There are three main challenges that small and medium-sized enterprises in Vietnam face with the advent of the fourth industrial revolution, a senior member of the US-ASEAN Business Council has said. (Source: baodauthau.vn) HCM City (VNA) - The fourth Industrial Revolution (Industry 4.0)is providing numerous challenges, besides opportunities, to small- andmedium-sized enterprises (SMEs) in joining global value chain, heard a workshopin Ho Chi Minh City on October 23.
The workshop, organised by the Vietnam Chamber of Commerce and Industry (VCCI) and the US-ASEAN Business Council, was meant to be a platform for SMEs, business groups and organisations to discuss opportunities and challenges for small firms in Vietnam.
There are three main challenges that SMEs in Vietnam face with the advent of the fourth Industrial Revolution, said Michael Michalak, Senior Vice President of the council.
They are greater access to domestic and international markets to be a part of the global supply chain, access to technology and information communication tools, and access to finance, he added.
Tran Vinh Tuyen, Vice Chairman of the HCM CityPeople’s Committee, said though SMEs are the backbone of Vietnam’s economy --with around 97 percent of Vietnamese firms being small or medium-sized -- theystill face many challenges with respect to management, human resourcestraining, commercialisation and adoption of new technologies.
US Ambassador to Vietnam Ted Osius, said: “SMEs,not SOEs, will grow Vietnam’s economy. That’s why it is important to helpSMEs.”
He said to do so three things must be achieved.The first, he said, is for the Government to create an enabling environment.
“Bureaucracy must help enhance transparency,reduce the amount of red tape, the number of approval steps, the number offormal and informal fees and the amount of time it takes to register abusiness.”
If this is achieved, companies could spend more time to create new products andnew jobs to bring prosperity, he said.
Second is reforming the education system to provide companies with innovativegraduates and creative thinkers.
The last thing is to think creatively and think big.
“SMEs must understand their market includes not just Vietnam¸ but the broaderworld."
To help SMEs enhance their competiveness andcapacity, the US-ASEAN Business Council works with local ASEAN SMEs supportorganisations such as VCCI in Vietnam to organise seminars on topics thatVietnamese SMEs are interested in, according to Michalak.
Some of the chosen topics are technologyassistance, business planning skills and basic accounting, he said.
The council helped establish the ASEAN SMEAcademy in May 2016 to put all the training materials online where SMEentrepreneurs can access and learn anywhere and anytime using computers, smartphones and tablets.
The online gateway also helps SMEs findnetworking opportunities and gain access to region-specific information tofurther grow their business.
However, not every business can easily access or benefit from it due totechnological disadvantages, especially women-owned SMEs.
Mai Thi Dieu Huyen of the VCCI’s Vietnam WomenEntrepreneurs Council said from her experience working with womenentrepreneurs, women-owned SMEs face even more challenges than men-owned onesdue to gender issues.
“We have talked a lot about challenges faced bySMEs, but not specifically women-owned SMEs.”
Some of the common challenges are lack of market information, businessknowledge and skills and technology, she said. Women in remote areas who havelimited access to high-speed internet cannot easily access online trainingcourses, she said.
What is needed is greater support for SMEs in remote areas to help them growtogether with those in urban areas where internet infrastructure is good, shesaid, adding that it would also help the country achieve its goal of inclusiveeconomic growth.-VNA
They are greater access to domestic and international markets to be a part of the global supply chain, access to technology and information communication tools, and access to finance, he added.
Tran Vinh Tuyen, Vice Chairman of the HCM CityPeople’s Committee, said though SMEs are the backbone of Vietnam’s economy --with around 97 percent of Vietnamese firms being small or medium-sized -- theystill face many challenges with respect to management, human resourcestraining, commercialisation and adoption of new technologies.
US Ambassador to Vietnam Ted Osius, said: “SMEs,not SOEs, will grow Vietnam’s economy. That’s why it is important to helpSMEs.”
He said to do so three things must be achieved.The first, he said, is for the Government to create an enabling environment.
“Bureaucracy must help enhance transparency,reduce the amount of red tape, the number of approval steps, the number offormal and informal fees and the amount of time it takes to register abusiness.”
If this is achieved, companies could spend more time to create new products andnew jobs to bring prosperity, he said.
Second is reforming the education system to provide companies with innovativegraduates and creative thinkers.
The last thing is to think creatively and think big.
“SMEs must understand their market includes not just Vietnam¸ but the broaderworld."
To help SMEs enhance their competiveness andcapacity, the US-ASEAN Business Council works with local ASEAN SMEs supportorganisations such as VCCI in Vietnam to organise seminars on topics thatVietnamese SMEs are interested in, according to Michalak.
Some of the chosen topics are technologyassistance, business planning skills and basic accounting, he said.
The council helped establish the ASEAN SMEAcademy in May 2016 to put all the training materials online where SMEentrepreneurs can access and learn anywhere and anytime using computers, smartphones and tablets.
The online gateway also helps SMEs findnetworking opportunities and gain access to region-specific information tofurther grow their business.
However, not every business can easily access or benefit from it due totechnological disadvantages, especially women-owned SMEs.
Mai Thi Dieu Huyen of the VCCI’s Vietnam WomenEntrepreneurs Council said from her experience working with womenentrepreneurs, women-owned SMEs face even more challenges than men-owned onesdue to gender issues.
“We have talked a lot about challenges faced bySMEs, but not specifically women-owned SMEs.”
Some of the common challenges are lack of market information, businessknowledge and skills and technology, she said. Women in remote areas who havelimited access to high-speed internet cannot easily access online trainingcourses, she said.
What is needed is greater support for SMEs in remote areas to help them growtogether with those in urban areas where internet infrastructure is good, shesaid, adding that it would also help the country achieve its goal of inclusiveeconomic growth.-VNA
VNA
