USAID project intensifies linkages for SMEs in Vietnam

LInkSME project has helped to improve business climate, enhanced competitiveness capacity of local SMEs. (Photo: VNA)

Over the past time, the US Agency For International Development (USAID) Linksages for Small and Medium Enterprises (LinkSME) project has significantly supported the Vietnamese Government in researching, reviewing and popularising mechanisims to improve business climate, thus enhancing competitiveness capacity of local SMEs.

Aler Grubbs, Director of USAID in Vietnam, said it has been a committed partner in Vietnam’s effort to address its key challenges in economic governance, private sector competitiveness, and workforce readiness for the digital economy. The achievements that the two sides have made together through the partnership on the USAID LinkSME project will serve as a foundation for enhancing the capacities of Vietnam’s SMEs, facilitating trade, and creating linkages for new successes in the future.

USAID LinkSME is supporting the Office of the Government’s efforts to enhance the business enabling environment and reduce the cost of complying with regulatory and procedural requirements, measuring progress on an annual basis.

Further, the project and its implementing partner organisations are helping SMEs to improve manufacturing prowess, gain access to finance, and pursue digital transformation. This assistance is offered in close coordination with the Ministry of Planning and Investment.

The project has supported more than 70 studies with recommendations and guidelines to enhance the implementation of a Government programme for cutting and simplifying business-related regulations during the 2020 - 2025 period, leading to 2,392 business-related regulations reduced and simplified across 194 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.

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 the 318 purchase orders from lead firms resulting from the project assistance, 280 have been successfully delivered and payments made, totaling 8.6 million USD. In addition, the project has enhanced the capacity of business support organisations in Vietnam to better support their member SMEs’ linkages with supply chains.

Deputy Minister of Planning and Investment Tran Duy Dong said the project is a foundation to help SMEs and organisations to improve capacity, bolstering trade, forwarding to new successes./.