Vietnam to Have 500,000 SMEs by 2010

Vietnam to Have 500,000 SMEs by 2010

Vietnam will have some 500,000 small and medium-sized enterprises (SMEs) by 2010, according to a plan prepared by the Ministry of Planning & Investment under the assistance of the UN Industrial Development Organisation (UNIDO).

According to the plan, which is part of the master socio-economic development plan for the 2006-10 period, SMEs will see an average annual export revenue growth of 10-15 per cent from now to 2010.

"SMEs now play a more important role in the economic development in Vietnam in the face of international economic integration, especially when the country is in the middle of the process to turn into a market economy," said Deputy Minister of Planning & Investment Nguyen Bich Dat.

According to the ministry's statistical figures, the investment growth of the local private sector increased from 22.6 per cent in 2001 to 28.7 per cent in 2004. The sector has annually provided 1.5 million new jobs. The annual industrial production growth of local SMEs grew from 11 per cent in 1999 to 18.3 per cent in 2000.

The plan, which is also aimed at improving the competitiveness of local SMEs, is expected to offer preferential treatment to facilitate the development of the enterprises. The plan will be submitted to the Government in mid-2005.
(Investment)