DECISION

APPROVING THE SCHEME FOR INCREASING CAPACITY OF UNITS SUPPORTING THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES

THE PRIME MINISTER

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Government's Decree No. 56/2009/ND-CP dated June 30^th, 2009 on supporting the development of medium and small enterprises

Pursuant to the Government's Resolution No. 22/NQ-CP dated May 5, 2010 on the implementation of the Government's Decree No. 56/2009/ND-CP dated June 30th 2009 on supporting the development of medium and small enterprises

Pursuant to the Prime Minister’s Decision No. 1231/QD-TTg dated September 7, 2012 approving the Plan for development of medium and small enterprises in the period of 2011-2015;

At the request of the Minister of Planning and Investment,

DECIDES:

Article 1. To approve the Scheme for increasing the capacity of units supporting small and medium-sized enterprises (SMEs) (hereinafter referred to as the Scheme) including the following :

1. Objectives

Consolidating and increasing the capacity of units supporting SMEs at central and local levels in order to promote the development of SMEs becoming major driving force for stable growth of the country.

2. Viewpoints

a) Consolidating and increasing the capacity of existing units supporting SMEs of the Ministry of Planning and Investment, the Department of Planning and Investment under a reasonable routemap.

b) In the first period, focusing on consolidating units supporting SMEs in central level and some localities that have many SMEs which are under operation and need great support.

c) The model of units supporting SMEs in localities is organized based on the support needs of SMEs in the area, possibilities and realistic conditions of each locality.

d) In the process of implementation, not increasing the number of organizations and general staff whose salary is paid by the state budget of the Ministry of Planning and Investment and central-affiliated cities and provinces. Arranging officers and public servants in the total staff assigned the task of supporting SMEs when necessary.

dd) Funding for implementation of the Scheme ensures the principle of thrift, efficiency and consistence with budgetary conditions. Gradual socializing and mobilizing resources for supporting SMEs.

3. Specific tasks

a) Complete the legal framework regulating the functions, tasks, and organizational structure of the units supporting SMEs from the central to local levels.

b) On the basis of not increasing the total staff, arrange adequate staffing for the units supporting SMEs. Increase cadres based on the ability to balance revenues and expenditures on activities of the unit and the support demand of SMEs in the area. Improve the quality of cadres taking charge of supporting SMEs.

c) Invest in facilities for the unit supporting SMEs at central level to implement the activities to support SMEs, form links with industry in the field having competitive advantage, create high added value and support localities that meet difficulty. Focus on upgrading facilities for units supporting SMEs in central-affiliated cities and provinces that have many SMEs which are under operation and need great support.

d) Strengthen the coordination in supporting SMEs among Ministries, departments and between the central and local levels in order to improve the efficiency of use of resources to support SMEs.

4. Solutions

a) Solutions for innovating and strengthening the organizational structure of units supporting SMEs

In 2015:

- The Ministry of Planning and Investment shall reorganize and improve the operational efficiency of units supporting SMEs at central level with main tasks as follows: Be the focal unit, aggregate the implementation of policies, programs of supporting the development SMEs; (ii) Connect activities of supporting SMEs of the Ministries, departments, localities and enterprise associations; (iii) implement a number of policies and programs of supporting the development of SMEs: Providing information, consultancy services of business development, enterprise connection, training business management, production management, technical support to business incubation, developing links with industry in fields that have competitive advantage, creating high added value; (iv) Train to improve the professional knowledge of supporting SMEs.

- The Ministry of Planning and Investment, Ministry of Home Affairs shall study and amend Joint Circular No. 05/2009/TTLT-BKHDT-BNV dated August 5, 2009 of the Ministry of Planning and Investment and Ministry of Home Affairs, which specifies the functions and tasks of the Department of Planning and Investment which is the focus unit in supporting the development of SMEs in the area: (i) Be the focus unit in formulating policies, programs of supporting SMEs in the localities; (ii) monitor and aggregate the implementation of the policies, programs of supporting the development of SMEs in the area; (iii) implement a number of policies and programs of supporting the development of SMEs such as: Providing business information, consulting services of business development, investment expansion, the business connection, training human resources, business incubation.

- Based on the support need of SMEs, the ability and the realistic conditions of the localities, People's Committees of central-affiliated cities and provinces shall set up the project on strengthening units supporting SMEs. For localities that have over 3,000 SMEs that are under operation, innovate and consolidate units supporting SMEs as defined in paragraph 2 of Article 18 of the Government’s Decree No.56 / 2009 / ND-CP dated June 30, 2009 on supporting the development of SMEs, select the form of public service provider. For localities that have less than 3,000 SMEs that are under operation, assign the task of supporting SMEs to a unit of the Department of Planning and Investment of the locality.

b) Solutions for human resource

In 2015:

- Based on the functions, assigned tasks, units supporting SMEs (or governing body) shall set up the project on job placement and request the competent authorities for approval

- On the basis of the total staff and the project of job placement, the competent authorities arrange sufficient personnel taking in charge of supporting SMEs.

