the government to support negotiations with foreign-invested firms to create more opportunities for Vietnamese suppliers and to offer incentives to local companies.

Dang Hong Anh, chairman of the Vietnam Young Entrepreneurs Association, proposed that commercial banks allocate between VND5 trillion (US$196 million) and VND20 trillion ($782 million) in preferential loans to SMEs with clear credit conditions.

He also suggested extending corporate tax payment deadlines by six to 12 months, simplifying administrative procedures, and reducing processing times by 30-50 percent.

Additionally, he hinted at opening training programs to improve workforce skills and promote digital transformation.

Do Quang Hien, chairman of T&T Group, highlighted SMEs’ struggles in securing capital.

While many have strong business ideas, he said, they often lack the ability to develop comprehensive business plans, leading to high risks.

He suggested that the State Bank of Vietnam introduce risk management mechanisms for SMEs, while also enhancing international trade and investment connections.

Phan Dang Tuat, head of the Vietnam Association of Supporting Industries, stressed the need for stronger links between local enterprises and foreign firms.

He proposed the establishment of innovation centers to help SMEs test machinery and equipment before investing, as well as industrial product testing centers to support domestic manufacturers.

Similarly, Nguyen Kim Hung, chairman of Kim Nam Group, urged the government to introduce pilot programs (Sandbox mechanisms) to encourage SMEs to develop breakthrough innovations.

He also called on the Ministry of Finance to create guidelines for identifying and valuing digital assets, which would help businesses access bank financing.

Tuoi Tre News