Huynh Van Minh, president of the HCM City Entrepreneurs Association, wants to encourage major Vietnamese companies, both private and state-owned, to do more business with domestic smaller companies.
“One way in which this could be accomplished is by requiring a certain level of purchases of goods and services by these larger companies be from smaller businesses,” Mr Minh told delegates at the conference.
“There are also goods and services that smaller companies cannot deliver, or they are of poor quality, which consequently put them at a disadvantage without more governmental support.”
Small and medium sized companies currently account for 40% of the nation’s GDP, said Mr Minh, and unless changes in the competition law are enacted this percentage is like to drop as more foreign competitors enter the market.
Mr Minh said the formation of the AEC and signing of other free trade agreements has brought about a heightened sense of the awareness of the need to support small business as they transition to a more competitive local marketplace.
“One of the most pressing areas where small and medium sized companies need support is with access to working capital bank loans and longer term loans to finance investment in improved technologies,” said La Thi Lan, director of Tien Loc Investment JSC.