Deputy PM urges SMEs to make innovations

Friday, Mar 24, 2023 08:40

Workers in Dai Dung Mechanical Electrical JSC's factory in HCM City. The Government would improve policies and raise solutions to support enterprises. — VNA/VNS Photo

Deputy Prime Minister Le Minh Khai has called on small- and medium-sized enterprises (SMEs) to modernise their production and business models and expedite restructuring efforts following the emerging trends of the green economy, digital economy, and circular economy.

Khai emphasised during his address at the Viet Nam Small and Medium Enterprises (VINASME) event on Thursday that the primary objective should be to drive innovation and boost brand competitiveness.

The conference was attended by almost 400 representatives from the association's over 64,000 members nationwide.

Highlighting the important role of enterprises in promoting economic prosperity and development, Khai said that the business community in Viet Nam developed strongly in recent years, with nearly 900,000 firms, over 25,000 cooperatives and five million business households in operation.

The business community contributed around 60 per cent to the gross domestic product (GDP) and provided jobs for around 30 per cent of the workforce.

SMEs account for 97 per cent of the total number of firms in Viet Nam had made important contributions to economic growth, especially in maintaining and developing production and business, creating jobs, stabilising people’s lives and promoting growth, Khai said.

However, he pointed out that there were limitations in corporate governance, the application of science and technology and the linkage between SMEs.

He pointed out that the unpredictable global economy development coupled with the shift in the global value chain and the trend toward sustainability, global minimum tax issues, and new requirements about green development and climate change adaptation pointed SMEs to new challenges.

Sharing businesses’ difficulties and challenges, Khai said that the Government would improve policies and raise solutions to support enterprises, especially creating the most favourable business and investment environment.

The focus should be placed on accelerating the national digital transformation and promoting the development of private enterprises, especially in the fields of manufacturing, high technology, information and technology to establish domestic and international value chains, Khai said.

He urged VNSME to continue to raise specific solutions to accompany the Government and relevant ministries, agencies and localities to support SMEs to overcome difficulties and promote recovery and growth.

The association should strengthen the role of being a bridge to advocate policies, maintain dialogues with management agencies and enhance relationships with foreign organisations in policy advocacy for SMEs, Khai said.

He urged the association to be more proactive in studying challenges and opportunities from emerging business models, especially the requirements for sustainable development and green business and provide policy updates and guidance to member businesses and industries.

SMEs should strive to overcome difficulties and challenges and develop specific solutions to expand the scale and improve competitiveness.

“It is important that SMEs strengthen cooperation to create synergy and lift the position of Vietnamese enterprises,” Khai said.

The association’s fourth executive committee was selected at the meeting with 84 members. Nguyen Van Than would remain President of the association for the 2023-28 term. — VNS

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