Da Nang city wants to turn SMEs into growth engine

Da Nang (VNA) – A workshop was opened in Da Nang city on August 2 to learn about foreign experience in developing small- and medium-sized enterprises (SMEs) and to seek to turn them into a growth momentum of the central city.

The two-day function was held by the Da Nang Union of Science and Technology Associations and India’s JA Alpha Business Research and Publishers Ltd.

Experts said SMEs are currently contributing over 50 percent of GDP of the OECD member countries and developing nations. They account for 95 percent of the number of businesses and provide jobs for 60 – 70 percent of the workforce.

SMEs’ exports make up 68 percent and 41 percent of overseas shipments in China and Canada, respectively. The figure is 29 percent in Vietnam, participants said, adding that these firms are becoming an important growth engine of global economies.

Ho Ky Minh, Vice Chairman of the Da Nang People’s Committee said there are more than 16,000 SMEs in the city, accounting for 96 percent of the local businesses. They have helped augment local economic growth, reduce poverty and create jobs.

However, they lack development resources and skillful manpower, while facing obstacles in accessing official capital sources, he noted.

Assoc. Prof Nguyen Vu Hoang at the Academy of Politics Region 1 and Dr Doan Tranh at Duy Tan University said Da Nang needs to reform mechanisms and policies for mobilising, allocating and using public investment capital. It must strongly attract domestic and foreign investment, enhance enterprise restructuring, and develop science and technology to spur SMEs’ expansion.-VNA