Vietnamese SMEs upbeat about economy: survey

Jeff Mclean (C), general manager of UPS Vietnam, at the function held yesterday at the Sofitel Plaza Saigon in District 1 to announce the fifth UPS Asia Business Monitor 2010 - Photo: Nhan Tam

HCMC – Some 72% of 100 Vietnamese small and medium enterprises (SMEs) are optimistic that they will perform better business in 2010, according to a survey conducted in the Asia-Pacific region whose results were released here on Wednesday.

For economic sectors, the construction industry will continue to boom as 53% of Vietnamese SMEs believe that this sector continues to be the country’s key growth industry this year, followed by IT (36%) and leisure and tourism (28%).

In the medium term for between three and five coming years, local SMEs still place the top choice on the construction industry as the key economic pillar with 53%, followed by agriculture (29%), leisure and tourism (29%), and IT (26%), according to the fifth UPS Asia Business Monitor (ABM).

The survey, outsourced to the independent research organization TNS in Hong Kong by the logistics service provider UPS, was conducted between March 11 and April 20 this year. This is the first time Vietnam participated in the annual UPS ABM, which also covers other markets like Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.

Vietnamese SMEs also cast an optimistic view on the Asia-Pacific region, with some 59% believing that the Asia Pacific economy would continue to grow while 9% of them expect a decline and the remaining 32% expect the economy to remain the same.

Jeff Mclean, general manager of UPS Vietnam, said that the Vietnam survey results would greatly assist the company in how to better meet the needs of local SMEs as they compete in the global market.

However, he added that despite the prevailing positive growth sentiment, Vietnam seems to be the least optimistic regarding workforce projection in the region. An overwhelming 61% of those surveyed intend to reduce their workforce, while none of them plan to increase their workforce.

“They have optimistic views about the future, but they still feel worried,” Mclean told the Daily after the function to announce the survey, adding that they just want to take advantage of current human resources to overcome the difficulties.

The survey also showed that although the Vietnamese economy is expected to grow this year, local entrepreneurs still encounter challenges as about 7 out of 10 Vietnamese SMEs say that their top business concern is costs.

The second biggest concern is the high interest rate while competition is the third biggest concern.

UPS ABM 2010 surveyed 1,351 decision-makers of SMEs between March 11 and April 20 this year. SMEs are defined as companies with fewer than 250 employees. Respondents were from a range of industries such as electronics, construction, food and beverage, services, manufacturing, automotive, garments and textiles, IT, tourism and hotel, healthcare and pharmaceuticals and others.

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Vietnamese SMEs upbeat about economy: survey

Jeff Mclean (C), general manager of UPS Vietnam, at the function held yesterday at the Sofitel Plaza Saigon in District 1 to announce the fifth UPS Asia Business Monitor 2010 - Photo: Nhan Tam

HCMC – Some 72% of 100 Vietnamese small and medium enterprises (SMEs) are optimistic that they will perform better business in 2010, according to a survey conducted in the Asia-Pacific region whose results were released here on Wednesday.

For economic sectors, the construction industry will continue to boom as 53% of Vietnamese SMEs believe that this sector continues to be the country’s key growth industry this year, followed by IT (36%) and leisure and tourism (28%).

In the medium term for between three and five coming years, local SMEs still place the top choice on the construction industry as the key economic pillar with 53%, followed by agriculture (29%), leisure and tourism (29%), and IT (26%), according to the fifth UPS Asia Business Monitor (ABM).

The survey, outsourced to the independent research organization TNS in Hong Kong by the logistics service provider UPS, was conducted between March 11 and April 20 this year. This is the first time Vietnam participated in the annual UPS ABM, which also covers other markets like Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.

Vietnamese SMEs also cast an optimistic view on the Asia-Pacific region, with some 59% believing that the Asia Pacific economy would continue to grow while 9% of them expect a decline and the remaining 32% expect the economy to remain the same.

Jeff Mclean, general manager of UPS Vietnam, said that the Vietnam survey results would greatly assist the company in how to better meet the needs of local SMEs as they compete in the global market.

However, he added that despite the prevailing positive growth sentiment, Vietnam seems to be the least optimistic regarding workforce projection in the region. An overwhelming 61% of those surveyed intend to reduce their workforce, while none of them plan to increase their workforce.

“They have optimistic views about the future, but they still feel worried,” Mclean told the Daily after the function to announce the survey, adding that they just want to take advantage of current human resources to overcome the difficulties.

