Equal, transparent climate necessary for SMEs: PM

A worker wraps medicines at the Sao Kim Pharmaceutical Company. Prime Minister Nguyễn Xuân Phúc has called for an “equal, transparent climate” to help small-and medium-sized enterprises thrive. - VNA/VNS Photo Trọng Đạt

Speaking at the third national congress of the Vietnam Association of SMEs (VINASME) in Hà Nội on Saturday, the PM urged the association to work with its members to expand their share in the domestic market, find export markets and join global production, supply and distribution chains, thereby contributing to agricultural restructuring and rural economic development.

Calling on firms to operate with integrity and avoid abetting “negative phenomena”, Phúc said the Party and State, for their part, have always paid special attention to building and developing the Vietnamese business community.

The Government has been making efforts to build a growth-facilitating governance that serves people and businesses, while encouraging start-ups and creating all the best possible conditions for enterprises, he said.

“The Government has identified its key responsibilities, which include reforming the institution, policy initiation as well as the implementation of national strategies and plans.

“Governance work must ensure transparency and elimination of the ask-give mechanism, interest groups and corruption,” he said.

The enterprises, meanwhile, should grow into strong business groups, acquiring cutting edge technology that will enable them to compete in the global production, supply and distribution chains, Phúc said.

The PM cited a survey showing that only 21 per cent of Vietnamese SMEs have managed to connect to the global supply chain thus far, while the rates in Thailand and Malaysia are 30 and 46 per cent respectively.

Co-operation between Vietnamese firms and transnational corporations might be very challenging, yet it was “the shortest and the best way” for local companies to grow and leave their trademarks in the global production, supply and distribution chains, Phúc said.

Business representatives at the congress expressed their support for the PM’s message and hailed actions taken by the Government to remove difficulties and obstacles for production and business activities.

SMEs account for over 97 per cent of the country’s total businesses, and have significantly contributed to economic growth and job generation.

They have contributed about 40 per cent of the national gross domestic products (GDP), 33 per cent of industrial production value and 30 per cent of export revenues, and employed around half of the national workforce.

The VINASME, set up in 2006, has about 62,000 enterprise members operating in different business sectors across 55 localities in Việt Nam.