Tin Pháp lý
Wholesale, retail trade attractive to small businesses

7 September 2015
The Saigon Times - Tu Hoang

The proportions were 20.5% for the service sector and 15.7% for the manufacturing sector, according to the Asia SME Finance Monitor 2014 report covering 20 developing countries in Asia.

The report said Vietnam had had a total of 359,794 MSMEs as of the end of 2013, making up 96.4% of total enterprises in the country. MSMEs employed 5.1 million workers, or 46.8% of Vietnam’s workforce.

Privately owned firms account for 97.2% of the total in Vietnam, foreign-invested companies for 2.7% and state-owned enterprises the remainder.

According to the report, regional integration and trade offers opportunities for smaller firms to explore offshore markets but also expose them to tougher competition.

The report stressed the need to provide financial support for Asia’s small- and medium-sized enterprises (SMEs) to grow into dynamic, internationally competitive companies. This is key to strong, sustainable growth in Asia as the world recovers from the recent global economic slowdown.

“Asia has millions of SMEs but few of them are able to grow to the point where they can innovate or be part of the global supply chain. To do this, they need more growth capital and opportunities to access various financing channels,” said Noritaka Akamatsu, senior advisor in ADB’s Sustainable Development and Climate Change Department, which produced the report.

SMEs take an average of 96% of all registered firms and employ 62% of the labor force, according to the report. However, they contribute only 42% of economic output.

Governments in the region need to help SMEs become more competitive and participate in global value chains. This requires governments to facilitate SMEs to access new financing, such as supply chain finance.

Limited access to bank credit is a persistent problem in Asia and the Pacific, the report pointed out. Lending to SMEs has declined over the course of the global financial crisis and in 2014, they got only 18.7% of total bank loans.
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