The survey also showed that although the Vietnamese economy is expected to grow this year, local entrepreneurs still encounter challenges as about 7 out of 10 Vietnamese SMEs say that their top business concern is costs.

The second biggest concern is the high interest rate while competition is the third biggest concern.

UPS ABM 2010 surveyed 1,351 decision-makers of SMEs between March 11 and April 20 this year. SMEs are defined as companies with fewer than 250 employees. Respondents were from a range of industries such as electronics, construction, food and beverage, services, manufacturing, automotive, garments and textiles, IT, tourism and hotel, healthcare and pharmaceuticals and others.

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SMEs believe in decisive role for national development

A majority of Vietnam’s small- and medium-sized enterprises (SMEs) believed in their decisive role for the future of the national economy as well as were their business development prospects.

The result was indicated in an annual survey on Asia’s business situation conducted by the world’s leading transportation group UPS called Asia Business Monitor (ABM) which was announced Wednesday.

The 2010 ABM was conducted on around 1,350 leaders of SMEs from 13 countries and territories, including Australia , China , Hong Kong , India , Indonesia , Japan , the Republic of Korea , Malaysia , the Philippines , Singapore , Taiwan , Thailand and Vietnam . This was the first time Vietnam took part in the survey.

According to the survey, 59 percent of Vietnamese SMEs showed their optimism about further development of the Asia-Pacific economy, 9 percent said the regional economy sees a downward trend and the remaining 32 percent said it will remain unchanged.

Vietnam was the second optimistic market in the region in business development prospect in 2010 with 72 percent of interviewed businesses saying their companies will reap better results this year. Indian businesses are the most optimistic about this prospect with 85 percent.

Although nine out of ten Vietnamese SMEs pay attention to business activities in the Asia-Pacific market, they also expect their growths in other regions. Eighty-one percent of surveyed businesses forecast that Vietnam ’s business activities will increase 61 percent in North American and 60 percent in Europe .

Fifty-eight percent of Vietnamese SMEs said international business has positive impacts and opens up new opportunities for their operations. They added that architecture-construction, information technology and tourism will be key sectors in 2010.

Although the national economy is forecast to keep growing this year, Vietnamese businesses are facing a lot of challenges, particularly, high credit interest rate and competitiveness pressure.

Vietnam’s SMEs said the government’s supportive polices are very necessary for them to improve their competitiveness.

 

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SMEs believe in decisive role for national development

A majority of Vietnam’s small- and medium-sized enterprises (SMEs)
believed in their decisive role for the future of the national economy
as well as were their business development prospects.

The result was indicated in an annual survey on Asia’s business
situation conducted by the world’s leading transportation group UPS
called Asia Business Monitor (ABM) which was announced on September 29.

The 2010 ABM was conducted on around 1,350
leaders of SMEs from 13 countries and territories, including Australia ,
China , Hong Kong , India , Indonesia , Japan , the Republic of
Korea , Malaysia , the Philippines , Singapore , Taiwan , Thailand
and Vietnam . This was the first time Vietnam took part in the
survey.

According to the survey, 59 percent of
Vietnamese SMEs showed their optimism about further development of the
Asia-Pacific economy, 9 percent said the regional economy sees a
downward trend and the remaining 32 percent said it will remain
unchanged.

Vietnam was the second optimistic
market in the region in business development prospect in 2010 with 72
percent of interviewed businesses saying their companies will reap
better results this year. Indian businesses are the most optimistic
about this prospect with 85 percent.

Although
nine out of ten Vietnamese SMEs pay attention to business activities in
the Asia-Pacific market, they also expect their growths in other
regions. Eighty-one percent of surveyed businesses forecast that
Vietnam ’s business activities will increase 61 percent in North
American and 60 percent in Europe .

Fifty-eight
percent of Vietnamese SMEs said international business has positive
impacts and opens up new opportunities for their operations. They added
that architecture-construction, information technology and tourism will
be key sectors in 2010.

Although the national
economy is forecast to keep growing this year, Vietnamese businesses are
facing a lot of challenges, particularly, high credit interest rate and
competitiveness pressure.

Vietnam’s SMEs said the government’s supportive polices are very necessary for them to improve their competitiveness./.

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Denmark supports Vietnamese SMEs

Danish Ambassador to Vietnam John Nielsen announces the Business Sector Program whose main goal is to support Vietnamese SMEs in the private sector - Photo: Quoc Hung

HCMC - The Danish International Development Assistance (Danida) has approved the Business Sector Program in Vietnam, which will strongly benefit small and medium enterprises, especially those in the private sector.

