At the conference in Hanoi (Photo: chinhphu.vn) Hanoi (VNA) – Small and medium-sizedenterprises (SMEs) need a transparent business environment and fair competitionrather than too much support that could end up being impractical, experts said.
There was general agreement on this issue atconferences held in Hanoi and HCM City last week respectively by the VietnamChamber of Commerce and Industry (VCCI) and the Central Council of VietnamBusiness Associations.
The conferences aimed to gather feedback on adraft law on support for SMEs.
Several participants said that no matter whatthe scale, enterprises need to be treated fairly and protected against legalbarriers like relatively limited access to preferential credit.
“SMEs need protection rather than support,” saidPhan Dang Tuat of the Ministry of Industry and Trade, even suggesting that thename of the law should be changed to Protecting SMEs.
He also said that using the word “support” couldaffect businesses in implementing free trade agreements.
Furthermore, the supports mentioned in the draftlaw were too general and might be impractical given the Government’s budgetaryconstraints, with 97 percent of the firms in the country classified in the SMEcategory, Tuat said.
“It will be better if the Government creates atransparent business environment and equal access to bank credit, land andother infrastructure,” he said.
Truong Thanh Duc, with the firm Basico, said allincentives should be considered carefully because overdoing it could motivatefirms to become slack and dependent.
“It is vital to have appropriate policies toencourage SMEs,” Duc said.
Other experts said the criteria for being an SMEmust be clarified to ensure policies benefit the right firms.
Nguyen Ngoc Tuan, President of Dong Nai Associationof Importers and Exporters, said that administrative procedures must be furthersimplified, so that household businesses are encouraged to become enterprises.
Lawyer Hoang Van Son also said that studies mustbe carried out to identify difficulties faced by the SMEs, so that realisticand practical supports can be provided.
He noted that while there are a significantnumber of new firms established every year, the number of those which aredissolved or go bankrupt is also considerable.
According to the General Statistics Office,there are around 570,000 firms in operation nation-wide.
The Government has targeted the establishment ofa million enterprises by 2020. – VNA
There was general agreement on this issue atconferences held in Hanoi and HCM City last week respectively by the VietnamChamber of Commerce and Industry (VCCI) and the Central Council of VietnamBusiness Associations.
The conferences aimed to gather feedback on adraft law on support for SMEs.
Several participants said that no matter whatthe scale, enterprises need to be treated fairly and protected against legalbarriers like relatively limited access to preferential credit.
“SMEs need protection rather than support,” saidPhan Dang Tuat of the Ministry of Industry and Trade, even suggesting that thename of the law should be changed to Protecting SMEs.
He also said that using the word “support” couldaffect businesses in implementing free trade agreements.
Furthermore, the supports mentioned in the draftlaw were too general and might be impractical given the Government’s budgetaryconstraints, with 97 percent of the firms in the country classified in the SMEcategory, Tuat said.
“It will be better if the Government creates atransparent business environment and equal access to bank credit, land andother infrastructure,” he said.
Truong Thanh Duc, with the firm Basico, said allincentives should be considered carefully because overdoing it could motivatefirms to become slack and dependent.
“It is vital to have appropriate policies toencourage SMEs,” Duc said.
Other experts said the criteria for being an SMEmust be clarified to ensure policies benefit the right firms.
Nguyen Ngoc Tuan, President of Dong Nai Associationof Importers and Exporters, said that administrative procedures must be furthersimplified, so that household businesses are encouraged to become enterprises.
Lawyer Hoang Van Son also said that studies mustbe carried out to identify difficulties faced by the SMEs, so that realisticand practical supports can be provided.
He noted that while there are a significantnumber of new firms established every year, the number of those which aredissolved or go bankrupt is also considerable.
According to the General Statistics Office,there are around 570,000 firms in operation nation-wide.
VNA
