Vietnam: SMEs urged to get competitive
The impact of globalisation on Vietnamese small and medium-sized enterprises (SMEs) topped the agenda at a joint Viet Nam-Japan conference held yesterday in Ha Noi.
The vice chairman of the Viet Nam Chamber of Commerce and Industry, Hoang Van Dung, speaking at the forum, said the nation’s small businesses would face harsh competition from international rivals as a result of the country’s WTO commitments to slash tariffs and end export subsidies.
SMEs, which account for up to 95 per cent of commercial enterprises in Viet Nam, lack strong financial backing, management capacity, technology and market information, he said.
This compounds challenges already faced as the country opens its markets, he added, stressing that SMEs must become more competitive if they are to take advantage of opportunities WTO membership would bring.
The SME association said private companies have flourished in Viet Nam over the last decade, especially in the past five years. Viet Nam now has over 225,000 SMEs and the figure is expected to almost double by 2010, he said.
Pham Chi Lan, a member from the Prime Minister’s Research Committee, said that strong finances, quality products and services, effective marketing, low production costs, strong trademarks and a skilled labour force were key factors in enhancing the competitiveness of the country’s SMEs.
She also suggested that government streamline administrative procedures, create an equitable business environment, and prepare development strategies to help enterprises develop a support system for local enterprises.
Participants at the conference also heard presentations on the experiences of Japan and China in taking advantage of opportunities in the age of globalisation, and on Japanese experiences in developing supporting industries to the benefit of the SME sector.
Source: Viet Nam News