- The Ministry of Planning and Investment shall take charge and cooperate with Ministries, sectors, localities and enterprise associations to provide training courses to improve the professional knowledge and skills of supporting SMEs; conduct pilot implementation of consulting the supporting SMEs in the enterprises.

In the period of 2016-2020:

- Based on the demand and the ability to balance revenues, units supporting SMEs formulate the plan for increasing the number of officials and staff every year, request the competent authority for approval. In particular, the number of officials whose salary is paid by the state budget shall not increase, the salary of remaining officials shall be paid based on the balance of revenues.

- The Ministry of Planning and Investment shall take charge and cooperate with Ministries, sectors, localities, and enterprise associations to provide training courses to improve the professional knowledge and skills of supporting SMEs; develop officials, consultants to support SMEs.

c) Solutions for upgrading facilities for units supporting SMEs

In 2015:

- the Ministry of Planning and Investment shall set up project of investing and upgrading facilities for units supporting SMEs at the central level including: (I) training institutions of human resources for SMEs, professional knowledge of supporting SMEs; (ii) information system connecting business for SMEs; (iii) facilities providing technical support services to business incubation and development of links with industry in fields that have competitive advantage, creating high added value.

- For localities that have over 3,000 SMEs that are under operation and have urgent support need, the People's Committees of central-affiliated cities and provinces shall base on the budget balancing capability and other legal resources to set up the project of investment and upgrading of facilities for units supporting SMEs.

In the period of 2016-2020:

- Implementing projects of investment and upgrading of facilities for units supporting SMEs.

- Based on the balance ability of revenues and the ability to mobilize other lawful sources of funding, units supporting SMEs at localities upgrade facilities to meet requirements for supporting SMEs in the area.

d) Solutions for strengthen the coordination among the Ministries, departments, localities, and enterprise associations in supporting SMEs.

- Enhancing the advisory role of the SMEs Encouragement Council for the Prime Minister in directing and coordinating activities of supporting SMEs in a comprehensive, focusing direction in accordance with the Plan for development of SMEs in 5 years; increasing the role of enterprise associations in the Council.

- The Ministry of Planning and Investment shall take charge and cooperate with relevant agencies to widely disseminate information about policies and programs of supporting SMEs of the State.

5. Funding for implementation of the Scheme shall be provided by the State budget and other mobilized funding. The provision of funding for implementation of the Scheme from the state budget shall comply with current fiscal decentralization.

6. The plan for implementation of the Scheme shall be detailed in the attached Appendix.

Article 2. Implementation

1. The Ministry of Planning and Investment

a) Monitor, aggregate, and report to the Government on the implementation of the Scheme.

b) Take charge and cooperate with the Ministry of Finance to balance and distribute annual investment capital from the central budget, conduct international cooperation to implement investment projects in facilities for units supporting SMEs at central and local level; request the Prime Minister the proposal of using the budget in "Loan from program of development of SMEs” of the second time - Sub Program II financed by the Asian Development Bank (ADB).

2. The Ministry of Finance shall take charge and cooperate with the Ministry of Planning and Investment to balance and distribute budget for regular expenditure to implement activities of supporting SMEs.

3. Ministry of Home Affairs shall take charge and cooperate with the Ministry of Planning and Investment, provincial People’s Committees to provide guidance on personnel organization to endure the manpower sources for units supporting the development of SMEs.

4. Ministries, departments shall strengthen the cooperation with units supporting SMEs in implementing policies and programs of supporting SMEs under the sector that they manage.

5. People’s Committee of central-affiliated cities and provinces

a) Support the development of SMEs in the area. Consolidate units supporting the development of SMES to carry out tasks mentioned above.

b) Localities wishing to innovate and reorganize units supporting SMEs shall study and set up the project and report to the Ministry of Planning and Investment for assessment before implementation.

c) Distribute funding from local budgets to ensure the operation of units supporting the development of SMEs at local level.

d) Annually report on the results of implementation of the Scheme to the Ministry of Planning and Investment for aggregate and reporting to the Prime Minister.

6. Organizations, enterprise associations shall initiatively improve their capability, increase the cooperation with units supporting SMEs.

Article 3. Implementing clause

1. This decision takes effect from the date of signing.

2. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Presidents of People’s Committees of central-affiliated cities and provinces shall be responsible for the implementation of this Decision.

3. The Ministry of Planning and Investment shall provide guidance and urge localities to implement the Scheme on schedule and under the current regulations. /.

APPENDIX

PLAN FOR IMPLEMENTATION OF THE SCHEME FOR INCREASING CAPABILITY OF UNITS TAKING CHARGE OF SUPPORTING THE DEVELOPMENT OF AMES (Enclosed herewith the Prime Minister’s Decision No. 265 / QD-TTg dated March 2, 2015)