New report assesses performance of nation
The Danish embassy in Viet Nam and the Central Institute of Economic Management (CIEM) issued a report on Vietnam’s business environment and its small and medium-sized enterprises (SMEs) on Jan 15.
Titled “Characteristics of the Vietnamese Business Environment: Evidence from a SME Survey in 2007,” the report addresses a wide range of issues, including bureaucracy, employment, social welfare, production, technology, investment, credit accessibility and environmental protection.
Compiled using studies of nearly 2,500 private SMEs conducted by CIEM and Copenhagen University, the report analyses the current state of Vietnam’s SMEs and issues relating to the development of the private sector.
The business environment has improved, demonstrated by the low rate of SME falling into bankruptcy. While labour productivity remains limited, SMEs have generated a substantial number of jobs, according to the report.
It also states that more than half of the country’s SMEs possess insufficient knowledge of the relevant laws and regulations, the rate of SMEs suffering financial difficulties has reduced insignificantly, and that compliance with environment protection standards remains a challenge to all SMEs operating in production.
The report is expected to lay the foundation for further research into SMEs as well as for policymaking in related issues.
Danish ambassador Peter Lysholt Hansen said that it is important to continue seeking solutions to help the nation’s SMEs to develop.
According to the Ministry of Planning and Investment, the Government is currently focusing on measures to remove obstacles to SMEs in developing their businesses and improving competitiveness. Those measures include tax policies such as tax reduction, exemption or deferment, and financial support via credit guarantee or soft loans. (VNA)
