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SMEs urged to improve their roles in the national economy
The Investment newspaper and the Vietnam Association of Small and Medium enterprises (SMEs) held a conference entitled “SMEs: Roles, challenges and prospects” in Hanoi on October 10 on the occasion of Entrepreneur Day (October 13).
Addressing the conference, deputy minister of Planning and Investment, Nguyen Bich Dat, emphasized that the Business Development Department, and the Central Institute for Economic Management (CIEM) should understand SMEs’ difficulties and provide them with sufficient information on policies, the legal environment, and administrative procedures. In addition, the agencies should submit their proposals on perfecting the investment environment to the Ministry of Planning and Investment (MPI) and the government in order to improve the role of SMEs in the national economy.
Participants said that the development of SMEs has not matched its potential, especially in the context of fluctuations in the world’s economy. The rise in inflation in the country also makes it difficult for SMEs to access capital sources.
Some participants said that support from the State for SMEs is an important factor under the current circumstance while others said that reforming administrative procedures, creating a favourable environment and providing information are key factors for the development of SMEs.
According to statistics from the MPI, the country has 349,300 licensed enterprises with registered capital of VND1.3 billion, 95 percent of which are SMEs. From 2006 to 2008, the number of enterprises, especially SMEs, has increased by more than 40 percent. They have accounted for 29 percent of total registered capital and their revenue has made up 22 percent of GDP.
VOV
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