Detailed support policies are needed to promote the development of social enterprises (Photo: thoibaonganhang.vn)Hanoi (VNS/VNA) - Detailed supportpolicies are needed to help develop social enterprises, experts have said.
Nguyen Thi Minh Thao, head of BusinessEnvironment and Competitiveness Research Department under the Central Institutefor Economic Management (CIEM), said that Vietnam had a number of supportpolicies for social enterprises. However, most were too general and it wasdifficult for social enterprises to benefit from them.
“There are already support policies. But theymust be made more detailed,” Thao stressed.
She pointed the six biggest difficulties forsocial enterprises: access to capital, talent, markets, corporate governance,administrative procedures and society’s low awareness about the importance ofsocial enterprises.
A survey carried out by CIEM andnon-governmental and non-profit organisation Centre For Social Initiatives in HoaBinh and Lao Cai – two poor northwestern mountainous provinces – found thatsocial enterprises were encountering various difficulties, such as small scaleand limited competitiveness.
In Hoa Binh, only 10 of 14 social enterprises couldaccess banking credit. In Lao Cai, it was 16 out of 22. In addition, theircredit limits remained modest and interest rates high.
Tan Thi Su, director of a social enterpriseoperating in tourism in Sa Pa, said it was difficult for her company to borrowmoney from banks. Her company was provided with a modest loan of 50 million VND(2,100 USD), she said.
Su said that it was necessary to establish aboard at district or provincial levels to consult small- and medium-sizedenterprises, especially social enterprises.
Social enterprises also need credit incentivepolicies and corporate governance training to help them overcome difficultiesand operate efficiently, Su said.
Agreeing with Su, Phan Duc Hieu, CIEM’s DeputyDirector, that it was vital to deregulate business laws to create favourableconditions for firms like Su’s to develop.
According to Thao, the Law on Enterprise shouldclarify standards for an enterprise being social.
Nguyen Trung Kien, from the Institute of Policyand Strategy for Agriculture and Rural Development, said social enterprisesshould be allowed to participate in supplying public goods and services toimpoverished areas.
Social enterprises’ role in promoting linkswith small business households should also be promoted, Kien stressed.
Social enterprises were officially regulated inthe Law on Enterprise 2014 but this type of business already existed for abouta decade in Vietnam and account for about 4 percent of all firms in Vietnam.-VNS/VNA
Nguyen Thi Minh Thao, head of BusinessEnvironment and Competitiveness Research Department under the Central Institutefor Economic Management (CIEM), said that Vietnam had a number of supportpolicies for social enterprises. However, most were too general and it wasdifficult for social enterprises to benefit from them.
“There are already support policies. But theymust be made more detailed,” Thao stressed.
She pointed the six biggest difficulties forsocial enterprises: access to capital, talent, markets, corporate governance,administrative procedures and society’s low awareness about the importance ofsocial enterprises.
A survey carried out by CIEM andnon-governmental and non-profit organisation Centre For Social Initiatives in HoaBinh and Lao Cai – two poor northwestern mountainous provinces – found thatsocial enterprises were encountering various difficulties, such as small scaleand limited competitiveness.
In Hoa Binh, only 10 of 14 social enterprises couldaccess banking credit. In Lao Cai, it was 16 out of 22. In addition, theircredit limits remained modest and interest rates high.
Tan Thi Su, director of a social enterpriseoperating in tourism in Sa Pa, said it was difficult for her company to borrowmoney from banks. Her company was provided with a modest loan of 50 million VND(2,100 USD), she said.
Su said that it was necessary to establish aboard at district or provincial levels to consult small- and medium-sizedenterprises, especially social enterprises.
Social enterprises also need credit incentivepolicies and corporate governance training to help them overcome difficultiesand operate efficiently, Su said.
Agreeing with Su, Phan Duc Hieu, CIEM’s DeputyDirector, that it was vital to deregulate business laws to create favourableconditions for firms like Su’s to develop.
According to Thao, the Law on Enterprise shouldclarify standards for an enterprise being social.
Nguyen Trung Kien, from the Institute of Policyand Strategy for Agriculture and Rural Development, said social enterprisesshould be allowed to participate in supplying public goods and services toimpoverished areas.
Social enterprises’ role in promoting linkswith small business households should also be promoted, Kien stressed.
Social enterprises were officially regulated inthe Law on Enterprise 2014 but this type of business already existed for abouta decade in Vietnam and account for about 4 percent of all firms in Vietnam.-VNS/VNA
VNA
