During the first conference of full-time 16th National Assembly (NA) deputies on September 28, lawmakers deliberated on a package of draft laws, including the Law on the Development of Small and Medium Enterprises, the Law on Electronic Identification and Authentication, the Law on Data Security, and the Law Amending and Supplementing Several Articles of the Law on Securities.
Regarding the draft amendment of the Law on the Development of Small and Medium Enterprises, deputies noted that the draft legislation reflects positive advancements designed to expand capital access, facilitate market entry, foster innovation, promote digital and green transitions, and support household businesses transitioning into formal enterprises.
On tax and accounting provisions, the bill stipulates that micro and small enterprises will be eligible for a corporate income tax (CIT) rate lower than the standard rate. Concurrently, small and medium enterprises (SMEs) would receive a full CIT exemption for three years starting from the date of their initial business registration certificate.
Deputy Nguyen Van Huy from the Hung Yen Province NA Delegation concurred with leveraging tax policy as a tool to incentivize entrepreneurship, private investment, and enterprise expansion. However, he urged thorough deliberation regarding the blanket three-year tax exemption for SMEs.
Mr. Huy argued that applying such a wide scope to all newly registered SMEs could impose a substantial burden on the State budget without necessarily aligning with the genuine necessity of specific corporate groups.
Consequently, he proposed adopting a tiered tax incentive structure. Under this approach, enhanced, longer-term, or conditional incentives would target enterprises operating in prioritized sectors, engaging in innovation, digital transformation, green manufacturing, global value chain integration, large-scale job creation, or those demonstrating high potential for economic contributions.
To maximize policy effectiveness, Deputy Tran Van Lam from the Bac Ninh City NA Delegation suggested that the tax-free window should commence in the first year an enterprise generates taxable income rather than the year of its initial registration. In other words, the three-year exemption period should take effect only once an enterprise actually incurs tax liabilities.
Refining the securities market institutional framework
Deliberating on the draft Law Amending and Supplementing Several Articles of the Law on Securities, deputies focused on regulatory testing mechanisms (sandboxes), market operating structures, and service quality standards among market intermediaries.
Addressing the controlled testing mechanism (regulatory sandbox) in the securities sector, Deputy Nguyen Minh Duc from the Ho Chi Minh City NA Delegation recommended a meticulous review of each provision against the broader synchronization of technology, cybersecurity, and data protection legislation.
Regarding financial products and services, Mr. Duc stated that the law should clearly define emerging derivative and intermediary models, including fractional share trading, automated robo-advisory services, and various forms of financial tokenization.
On market structure, the draft should clearly specify decentralized or semi-centralized securities market models to prevent ambiguities during practical enforcement, according to the Deputy from the Ho Chi Minh City NA Delegation.
Commenting on the organizational model of the Stock Exchange, Deputy Hoang Van Tuyen from the Hai Phong City NA Delegation backed the draft’s flexible approach of not rigidly mandating a parent-subsidiary corporate structure, thereby providing leeway to restructure the Stock Exchange in response to practical market developments.
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