SMEs seek strength in numbers

The development of small- and medium-sized enterprise (SME) clusters would help them raise their competitiveness and integrate into the world economy, heard a two-day seminar that finished in the capital yesterday.

SME clusters are defined by the United Nations Industrial Development Organ-isation (UNIDO) as being a geographical concentration of enterprises resulting from networking by sector.

SME clusters are commonly found worldwide but not in developing countries like Viet Nam.

Over ninety per cent of Vietnamese enterprises are SMEs and they have played an important role in creating jobs, increasing incomes and contributing to the country’s development. However, their competitiveness has remained low.

Giovanna Ceglie, chief of UNIDO’s Clusters and Business Linkages Unit said that it was necessary to create SME clusters to raise the capacity of SMEs.

Through co-operation with partners at a sectoral and geographical level, enterprises that produce and sell a range of related and/or complementary products can achieve collective efficiency and conquer markets beyond their individual reach.

Deputy Minister of Planning and Investment Nguyen Van Trung said the development of SME clusters would also contribute to the growth of the country’s supporting industries.

Francesco Russo, chief technical advisor of a UNIDO project on SME cluster development, said that after researching the garment and textile, leather and footwear, and wood processing and furniture sectors, it was found that low integration, poor design, marketing and management capacity, and restricted financial access were hindering the development of SME clusters in Viet Nam.

Attendees proposed that the development of SME clusters should be considered a key priority in the country’s SME development plan for the 2011-15 period with a vision to 2020. — VNS

Tags: Vietnam companies, Vietnam enterprises, Vietnam SMEs