Improper implementation
According
to the Agency for Enterprises Development under the Ministry of
Planning and Investment, the government has applied many mechanisms and
policies aimed at supporting SME development in terms of finance,
credit, production spaces, market expansion, business management,
information and consultancy. These policies are specified in the
government’s legal documents on SME support.
The
results of a survey carried out by the General Statistics Office with
10,120 businesses in April 2012 showed that about 90 percent of these
businesses said they had no access to preferential loans despite a
number of government programs and other promotion programs. A recent
survey conducted by the Agency for Enterprises Development with
assistance from the Japan International Cooperation Agency (JICA) also
showed that more than 60 percent of surveyed SMEs said they did not know
anything about state support policies in terms of technical and
technological innovation, while 35.5 percent said they heard about the
policies but lacked detailed information, and over 60 percent said they
had never received any government support for technological innovation
as well as trade promotion and industry promotion.
A liaison organization is lacking
The
leadership of the Agency for Enterprises Development said state support
did not reach SMEs due to various reasons. One of the reasons is that a
liaison organization responsible for coordinating the implementation of
state support policies from the central level to the local level is
lacking. Another reason is that state support policies are not really
practical and do not receive an active response from businesses.
Deputy
Minister of Planning and Investment Dang Huy Dong said although lots of
SME support policies have been implemented in the recent times, they
have not met the desires of SMEs.
Le
Minh Hien, Head of the Business Registration Office of Hai Duong
Province, said there had been times when local businesses within one
week received three invitation letters with almost the same contents
from the Ministry of Industry and Trade, the Ministry of Science and
Technology and the General Department of Taxation, which provided them
with access to business management consultancy. There must be a liaison
organization to prevent such overlaps.
What do businesses want?
The
SME sector has developed very rapidly since 2000 when the Enterprise
Law came into effect. The number of SMEs in 2011 was 8.5 times higher
that that of 2000. Also in 2011, the SME sector created jobs for over
five million workers, 5.2 times higher compared with 2000. Revenue of
the SME sector in 2011 grew 17.2 times compared with 2000, according to
the Ministry of Planning and Investment.
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With
his 10-year experience of working as a business leader, Le Minh Hien
said what SMEs want is not money but assistance in terms of the law.
Sharing the opinion of Le Minh Hien, the leader of the Yen Bai Province
Department of Planning and Investment said what SMEs want now was not
VND5-10 million but assistance in terms of mechanism, administrative
procedures and law, which helps them accelerate the implementation of
investment projects.
Assisting
and creating favorable conditions for SMEs to develop is necessary, but
it is necessary to ensure that state support reaches the correct
businesses and meets their desires. The government must learn what SMEs
need in order to provide them with the most practical support and ensure
that state support reaches the correct businesses, especially in the
current context of limited state budget, Deputy Minister Dang Huy Dong
emphasized./.
Source: VEN