USAID project enhances linkages for SMEs in Vietnam

Aler Grubbs, director of USAID in Vietnam, stated that it has been a committed partner to Vietnamese efforts to address key challenges in economic governance, private sector competitiveness, and workforce readiness for the digital economy. The achievements that the two sides have made together through the partnership on the USAID LinkSME project will therefore serve as a foundation for enhancing the capacities of Vietnamese SMEs, facilitating trade, and creating linkages for new successes in the future.

USAID LinkSME is in the process of supporting the Office of the Government’s efforts to enhance the business enabling environment whilst reducing the cost of complying with regulatory and procedural requirements, as well as measuring progress on an annual basis.

Furthermore, the project and its implementing partner organisations are helping SMEs to improve manufacturing prowess, gain access to finance, and pursue digital transformation. This assistance is offered in close co-ordination with the Ministry of Planning and Investment.

The project has supported more than 70 studies with recommendations and guidelines which seek to enhance the implementation of a Government programme for cutting and simplifying business-related regulations during the 2020 to 2025 period, leading to 2,392 business-related regulations reduced and simplified across 194 legal documents. These efforts save enterprises’ time and compliance costs, as well as facilitating their participation in global supply chains, digital transformation, and access to finance. 

To strengthen the capacity for SMEs to sustainably become involved in global supply chains, the project has conducted pre-evaluations and screenings for 180 SMEs, comprehensive audits for 11 SMEs, as well as provided intensive technical assistance to 41 enterprises to participate in global supply chains.

Among the 318 purchase orders from lead firms resulting from the project assistance, 280 have been successfully delivered and payments made, totaling US$8.6 million. In addition, the project has enhanced the overall capacity of business support organisations in the nation in order to better support their member SMEs’ linkages with supply chains.

Deputy Minister of Planning and Investment Tran Duy Dong noted that the project represents a foundation to help SMEs and organisations to improve capacity, boosting trade, and forwarding to new successes.