U.S. helps Viet Nam Improve Business Environment, Private Sector Competitiveness

9:12:48 AM | 8/7/2023

A ceremony took place on August 4 to celebrate achievements in improving the business environment and enhancing the competitiveness of Vietnamese small and medium enterprises (SMEs) through the USAID Linkages for Small and Medium Enterprises (LinkSME) project.

USAID Mission Director Aler Grubbs delivers her remarks, Ha Noi, August 4, 2023

The event was held in Ha Noi and attended by USAID Mission Director Aler Grubbs, Deputy Chairman of the Office of the Government Nguyen Sy Hiep, and representatives of relevant government agencies, business support organizations (BSOs), and the business community.

Addressing the event, USAID Mission Director Aler Grubbs said that USAID has been a committed partner in Viet Nam's effort to address its key challenges in economic governance, private sector competitiveness, and workforce readiness for the digital economy.

"The achievements that we have made together through our partnership on the USAID LinkSME project will serve as the foundation for enhancing the capacities of Viet Nam's SMEs and BSOs, facilitating trade, and creating linkages for new successes in the future," she added.

Since 2018, the USAID LinkSME project has assisted ministries and organizations in continuing to reduce and simplify business-related regulations, strengthen administrative reform, and improve one-stop-shop (OSS) and inter-agency OSS mechanisms for handling administrative procedures.

As an example, the project has supported more than 70 studies with recommendations and guidelines to enhance the implementation of Resolution 68/NQ-CP, a Government of Viet Nam program for cutting and simplifying business-related regulations during the 2020 to 2025 period, leading to 2,352 business-related regulations reduced and simplified across 191 legal documents.

These efforts save enterprises' time and compliance costs as well as facilitate their participation in global supply chains, digital transformation, and access to finance. 

Through the LinkSME project, USAID has supported the Government of Viet Nam with many studies, reviews, and recommendations to foster business regulation reforms, improve the business environment and increase the competitiveness of Vietnamese SMEs, said Deputy Chairman of the Office of the Government Nguyen Sy Hiep. 

To enhance the capacity for SMEs to sustainably participate in global supply chains, the project has conducted pre-evaluations and screenings for 180 SMEs, comprehensive audits for 11 SMEs, and provided intensive technical assistance to 41 enterprises to participate in global supply chains.

Among 318 purchase orders from lead firms resulting from the project assistance, 280 orders have been successfully delivered and payments made, totaling US$8.6 million.

In addition, the project has enhanced the capacity of business support organizations in Viet Nam to better support their member SMEs' linkages with supply chains.

Source: VGP