Financing sources in Vietnam Essay Example | Topics and Well Written Essays - 4250 words

Financing sources in Vietnam - Essay ExampleSuch policy reforms surrender proved beneficial with regard to qina, Malaysia, Indonesia and Thailand. These countries have also benefitted from network associations, cluster linkage to markets, and novel back up arrangements. Policy support has been established as being crucial for the growth of SMEs in Vietnam. B. subscriber line Support Services Privatisation emerged as a strategy for restructuring the large state owned enterprises (SOEs) into SMEs (Gibb and Lyapunov, 1996). A solution that is at variance to this initiative has been proposed by McIntyre (2002). This mapping states that the dismantling of large firms may fail to promote the growth of SMEs. This notion has been vindicated in Asia, and this can be attributed to the lack of a suitable support regime. For instance, the Chinese SMEs require the support of the large firms. Dallago and McIntyre (2003) have cited the experiences of the CEE nations to show that by themselves, the SMEs do not have the capacity to grow. The presence of institutions and supporting mechanisms that have been flop developed is indispensable for the growth of these SMEs. C. Supporting Infrastructures It has been proposed by Wattanapruttipaisan (2002) that competitiveness can be rendered not only by natural resources and location, but also by contemporary global information and knowledge. It can also be promoted by participation in clusters involving firms, supplier net whole kit, or producers and matching products consumers and distributors continuous learning and compound flexibility and efficiency. The SMEs were furnished with a new information flow and knowledge base, due to network association. This base has the capacity to emerge as a momentous model for efficient resource distribution, via policy measures emanating from the market and the state. Support of the Government in Vietnamese SME Development It was recognised, during the projects conceptualisation in the cate gory 1994 that the furtherance of SMEs had to be ensured. However, a comprehensive document that described the procedures to be adopted by the Government, in order to support SMEs was conspicuous by its absence. Subsequently, the accomplishments and the works supported by the project had been viewed keenly in the highest echelons. Towards the end of the year 1998 a comprehensive assessment was conducted, which disclosed that the project had significantly affected handling and formulation of the policy related to SMEs. The Central Institute of Economic Management (CIEM), in February 1997, reviewed the administrative and legal situation in Hanoi and Ho Chi Minh City (HCMC). The emphasis was upon identifying the impediments to the formation and development of SMEs and the provision of recommendations to the Government. The CIEM, true to its calling of being an important entity in drafting policy pertaining to business, compiled and examined most of the documentation relating to the es tablishment, act and dissolution of business. It also conducted panoptic interviews with SMEs, and central and local policy making agencies. In January 1998, the stakeholders completed the twin tasks of discussion and validation, and this was due to the workshops in HCMC and Hanoi. The recommendations of this report, in the circumstance of an