ADB to sustain next segment of SME growth in Vietnam
05 Jul '06
2 min read
ADB will further support small and medium enterprise (SME) development in Viet Nam, through a technical assistance grant of US$600,000.
The grant will design an ADB investment project to develop the leasing industry, as well as to support the implementation of an ongoing ADB program.
ADB's SME Enterprise Development Program Cluster is supporting the Vietnamese Government's efforts to create an environment conducive to SME development. Actions being undertaken include addressing the country's policy framework for SMEs, institutional coordination, conducting business registration and licensing reforms, and enhancing access to resources for both land use and finance.
A first subprogram for the program was backed by a US$60 million ADB loan, approved in 2004, along with the concept for a subprogram II assisted by a $20 million loan. The investment project on leasing is in the pipeline for 2007, for another $20 million loan.
Under Subprogram I, the Government formulated an SME development action plan, and drafted business licensing reforms and SME accounting guidelines. But their implementation requires further assistance.
The TA will formulate the investment project to complement the policy actions of the Program Cluster, which aims to continue reforms to the business environment for SMEs and develop alternative channels of financial intermediation to banks. The Second Subprogram will be supported through technical support, capacity building, and coordination of stakeholders.
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