US$40 million more for SME supporting reforms

HCMC – The Asian Development Bank (ADB) is supplementing a US$40 million loan to an earlier reform program helping to untangle a knot of red tape for doing business simpler and quicker for small and medium-sized enterprises (SMEs).

ADB’s board of directors on Monday approved the loan for the first phase of the Second Small and Medium-Sized Enterprises Development Program, the bank said in a statement.

The supplementation follows an earlier ADB loan for an initial reform program helping to slash the time needed to register a business, and support a sharp rise in new enterprises and private sector jobs. SMEs make up a large majority of all registered enterprises in Vietnam and most new jobs in the last decade were generated by the sector.  

“The priority for the Government of Vietnam is to sustain high economic growth to create productive jobs for around 1.7 million new workers each year, and growing SMEs is an essential part of its development strategy,” Edimon Ginting, senior economist in ADB’s Southeast Asia Department, said in the statement.  

Despite the strong progress over the past four years, difficulties in businesses’ accessing medium-term capital as well as some ongoing regulatory issues have slowed down the registration of new SMEs and the expansion of existing ones. Meanwhile, economic overheating and the global financial crisis have created further challenges for local enterprises.  

The release of funds for the latest program follows the achievement of key reform milestones by the government. These include steps to develop a comprehensive policy to address constraints to trade and competition, as well as measures to simplify and streamline business procedures, the introduction of a pilot e-customs program in 10 provinces, and the introduction of a web-based national business registration system. The Government has introduced a nationwide credit guarantee system to support commercial banks lending to SMEs.  

The latest loan from ADB’s concessional Asian Development Fund has a 24-year term including a grace period of 8 years, with an annual interest charge of 1%, rising to 1.5% for the balance of the term.

A second phase of the program will provide support to continue reforms to improve business competitiveness, and access to finance for SMEs.  

The Ministry of Planning and Investment is the executing agency for the full program with the target completion date yet to be finalized.

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GBA calls for members to take on green program

HCMC - The German Business Association (GBA) in Vietnam said on Tuesday it is working with the World Wide Fund for Nature Vietnam (WWF Vietnam) to support and promote the WWF Green Office program to all of its member firms.

This announcement came less than two months after Tanner Vietnam Ltd. was given the WWF Green Office certificate for its successful implementation of an environmental management plan in the workplace. The German business is committed to environmental protection by developing a staff-rewards program for the best employees in green practices.

The company specializing in professional technical documentation has taken proactive actions to cut consumption of electricity by 16%, paper by up to 50% and water by 12%, as well as has more staff using green transportation means to work.

Tanner Vietnam is one of the members of the GBA in Vietnam, whose membership is more than 160. The GBA said it was the first business association in Vietnam to support the WWF Green Office program publicly.

Alexander Bischoff, chairman of the GBA in Vietnam, said support for the program would improve environmental awareness and energy savings amongst and beyond the association’s member corporations.

“Protecting the environment, especially in Vietnam, is no longer a private task but a responsibility for all the society, and therefore its corporations and businesses,” Bischoff said in a statement.

Bischoff quoted the World Bank’s calculations as saying that Vietnam may incur a loss of up to 5.5% of gross domestic product due to environmental pollution and wasted energy each year, and has to spend around US$780 million yearly on community health problems aggravated by pollution-induced diseases.

Bischoff noted some GBA member corporations had succeeded in operating as WWF Green Offices by reducing their consumption of electricity, paper and water remarkably and encouraging their staff to use sustainable transport to commute to work.

“This shows that the WWF Green Office program benefits the corporations, while at the same time creates environmental awareness amongst employees, who transfer their knowledge into their homes, and to family and friends,” Bischoff said.

WWF Vietnam Green Office Coordinator Tabitha Carvan said many GBA member corporations and other business community members would make a difference to the environment in Vietnam.

Initiated by WWF Finland in 1997, the WWF Green Office program helps businesses and other organizations make simple but practical changes to their office environment and to employees’ behaviors to contribute to mitigating the effects of climate change.

Current Green Office Vietnam members include the Finnish embassy, the British embassy and consulate general, and four companies – Tanner Vietnam, Conforama, OUT-2 Design and Toyota Motors Vietnam.

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GBA calls for members to take on green program

HCMC - The German Business Association (GBA) in Vietnam said on Tuesday it is working with the World Wide Fund for Nature Vietnam (WWF Vietnam) to support and promote the WWF Green Office program to all of its member firms.

This announcement came less than two months after Tanner Vietnam Ltd. was given the WWF Green Office certificate for its successful implementation of an environmental management plan in the workplace. The German business is committed to environmental protection by developing a staff-rewards program for the best employees in green practices.

The company specializing in professional technical documentation has taken proactive actions to cut consumption of electricity by 16%, paper by up to 50% and water by 12%, as well as has more staff using green transportation means to work.

Tanner Vietnam is one of the members of the GBA in Vietnam, whose membership is more than 160. The GBA said it was the first business association in Vietnam to support the WWF Green Office program publicly.

