Support for SMEs key to progress

The application of science and technology in production is considered important to the development of small and medium sized enterprises (SMEs), according to Pham Minh Tuan from Asia Pacific Incubator Network.

Support for the development of SMEs has been emphasised as one of the key components of Viet Nam’s socio-economic development strategy, he added.

With the National Programme of Technology Innovation to 2020 now ratified, SMEs are set to apply technology in their operations.

The national programme established a target to train about 80,000 SME staff members in technology management and administration by 2020.

Vice president cum general secretary of the Viet Nam Chamber of Commerce and Industry (VCCI) Pham Gia Tuc also stressed the necessity for SMEs to set up their own electronic portals in order to become competitive in world markets.

To date, there are approximately 500,000 enterprises in Viet Nam, a figure that is predicted to double by 2015. About 95 per cent of these operate on a small to medium scale.

SMEs play a significant role in the country’s economic development, contributing more than 40 per cent of the GDP, according to the Association of Small and Medium Enterprises.

According to VCCI’s report in 2010, the application of information technology in SMEs was still limited. Only 46 per cent of enterprises claimed to use e-mail at work and only 20 per cent had their own web sites.

More than 50 per cent said they did not use software to manage human resources, wages or sales.

Business incubators

At a conference with the Ministry of Science and Technology held on June 22, Peter Moors, Director General of Belgium Development Co-operation, said the business incubators had been considered the launching pad for SMEs.

According to the United Nations, a technology business incubator is a facility providing nurturing service in both pre-seed and seed stages of business development, enabling innovation and entrepreneurship.

In Viet Nam, the model of business incubators has been shaped in some universities and enterprises, including the University of Science and Technology, the University of Agriculture and Forestry, FPT Group and Sai Gon Hi-tech Business Incubator.

At the conference, the Ministry of Science and Technology assigned the Technology Application Institute to implement this model of business incubators in Ha Noi.

In HCM City, the model of business incubators has been in its pilot phase since 2007, providing support to SMEs, according to the HCM City Department of Science and Technology.

Pham Tuan Minh from CRC Incubator said the services offered by his company were comprehensive, concerning marketing, business plan development, business IT applications, accounting and legal procedures.

According to Nguyen Dinh Suc, vice president of the Ha Noi Youth Business Incubator Club, young entrepreneurs with feasible business ideas will be assisted by business incubators for 1.5 to 2 years to help them grow into fully – fledged professionals.

The likelihood of success for enterprises that had used an incubator was higher than for other enterprises, he added.

To date, there are about eight business incubators in Viet Nam. The model was created in the US in 1959 and soon developed to become popular in many countries around the world, Suc added. — VNS

Tags: Vietnam companies, Vietnam enterprises, Vietnam SMEs