Vietnam’s Mekong Delta province of Tra Vinh has launched a $10.2 million project to support local small and medium enterprises (SMEs) with the majority of the finance coming from the Canadian Department of Foreign Affairs, Trade and Development. The six-year project will contribute to boosting the province’s five-year development plan to facilitate SMEs by improving infrastructure and effectiveness of administrative systems. SMEs account for more than 95% of Vietnam’s total number of companies and are one of the driving forces of economic development. However, they often find it hard to access loans to grow their business, experts said. Vietnamese SMEs will face challenges when the ASEAN Economic Community (AEC) will be born this year, experts said. Many local firms have not had brand names and strong capital source to be able to compete with foreign giants when goods will be imported to the country with zero tariff rate and loose trade barriers. The Ministry of Planning and Investment is expected to soon finish drafting a law on SMEs in its efforts to boost the development of the private sector. (saigon-gpdaily.com.vn Jan 31)
