HCMC tourism sector needs supporting servicesDao Loan HCMC - The government of HCMC is working on a plan to diversify tourism products but what travel firms need more is to have more supporting services for the sector. Last Tuesday, the city launched a new tour to Can Gio, which takes in three sites -- Dan Xay Ecotourism Resort, Vam Sat Ecotourism Resort and the Vietnam Bird’s Nest Exhibition Center. Two days later, a quarter specializing in gold and jewelry at Hoa Binh Market in District 5 came into being. Not long before, an oriental medicine quarter was opened, also in District 5. Businesses in the sector have expressed appreciation of the city’s effort to create new tourism products. However, these destinations would not be attractive if services for tourists there are not taken good care of. The oriental medicine quarter with a wide range of pharmaceutical products lacks stops and places for visitors to experience products. Similarly, tourism-related services are not … [Read more...] about HCMC tourism sector needs supporting services
It support services for small business
Green financing for small businesses
The Global Green Growth Institute (GGGI), in co-operation with the Ministry of Planning and Investment’s Small- and Medium-sized Enterprise Development Fund (SMEDF), recently announced a draft handbook on its green growth priorities for small- and medium-sized enterprises (SMEs).Under the draft handbook, scheduled to be approved and issued in March 2018, for the first time in Vietnam, local and foreign-owned SMEs are entitled to low-interest loans for their “green” projects – at 5 per cent for a short-term loan and 7 per cent for a long-term loan throughout the loan period. The fund will first focus on three sector groups: agri-fishery-forestry; manufacturing and processing; and water supply and the management and treatment of solid waste and wastewater.Under the Law on Supporting SMEs adopted in June 2017, SMEs refer to firms with no more than 200 employees, maximum total capital of VND100 billion ($4.54 million), and total revenue of the preceding year not … [Read more...] about Green financing for small businesses
IFC joins ABBank to support lending to small businesses and women-owned SMEs
This is the first phase of an up to $150-million financing package IFC is arranging for An Binh Bank (ABBank). At least one third of the funding will go to support women-owned enterprises. With this funding, the bank aims to triple its SME portfolio and quadruple the size of its lending to women-owned SMEs over a five-year period. The outstanding SME portfolio is expected to reach more than $1 billion by 2021.As Vietnam’s economic growth continues, long-term funding for SMEs is going to become critical. While SMEs account for more than 98 per cent of the country’s businesses and 50 per cent of employment, only 30 per cent of the registered SMEs have access to formal financial services.Further, a new IFC study finds that it is even more difficult for women-owned SMEs to obtain bank loans, with an estimated credit gap of $1.2 billion per annum. “The much-needed syndicated funding from IFC and partner banks will help strengthen ABBank’s SME and … [Read more...] about IFC joins ABBank to support lending to small businesses and women-owned SMEs
Making the AEC work for Vietnamese small business
The creation of the AEC in December 2015, intended to support the free flow of commercial goods and services within the 10-member region, was an important economic and policy milestone.Though larger more sophisticated businesses have and are expected to continue to prosper in the new competitive environment, it is obvious to most all the experts that smaller businesses are now struggling in the new marketplace.Given that 90% of all businesses in Vietnam are smallholders, the experts say, members of the public, private and social sectors have their jobs cut out for them to make the transition to the AEC a success.One important first step is to increase small businesses understanding of the AEC and the opportunities it creates. Surveys have shown that the overwhelming number of small businesses (as many as seven out of 10) have little to no awareness or understanding of the AEC.Only three out of 10 thought they fully understood how the AEC would affect their business … [Read more...] about Making the AEC work for Vietnamese small business
Optimizing conditions for Vietnamese businesses to grow
Government Resolution 35 sets out major goals for Vietnam to achieve by 2020. They include developing Vietnamese enterprises of high competitiveness and sustainable development and having 1 million operating firms, including large-sized and capital-intensive companies.The resolution specifies several tasks and solutions to achieve the target, with the highest priorities being administrative reform, improving the business environment to support start-ups and innovative enterprises, ensuring the right to do business, ensuring equal access to resources and business opportunities, reducing business costs, and protecting the legitimate rights and interests of enterprises.The resolution, for the first time, considers private enterprises a driving force of national economic development. The government calls for transparent inspection, examination, and audit plans for enterprises to avoid duplication and overlapping. Nguyen Thi Cuc, a member of the Vietnam Tax Consultants’ … [Read more...] about Optimizing conditions for Vietnamese businesses to grow
PCI: Momentum for Local Business Environment Improvement