Alexander Bischoff, chairman of the GBA in Vietnam, said support for the program would improve environmental awareness and energy savings amongst and beyond the association’s member corporations.

“Protecting the environment, especially in Vietnam, is no longer a private task but a responsibility for all the society, and therefore its corporations and businesses,” Bischoff said in a statement.

Bischoff quoted the World Bank’s calculations as saying that Vietnam may incur a loss of up to 5.5% of gross domestic product due to environmental pollution and wasted energy each year, and has to spend around US$780 million yearly on community health problems aggravated by pollution-induced diseases.

Bischoff noted some GBA member corporations had succeeded in operating as WWF Green Offices by reducing their consumption of electricity, paper and water remarkably and encouraging their staff to use sustainable transport to commute to work.

“This shows that the WWF Green Office program benefits the corporations, while at the same time creates environmental awareness amongst employees, who transfer their knowledge into their homes, and to family and friends,” Bischoff said.

WWF Vietnam Green Office Coordinator Tabitha Carvan said many GBA member corporations and other business community members would make a difference to the environment in Vietnam.

Initiated by WWF Finland in 1997, the WWF Green Office program helps businesses and other organizations make simple but practical changes to their office environment and to employees’ behaviors to contribute to mitigating the effects of climate change.

Current Green Office Vietnam members include the Finnish embassy, the British embassy and consulate general, and four companies – Tanner Vietnam, Conforama, OUT-2 Design and Toyota Motors Vietnam.

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Green Awareness Of Staff Is The Utmost Reward

On September 11, the seventh annual Green Day program will start at all six facilities of Victoria Hotels & Resorts in Vietnam and Cambodia, asserting its strong commitment to environment protection besides business. Eric Simard, managing director of Victoria Hotels & Resorts, has a talk with the Weekly about the program. Excerpts:

Q: Victoria Hotels & Resorts is going to organize the 7th annual Green Day Program at its facilities in Vietnam and Cambodia. What are some important points of the program this year?

A: As usual, our properties will work with local volunteers and authorities to launch various green activities. Victoria Sapa Resort & Spa will organize a clean-up around Sapa Lake, the stadium, the central square and tourist spots around the city such as Ta Van, Lao Chai and Cat Cat. Victoria staff will work alongside local school children, who are mostly from minority hill tribes, with the participation from local authorities and partners.

Along Vietnam’s coastline, Victoria Phan Thiet Beach Resort & Spa will divide the clean-up into two areas, the main road and the beach. The resort expects around 350 participants including the pupils of Phu Hai School, the youth and women organizations of Phu Hai Ward, and 150 Victoria staff. Meanwhile, Victoria Hoi An Beach Resort & Spa will be cleaning the streets, the river and beach areas with the help of Hoi An Eco Tour.

In the Mekong Delta, with the help of students from Thu Khoa Huan Secondary School, local residents and volunteers, Victoria Chau Doc Hotel is organizing a clean-up of Sam Mountain. Some 120km away, Victoria Can Tho Resort will be picking up garbage from the Hau River with the participation from hotel staff as well as Can Tho University and Can Tho Tourism College.

In the neighboring country of Cambodia, Victoria Angkor Spa & Resort will organize a clean-up along the river in Siem Reap as the hotel wishes to promote environmental consciousness among the local community.

It can be said that Victoria has organized the Green Day program successfully in the past six years. Why did the Victoria decide to organize the program annually from the onset?

As Victoria is possibly the pioneering international group of hotels to be established in these remote locations in Vietnam, the company felt responsible to inculcate environmental consciousness at early stages so that future generations can continue to enjoy these beautiful destinations in pristine conditions.

And needless to mention, such efforts can only be successful with the support from our dedicated team of local staff, provincial authorities, schools and various institutions.

Which are the most significant achievements the Victoria has made in past years from the Green Day program?

Apart from the numerous local and international awards our hotels has received for our green efforts, the most rewarding achievement is to see our local team of staff conscientiously being green every day within the hotel as well as in their own homes.

What are the real values of the meaningful program?

The ultimate purpose is to provide sustainable tourism in our destinations for future generations to enjoy. We have seen the negative impact of tourism development in many countries, and as more and more local communities become dependent on the tourism industry for their livelihood, it is crucial that we take the leading step in setting the perfect example in spreading the green message.

Personally, which is your most impressive memory about the program?

My most impressive moment was the Green Day event organized at Victoria Sapa three years ago as we worked with 1,500 pupils from 12 different schools from various remote villages. It took over two months of preparation with the school teachers for this large-scale cleaning-up event.

We had to supervise the children carefully to ensure they do not pick up any dangerous items such as sharp objects or broken bottles. It was particularly significant to me that we were able to participate in such an educational program on the importance of preserving the ecology systems within the northern mountainous region.

What will Victoria Hotels & Resorts do to strengthen its sustainable development in Vietnam?

We will ensure that all of our renovation and refurbishment within existing properties will take green measures as top priority, and we will also constantly seek improvement in implementing more green policies.

Each of our properties has an appointed Green Committee which consists of all leading department heads, and periodic meetings are held to ensure green initiatives are followed through.

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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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