Le Ngoc Anh, owner of Deborah JSC, shows customers bathroom equipment provided by the company (Photo courtesy of the company) Hanoi (VNS/VNA) – There are around 145,000small-and-medium-sized enterprises (SMEs) currently run by women in Vietnam,accounting for a quarter of all SMEs nationally.
Such businesses play a crucial role for growth, contributing 30 percent of GDPand more than half of job creation.
But it’s not just at thetop where women are making a difference.
The World Economic Forumsays Vietnam is among the top 25 countries in the world closing the gender gapin the labour force.
Of all women, 73 percent are in gainful employment, just 10 percent lower thantheir male counterparts.
By 2020, Vietnam wants one million enterprises and of them they are targetingmore than a third owned by women.
That means in the next two years, the amount of companies with a woman at thehelm will have to increase threefold.
And that’s a challenge.
Last year was a big success for Vietnam’s economy with GDP growth surpassing 7percent, but for the first time the number of enterprises going under topped100,000.
“My biggest obstacle is the lack of capital. I need cash to purchasemerchandise and prevent risks,” Ho Thi Hai Ngan, an owner of an electronicsshop in Dong Nai province, said.
The 34-year-old businesswoman took time to find her feet.
Her first two commercial ventures failed but it was a case of third time luckyfor Ngan in 2016 when she and her husband opened the store.
She borrowed 25,000 USD from VPBank withreceivables pledged as security helping her explore new corporate clients.
Theneed for capital is common among SME owners, especially women, who sometimesface roadblocks related to the lack of collateral and have to face consciousand unconscious biases.
Men often have broader vision and better planning skills while women are risk-aversewhich, in many cases, make them see an opportunity slip away, Ngan said.
“Women cannot go out anddrink a lot with clients like men, and in Vietnam, it’s difficult to getclients without drinking,” she said.
“Asian women need time to get used to their role shifting from a housewife to abusiness owner.”
A market study by the International Finance Corporation (IFC) showed that 70percent of women operated enterprises (WOEs) in developing countries areunserved or underserved by financial institutions. The financing gap isestimated at 1.19 billion USD for WOEs throughout Vietnam.
“To continue its rapid growth, Vietnam needs to support this sector to accesscredit and markets. Much more can be done to connect women SMEs to local andglobal value chains,” said Amy Luinstra, IFC Programme Manager and GenderAdvisor, East Asia Pacific.
In the knowledge based economy, femaleentrepreneurs must also work harder to get capital, Luinstra said, noting thatonly 7 percent of private equity and venture capital is invested in women-ledcompanies in emerging markets.
“Women-ownedenterprises are an important customer segment of VPBank,” according to a representativeof the bank.
“From an entrepreneur perspective, Vietnamese women are active, creative andenthusiastic. They participate in economic activities and are not inferior tomen,” he said, citing examples that women are more willing to be housewives inthe South Asia, Middle East and Africa.
VPBank in 2018 launched a loan package specifically designed for women-ownedbusinesses and has disbursed 12,000 loans to WOEs so far. Besides, the bank hasalso built free access to non-financial services for women-led SMEs, enablingthem to share experience with each other and find new networking opportunitiesfor their business.
More than 50 percent of the bank’s women customers operate in distribution andservice industries. "And we find that women are more sensitive thanmen in terms of service quality and when being satisfied, they are veryattached," the bank’s representative said.
Doing business in the time of integration and technological revolution isdifficult and this is amplified by the inconsistent and changing legalframework, creating a big obstacle for businesses, according to Ha Thi ThuThanh, Vice President of the Hanoi Association for Women Entrepreneurs.
In addition, the new era also requires womenentrepreneurs to constantly make efforts, be proactive and creative and havestrong mind to cope with challenges, Thanh said and added that they needed moresupport from the Government.
Froma businesswomen perspective, Ngan hopes the Government and State agenciessupport women in explaining and clarifying policies and legal regulationsrelated to their businesses, as well as enable them to participate more in thetrade and investment promotion activities organised by the State agencies.
Her successful electronics business told her that, besides funding, theinvestment in business relationships and exchanges ideas will pave a way forsuccess.
In the meeting with women entrepreneurs early this month ahead of theInternational Women Day (March 8), Prime Minister Nguyen Xuan Phuc reiteratedthe Government’s support for women-led businesses. He also suggested femaleentrepreneurs continue learning and enhancing skills, contributing better tothe country’s economic development.-VNS/VNA
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