EU, German KAS Help Vietnam Improve Governance Capacity

The European Union (EU) and Germany’s Konrad Adenauer Stiftung (KAS) have co-provided EUR425,000 to help improve the governance capacity of agencies and small and medium enterprises (SMEs) in three cities of Vietnam. The project will be implemented by the Association of Cities of Vietnam (ACVN) in two years and targets the northern city of Hai Duong, the central city of Hue and the southern city of Tay Ninh, Project Manager Ngo Thi Tam said at the launching ceremony. Making up over 90% of the total number of enterprises in Vietnam, SMEs have played important roles in sustaining economic growth, reducing poverty, creating jobs in the country. However, local small firms face challenges, including a lack of relevant business training, a lack of competent technical advisors, information and technology issues and limited access to capital. Communication barriers between local governments and business sectors and the lack of supportive policy mechanisms pose further challenges to enterprises. Policy dialogues between the central government and stakeholders would be organized during the project. ACVN will lead the exchange of best practices, draw conclusions and develop national policy recommendations to contribute to the improvement of the legislative framework related to SMEs. (vietnamplus.vn Sept 14)