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Vietnam Today

Development plans designed for SMEs

Released at: 12:04, 07/01/2016

Development plans designed for SMEs

SMEs to benefit from specific planning aimed at their sustainable development.

by Minh Tien

A workshop on the development of small and medium-sized enterprises (SMEs) from 2016 to 2020 was held by the Ministry of Planning and Investment (MPI) on January 6.

The workshop heard that SMEs contribute 31 per cent of State budget revenue and 35 per cent of capital investment, while providing more than 5 million jobs and accounting for nearly half of the country’s annual economic growth.

On the last five years there had been programs in place supporting businesses in general but no specific development plans for SMEs. These support programs are disjointed, having been designed by different ministries and have therefore been able to provide convenient access to SMEs, Deputy Minister of Planning and Investment Dang Huy Dong told the gathering.

Mr. To Hoai Nam, Deputy Chairman of the Vietnam SME Association, emphasized that the process should be reassessed and redesigned based on the actual needs for the development of SMEs, in order to support them practically and efficiently.

“Ninety-nine per cent of SMEs do not aim at becoming giants,” he said. “They only need proper policies to develop sustainably.”

The SME sector still has various limitations to overcome, such as a lack of financial capacity, production space, information, and human resources. These factors lie behind competitive weaknesses, especially at a time when Vietnam is promoting regional and international integration.

Support programs that do not meet targets are therefore not only cause a waste of resources but result in SMEs losing opportunities to enhance their capacity.

The Enterprise Development Agency under the MPI forecasts there will be 450,000 additional SMEs by 2020, bringing the total to 750,000, and they will employ half of the country’s workforce. 

Deputy Minister Dong said that policies and plans designed to support enterprises should encourage creativity and innovation in order develop special or even unique products with high added value and, consequently, enable SME to compete in the domestic as well as foreign markets, with a focus on exports.

He also revealed that approximately VND3 trillion ($133 million) will be spent on specific assistance programs.

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