The Vietnam Chamber of Commerce and Industry (VCCI) and the United States Agency for International Development (USAID) recently launched the annual Provincial Competitiveness Index Report 2014 (PCI 2014) in Hanoi. This is the 10th edition of PCI Report.The 2014 PCI survey is based on responses from nearly 10,000 domestic private enterprises across 63 provinces in Vietnam. Besides, PCI 2014 has remarks from foreign-invested companies in Vietnam on Vietnamese business environment and remarks of Vietnamese companies on opportunities and challenges from Trans-Pacific Partnership (TPP) and labour relations in companies. More action to create a favourable business environmentDr Vu Tien Loc, VCCI President, said, PCI Report 2014 is launched when the Government of Vietnam is pushing for institutional reform and improving national competitiveness. The Government’s Resolution No. 19 clearly defines the objectives Vietnam needs to reach in many fields of administration and places the … [Read more...] about PCI: Momentum for Local Business Environment Improvement
Economic Integration: Policy Space Needs Expanding for Better Business Support
Vietnam's international economic integration is rapidly accelerating, with a lot of events that require ministries and branches to further strengthen integration information and communication dissemination to help State officials, the business community and people to timely capture information, understand and carry out international economic integration commitments. Vietnam Business Forum interviewed Mr Tran Huy Hien, Secretary General of Vietnam Logistics Business Association (VLA) and General Director of Daco Logistics Company, on this issue. Vy Anh reports. How do you assess Vietnam’s international economic integration information in recent years? What issues are concerned? Integration information has been intensified by ministries and central agencies quite soon. However, information is still generic, not specific and detailed, for each agreement. Meanwhile, businesses are now very much interested in tariff lines and enforcement roadmaps specified in trade … [Read more...] about Economic Integration: Policy Space Needs Expanding for Better Business Support
IT Consulting Center opened in Hanoi for small and medium enterprises
Photo: VNGOVNet The opening of the Hanoi IT Consulting Center (HITCC) is one of major cooperative activities under the national project “Supporting businesses in IT application for integration and development during 2005-2010” assigned to the VCCI by the Government in late 2005. This is the second IT center for small and medium enterprises in Vietnam, after the first one in Hồ Chí Minh City. The center will assist Vietnamese small and medium businesses in accessing to IT services and resources, including available data bases or online training services, in order to improve their competitiveness in doing business and international integration. At the HITCC, small and medium enterprises will be provided with consulting services on IT application solutions, management and use of IT products, application into production and business. They can obtain the services through direct consultancy or via telephone, email, or online system at www.ibt.vn or … [Read more...] about IT Consulting Center opened in Hanoi for small and medium enterprises
Interest-rate cut too low for many businesses
Early last week, Prime Minister Nguyen Tan Dung ordered an interest rate cut of one percentage point following reports about a drop in the inflation rate and improved liquidity in the last few months of 2011. Following his decision, local banks lowered their deposit and lending interest rates, a move expected to help enterprises and have a strong impact on the entire economy. However, interest-rate cuts will not be enough for enterprises to thrive. Banks and enterprises most affected by the interest rate cut are still facing barriers and haven't benefited from the cut. Some lenders, particularly small ones, said that in previous months banks found it difficult to mobilise capital resources when the deposit interest rate was capped at 14 per cent. Some even had to apply interest rates beyond the central bank's cap to raise capital to ensure liquidity. Thus, many banks' capital mobilisation will become much more tense as the deposit interest rate now has been cut to 13 per cent per … [Read more...] about Interest-rate cut too low for many businesses
Small business group dismisses possible interest-subsidy fund
HA NOI — Viet Nam Association of Small- and Medium-sized Enterprises chairman Nguyen Xuan Son is calling impractical a ministry plan to set up a development fund for small businesses. The Ministry of Planning and Investment is seeking Government approval for the plan, which would aim to support small- and medium-sized enterprises (SMEs) to enter or expand into overseas markets. The fund would support SMEs in the fields of manufacturing, information technology, seafood processing, bio-technology, marine services, food processing and tourism. The fund, if approved, would come into operation this year and would provide loans to SMEs at preferential interest rates at 80 per cent of prevailing market interest rates. But with prevailing interest rates of over 20 per cent per year, Son said, the fund assistance would still leave SMEs struggling under crippling credit costs. With the Government to entrust the fund capital to commercial banks to offset their interest reductions to … [Read more...] about Small business group dismisses possible interest-subsidy fund