Prime Minister Pham Minh Chinh (2nd from left) at the Government conference with SMEs, Ha Noi, February 27, 2025 - Photo: VGP/Nhat Bac

Pham highlighted the role play by SMEs, calling upon them to make more contributions to socio-economic progress.

Specifically, he called on SMEs to contribute to the implementation of the Party and State's policies and orientations, particularly in innovation, technology application, and promotion of both traditional and new growth drivers including the digital economy, green economy, circular economy, knowledge economy, and climate change response.

Pham hoped that businesses will actively join institutional development, effectively optimize the country's potential and resources, strengthen international cooperation and technology transfer, diversify markets, products, and supply chains, integrate more deeply into global supply networks, and enhance social welfare efforts, including poverty reduction and social housing development.

He tasked ministries and agencies to support SMEs by improving infrastructure, promoting the signing of free trade and investment protection agreements, and expanding international markets, including the Middle East, Africa, Central Asia, and South America.

Representatives of SMEs took the occasion to seek Government's support to participate in large-scale national projects, provide tax reductions for SMEs based on their level of localisation in production, grant favorable policies in favor of startup development, especially among students and SME participation in supply chains of large corporations and foreign direct investment (FDI) enterprises.

As of December 31, 2024, Viet Nam was home to over 940,000 active businesses in which SMEs accounted nearly 98 percent, according to the Ministry of Planning and Investment.

SMEs create 5.5 million workers and hold a combined capital of VND16.6 quadrillion (US$650.08 billion), making up less than 30 percent of the total business capital in the Southeast Asian country./.