The program will have a total budget of 123 million Danish Kroner, or about VND422 billion, and last for three years from 2011, Danish Ambassador to Vietnam John Nielsen told reporters at a press briefing in HCMC on Friday.

The program is now subject to the appraisal of the Vietnamese Government. The government-to-government agreement between the two countries is expected to be signed in December in order to allow for the program to begin in January 2011, according to the Danish embassy in a statement released at the meeting.

With the objective of strengthening the competitiveness of Vietnamese growth- and export-oriented enterprises and creating decent jobs, the ambition of the program is to help create conditions for continued strong private sector-led growth.

In particular, the program aims at strengthening innovation and adaptation of new technologies in SMEs known as component 1, supporting measures to fortify the national system of occupational safety and health in component 2, and enhancing the understanding of the SME sector through economic research in component 3.

For Component 1, the program will spend 63 million Danish Kroner to support 40 to 50 projects with an average funding of VND4 billion per project for enterprises in seven provinces, the ambassador said.

The direct target group is Vietnamese non-public enterprises providing services to small businesses or household enterprises or farmers operating in the export-oriented value chains, while the indirect target group includes small businesses, household enterprises and farmers.

The Global Competitiveness Facility (GCF) funding is expected to reduce the financial risk for Vietnamese non-public enterprises and organizations embarking on offering business services, new technologies, access to new export markets and piloting new business models.

The Ministry of Labor, Invalids and Social Affairs; the Central Institute of Economic Management and the Global Competitiveness Facility continue to be key partners of the program.

The support to improve labor protection under Component 2 will be implemented by the labor ministry through sector budget support to the National Program on Labor Protection and Occupational Safety and Health 2011-2015.

Ambassador John Nielsen says in the statement that “the strong economic performance of Vietnam over the past two decades reflects the increasing strength and buoyancy of the private sector, which is mainly made up of SMEs. The critical challenges of the next decade for Vietnam are to improve the quality of production, achieve and sustain global competitiveness and at the same time make sure that the poor are being taken along the growth path.”

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Denmark supports Vietnamese SMEs

Danish Ambassador to Vietnam John Nielsen announces the Business Sector Program whose main goal is to support Vietnamese SMEs in the private sector - Photo: Quoc Hung

HCMC - The Danish International Development Assistance (Danida) has approved the Business Sector Program in Vietnam, which will strongly benefit small and medium enterprises, especially those in the private sector.

The program will have a total budget of 123 million Danish Kroner, or about VND422 billion, and last for three years from 2011, Danish Ambassador to Vietnam John Nielsen told reporters at a press briefing in HCMC on Friday.

The program is now subject to the appraisal of the Vietnamese Government. The government-to-government agreement between the two countries is expected to be signed in December in order to allow for the program to begin in January 2011, according to the Danish embassy in a statement released at the meeting.

With the objective of strengthening the competitiveness of Vietnamese growth- and export-oriented enterprises and creating decent jobs, the ambition of the program is to help create conditions for continued strong private sector-led growth.

In particular, the program aims at strengthening innovation and adaptation of new technologies in SMEs known as component 1, supporting measures to fortify the national system of occupational safety and health in component 2, and enhancing the understanding of the SME sector through economic research in component 3.

For Component 1, the program will spend 63 million Danish Kroner to support 40 to 50 projects with an average funding of VND4 billion per project for enterprises in seven provinces, the ambassador said.

The direct target group is Vietnamese non-public enterprises providing services to small businesses or household enterprises or farmers operating in the export-oriented value chains, while the indirect target group includes small businesses, household enterprises and farmers.

The Global Competitiveness Facility (GCF) funding is expected to reduce the financial risk for Vietnamese non-public enterprises and organizations embarking on offering business services, new technologies, access to new export markets and piloting new business models.

The Ministry of Labor, Invalids and Social Affairs; the Central Institute of Economic Management and the Global Competitiveness Facility continue to be key partners of the program.

The support to improve labor protection under Component 2 will be implemented by the labor ministry through sector budget support to the National Program on Labor Protection and Occupational Safety and Health 2011-2015.

Ambassador John Nielsen says in the statement that “the strong economic performance of Vietnam over the past two decades reflects the increasing strength and buoyancy of the private sector, which is mainly made up of SMEs. The critical challenges of the next decade for Vietnam are to improve the quality of production, achieve and sustain global competitiveness and at the same time make sure that the poor are being taken along the growth path.”

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