Enabling small and medium enterprises

(VOVworld) – Vietnam’ 400,000 small and medium-sized enterprises (SMEs) account for 97% of the total. They contribute 40% of the national GDP and employ half of Vietnam’s workforce. 

Enabling small and medium enterprises  - ảnh 1
Prime Minister Nguyen Xuan Phuc addressed he 2nd National Congress of the Vietnam SME Association in Hanoi on December 3, 2016

Prime Minister Nguyen Xuan Phuc has pledged the government’s efforts to develop the Vietnamese business community. At the 2nd National Congress of the Vietnam SME Association in Hanoi on Saturday, Mr. Phuc said the Government is working to building a able and incorruptible cabinet who match their words with actions that serve people and businesses: “The government‘s key responsibility is to reform institutions, create policies, and implement strategies and plans. It should ensure publicity, transparency, and equality, creating a level paying field for small and medium-sized enterprises to succeed.”

The Government has adopted incentives for SMEs, including supporting credit access, disseminating information on export markets, and maximizing opportunities for negotiating funded projects. Other measures include improving business environment, fostering start-ups, and helping enterprises until 2020. The government-drafted bill on SME support, which was just submitted to the National Assembly for approval, has been well recieved by the business community. Ho Sy Hung, Director of the Business Development Department of the Ministry of Planning and Investment, said: “The bill spells out that government support should have clear targets. State agencies should build their own plans and programs of action to help SMEs. They also have opportunities to participate in supplying services to enterprises within their functions and missions.”

Vietnam is carrying out institutional reforms and planning its economy to achieve the goal of having 1 million competitive enterprises by 2020.