Vietnam should provide more support for small- and medium-sizedenterprises (SMEs) to help them improve capacity and competitiveness,said Alain Chevalier, chief advisor for a SME assistance programme.
At a recent seminar on Vietnam-France trade and investment promotionheld by the Ministry of Industry and Trade (MoIT), Chevalier praisedthe fine adjustment made by the Vietnamese Government in the scale ofState-owned enterprises (SoEs).
Further assistance to SMEsand a reduction in the number and scale of SoEs have demonstratedVietnam’s sound policies, he was quoted as saying by radio the Voice ofVietnam (VOV).
The advisor noted that Vietnamese people arevery intelligent and creative, with many initiatives for developing thehousehold economy and if they receive the right support, they candevelop SMEs effectively.
With enormous potential fordeveloping service and manufacturing sectors, SMEs can team up withlarge groups to engage in the support industry. They are also enjoyingfavourable conditions to enter such fields as information technology,tourism and finance, he said.
However, the advisor pointedout some hurdles facing SMEs, including limited access to financialsources which puts them in a difficult position to pay taxes, applyadvanced technology and sharpen competitive edge.
His viewwas shared by Hoang Gia Media Group General Director Hoang Hai Au, whosaid local businesses, especially SMEs, are suffering numerouschallenges due to weak liquidity, low purchasing power and largeinventories.
It’s difficult for Vietnamese businesses tocompete against foreign rivals and stand firm on home turf as they haveto pay high interest rates of bank loans. In addition, local firms arestruggling to protect their trademarks in the face of invasion byforeign companies, Au elaborated.
He said that in manycountries, including the US, SMEs are considered a great source for jobgeneration and GDP contribution, while giant groups create reputationand represent a country on the global market.
Vietnam’sEnterprise Law (revised) is expected to help SMEs iron out teethingproblems and operate more efficiently, he added.
The advisorsuggested Vietnam learn experience from developed countries in assistingSMEs in their fledgling period. The Government should assist SMEs whoare in need of technical assistance, zoning plans and developmentstrategy.
In Switzerland, SMEs are regarded as the backboneof economic growth, and the government is willing to help them withinvestment capital and technology, he said, citing Nestle as an example.
As a one-member firm previously, Nestle was then expanded, and soonbecame a globally renowned brand name. Thanks to its flexibility,creativeness and self-recovery ability, Nestle has generated huge jobopportunities and overcome difficulties and challenges caused by theworld’s economic downturn, the advisor noted.
He hailed SMEs’crucial role in boosting Vietnam’s economic growth, apart from valuableinflow of foreign direct investment (FDI).
Regarding businessconsultation, Au emphasised the need to provide stronger support forSMEs and introduced a programme called CEO SME 2014 that aims to helplocal businesses improve management and administration capacity.-VNA
At a recent seminar on Vietnam-France trade and investment promotionheld by the Ministry of Industry and Trade (MoIT), Chevalier praisedthe fine adjustment made by the Vietnamese Government in the scale ofState-owned enterprises (SoEs).
Further assistance to SMEsand a reduction in the number and scale of SoEs have demonstratedVietnam’s sound policies, he was quoted as saying by radio the Voice ofVietnam (VOV).
The advisor noted that Vietnamese people arevery intelligent and creative, with many initiatives for developing thehousehold economy and if they receive the right support, they candevelop SMEs effectively.
With enormous potential fordeveloping service and manufacturing sectors, SMEs can team up withlarge groups to engage in the support industry. They are also enjoyingfavourable conditions to enter such fields as information technology,tourism and finance, he said.
However, the advisor pointedout some hurdles facing SMEs, including limited access to financialsources which puts them in a difficult position to pay taxes, applyadvanced technology and sharpen competitive edge.
His viewwas shared by Hoang Gia Media Group General Director Hoang Hai Au, whosaid local businesses, especially SMEs, are suffering numerouschallenges due to weak liquidity, low purchasing power and largeinventories.
It’s difficult for Vietnamese businesses tocompete against foreign rivals and stand firm on home turf as they haveto pay high interest rates of bank loans. In addition, local firms arestruggling to protect their trademarks in the face of invasion byforeign companies, Au elaborated.
He said that in manycountries, including the US, SMEs are considered a great source for jobgeneration and GDP contribution, while giant groups create reputationand represent a country on the global market.
Vietnam’sEnterprise Law (revised) is expected to help SMEs iron out teethingproblems and operate more efficiently, he added.
The advisorsuggested Vietnam learn experience from developed countries in assistingSMEs in their fledgling period. The Government should assist SMEs whoare in need of technical assistance, zoning plans and developmentstrategy.
In Switzerland, SMEs are regarded as the backboneof economic growth, and the government is willing to help them withinvestment capital and technology, he said, citing Nestle as an example.
As a one-member firm previously, Nestle was then expanded, and soonbecame a globally renowned brand name. Thanks to its flexibility,creativeness and self-recovery ability, Nestle has generated huge jobopportunities and overcome difficulties and challenges caused by theworld’s economic downturn, the advisor noted.
He hailed SMEs’crucial role in boosting Vietnam’s economic growth, apart from valuableinflow of foreign direct investment (FDI).
Regarding businessconsultation, Au emphasised the need to provide stronger support forSMEs and introduced a programme called CEO SME 2014 that aims to helplocal businesses improve management and administration capacity.-VNA
