Vietnam Association of Small and Medium Enterprises: Confidential Support of Businesses

 

Implementing the party and state’s policies on the development of multi-element economy and international integration, over the past years the number of Vietnamese small and medium enterprises (SMEs) have increased rapidly in both rural and urban areas, operating in almost all of fields and filling the gap and shortage which big firms have not yet covered. The SMEs have been exploiting and mobilizing social sources at localities, creating jobs for a majority of laborers and contributing to set up a sound competition market. 

 

So far, Vietnam has had over 500,000 small and medium enterprises, accounting for more than 97 per cent of total businesses, using over 30 per cent of total investments, employing over 50 per cent of laborers and producing over 40 per cent of consumer goods and exports. The SMEs contribute 47 per cent GDP and nearly 40 per cent of the state budget, playing an important role in the country’s socio-economic development.  

 

Since the establishment in 2005 with only 300 enterprises and two provincial cooperative liaisons, the association has so far had over 20,000 members and set up operation network in 41 provinces, cities, five representative offices abroad, one official organ and one research institute. The association has targeted to raise the number of members to 100,000 in next five years.  

 

During the past term, the association actively joined hands with the ministries and agencies as well as partners to build support programs for enterprises to raise the quality of products and services; develop trademark; improve competitive capability and push up international integration. The association also paid attention to the emulation movements, commendation and reward, honor of businessmen and firms who gained excellent achievements in production, business and activities for the community. Over the past five years, the VINASME has completed significantly the role of a representative organization, protected legitimate benefits of members, reviewed and recounted timely enterprises’ difficulties and challenges in capital sources, trade promotion, policies and laws to authorities.    

 

In a bid of expanding foreign affair relations and international cooperation, the VINASEM has completed dossier to propose the participation into the World Association of Small and Medium Enterprises; built and developed the relationship with foreign organizations to take advantage of opportunities for Vietnamese firms in the aspects of trade promotion, technological transfer, training and attraction of investment capitals.

 

In addition, over the past years, the association’s units have actively called on members to mobilize fund for the poor; the social welfare fund, supported flood victims in the central region VND12.6 billion, 140 tons of rice, 3,600 boxes of instant noodle and 12,400 clothes. Through practical and effective activities, the VINASME has gradually increased its role and status and been appreciated by the part, state, the Vietnam fatherland front and member enterprises.

 

PhD. Cao Sy Kiem, newly-accredited chairman of the VINASME in 2011-2015 term, said the upcoming time, the association will aim at specific targets as follows: Increasing the consent and actively contributing opinions, proposals to policies on the socio-economic development; supporting further member enterprises to get access to the market information, credit sources, trade promotion and training of human forces. Particularly, the association will continue expanding the operation wholly 63 provinces and cities, building and training the team of staff and contributing the sustainable development of enterprises in both depth and width.    

Mr. Tran Hoang Giang - Chairman of Quang Binh province’s association of small and medium enterprises: During the two years of operation, the Quang Binh association of small and medium enterprises has significantly contributed to the province’s socio-economic development and supported the community of local enterprises. The association’s status has been improved obviously. The association has so far had over 350 members and planned to raise the number after the second national congress.  

In order to help enterprises develop and stabilize the production and business, ministries, agencies and provincial people’s committee should actively implement Decree 56, Resolution 22 of the government on supporting SMEs in finance, land for production and business, improvement of technologies, promotion of markets, training of human forces and development funds of SMEs.

 

Mr. Pham Hong Thai - Chairman of Nghe An province’s association of small and medium enterprises: To develop the association, it is necessary to build and reinforce the association’s internal force. Thus, over the past years, the Nghe An association of small and medium enterprises has strived to expand local units, attracting over 600 members. Besides, the association has received great support and attention of governments at all levels, the active cooperation of provincial agencies. The association appreciated propaganda of policies and advertisement of enterprises in order to help them timely catch up with market information and the party and state’s policies and laws. Annually, the association joined hands with people’s committees of localities to propose the provincial people’s committee to hold direct dialogues with enterprises to solve difficulties; organize for enterprises to survey and study markets aboard. The association has really become confidential support for local firms. 

 

Mr. Tran Quoc Khoa - chairman of Thai Binh province’s association of small and medium enterprises: Based on experiences in consulting and supporting the community of local enterprises over the past years we saw firstly the need of sound awareness from authorities to enterprises on the consultancy work is a right policy of the party and state. Secondly, on the basis of surveys and the real situation of each locality, the association will assess what enterprises are in need as well as the association’s ability to support firms. Thirdly, the association needs to actively join hands with authorities and other organizations in consulting and supporting enterprises. The association must be a bridge linking the community of enterprises and the government, so that the consultancy and support for enterprise can take efficiency.