Which key stimulates the dynamics of small and medium enterprises?
Innovation and internationalization are key to driving momentum for micro, small, and medium-sized enterprises while improving national productivity, according to the Asian Development Bank (ADB).
|Innovation and internationalization are key to driving the momentum of micro, small and medium enterprises.|
Increasing the dynamics of micro, small, and medium-sized enterprises with innovation and globalization, ADB experts say, is a key factor in reviving Southeast Asian economies ravaged by Covid-19 translation.
In the Asia Small and Medium Enterprise Monitoring Report (ASM) 2020 ADB Just announced, the organization considers micro, small and medium enterprises the key driving force of Southeast Asian economies, accounting for an average of 97% of all enterprises and 69% of their workforce. Southeast Asian countries in the period 2010 – 2019. This group of businesses contributes an average of 41% of the GDP of the countries in the region.
Mr. Yasuyuki Sawada, chief economist of ADB, said: “Micro, small and medium enterprises in Southeast Asian economies mainly rely on domestic market and their entrepreneurial spirit is not yet achieved. Supporting the development of these businesses, especially in the application of technology and participation in global supply chains, will contribute to inclusive growth and support recovery efforts from Covid-19 “.
Part 1 of the ASM 2020 report released today details the financial and non-financial issues facing Southeast Asia’s micro, small and medium enterprises, both at the national level. and region. It also analyzes the policies and regulations surrounding the growth of these businesses and their access to finance in each of the Southeast Asian countries.
In Vietnam, according to ADB, as of 2018, micro, small and medium enterprises accounted for 97.2% of the total number of enterprises in the country and employed 38.0% of the workforce. Micro, small and medium enterprises play a pivotal role, the growth engine of the Vietnamese economy, but they are mainly engaged in traditional trade or industries with low technology content.
Therefore, innovation and internationalization will be the key to promoting the dynamism of Vietnamese micro, small and medium enterprises; at the same time improving national productivity. According to ADB, the bank credit market of Vietnam has been expanded but the speed has slowed down since 2018, while the bank credit for micro, small and medium enterprises has grown moderately, despite the Government support measures.
Microfinance has not yet met the needs of domestic micro, small and medium enterprises. Although digital financial services (DFS) has yet to appear, the national comprehensive financial strategy through 2025, approved at the beginning of the year (January 2020), is expected to promote the development of financial services. numbers in the near future.
Recommendations from ADB experts, tAccess to finance, lack of qualified managers, and access to technology and information remain important barriers that need to be overcome to further develop micro, small and medium enterprises and the Vietnamese economy. Male in general.