Enabling Envt for SME Promotion and Private Sector Development GTZ Vietnam Presentation at Sept Netw

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Enabling Envt for SME Promotion and Private
Sector DevelopmentGTZ VietnamPresentation at
Sept Network WorkshopHaikou, China - Nov. 2004
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Private Sector in Viet Nam Important Milestones

• 1986 First step of Doi Moi (Reform) household
  economy/ cooperative reform
• 1990 private enterprise and company laws
• 1992 revision of the Constitution to recognize
  the private sector
• 2000 Enterprise Law
• 2001 (Apr.) Socio-economic Devt Strategy
• 2001 (Nov) further revision of Constitution
• 2002 (March) Resolution of the CPV
• 2002 (May) Comprehensive Poverty Reduction and
  Growth Strategy (CPRGS)
• 2003 Land Law, Decree on Associations
• 2004 Bankruptcy Law, Competition Law
• To come Common Investment Law Unified
  Enterprise Law

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Our Overall Objective Improvement in
Competitiveness of Private SMEs in Vietnam
Creating the momentum for an approach of Local
Economic Development
Building relations with key stakeholders (policy
makers, donors, business community)
SME Policy/ Enabling Environment for Business
LED/ Outreach to the Provincial Level
Specific Business Development Services Value
Chain Devt
Building cooperation relations with the
international business community (PPP)
Enhancing market orientation and sustainability
of business services built up under the project
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Our 5 Pillars in the Strategy for an Enabling Biz
Envt
Objective An Improved Business Environment for
Private SMEs
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A Strong Strategic Partner Network Ensures a
Higher Chance of Success
We are Creating a Strong Partner Networks (Govt
Think-Thank, Advisory Board, Business
Association, Local Authorities, other Donors)
Business Associations
Provincial Authorities
Mass Media
Other Donors Projects
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An Example of Success Enabling Environment for
BDS
Focus Market and Policy Research Awareness
Creation

• Approach of the study
• Focus on legal constraints affecting the
  development of the BDS market
• Conducted in cooperation with CIEM (policy think
  tank), Vision (consultancy company) and VCCI
  (Chamber of Commerce)
• Covering 7 services in the first phase and 3
  services in the second

Findings on Legal Constraints on IP Services
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An Example of Success Enabling Environment for
BDS in Intelectual Property Services (cont.)
BDS Research Report IP service providers must
have min. 2 members with IP agent certificates
(very difficult to obtain)
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New Initiatives for a Better Investment Climate
for Private Sector
Unified Enterprise Law, and Common Investment Law
With Strong Participation from Domestic and
Foreign Business Association (e.g. GBA,
EuroCham, Young Biz Asso.)
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Example Implementation of RIA
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Donor Coordination

• Bilateral Partnerships with a number of projects
• UNDP
• Swisscontact
• IFC/ Mekong Private Sector Development
  Facility
• EBIC (EU)

Presentation of Study co-hosted by GTZ and ADB in
January 2003
Input into the Work of the International
Committee of Donor Agencies on SME Development
Some of our studies have been extensively used by
ADB SME Roadmap
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Key Lessons Learnt
Be demand- oriented and flexible to meet the real
needs of partners. Be well-informed about the
reform agenda of the Government and try to find
way to supports. Choose the right partner for the
intended intervention and objective Strengthen
the ownership of partners organizations in the
activity. Be persistent. Changes in policy and
regulations may take time.
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For additional information, please visit
www.sme-gtz.org.vn or write to us at
corinna.kuesel_at_gtz.de or
binh.le_at_gtz.de