1. SME Partnership Group meeting Friday, 19 November 2004 Mr. Nguyễn Ngọc Phúc, Director-General Agency for SME Development (MPI)

2. Outline Recent major SME support activities Recent major SME support activities Current Government’s priorities Current Government’s priorities Some highlights in donors’ SME support projects Some highlights in donors’ SME support projects Donor coordination Donor coordination

3. I. Recent SME support activities New decrees: Decree 109 on business registration and Decree 125 on the implementation of Enterprise Law in replacement for previous implementing Decrees SME Promotion Council meeting: new directions in SME promotion and Council’s performance improvement

4. I. Recent SME support activities (ctd) The Human Resource Training Support Program for SME approved by PM, budget 119 billion VND for 4 years’ implementation, implementing guideline being drafted. Further develop the organizational structure for 3 TACs

5. II. Government’s current priorities 1. SME Development Strategy – an integral part of Socio-Economic Development Plan 2006-2010: first draft of the Strategy in March 2005 and final draft to submit to Government in late May 2005 PM’s Directive 33 and PM’s vision – 500,000 enterprises by 2010

6. II. Govt current priorities (ctd) 2. Business information NBIN – preliminary database on businesses in Vietnam, computerization in business registration, consolidating and providing information to govt agencies and enterprises Currently covering only 10 out of 64 provinces  needs for support to have nation-wide coverage

7. II. Govt current priorities (ctd) 3. Technical support for SME 3 TAC in Hanoi, Danang and Ho Chi Minh city - around 10 staffs/each One JICA advisor at Hanoi TAC at the moment to help develop the structure

8. III. Highlights in donors’ SME project ADB SDPL signed (first tranche’s US$60 million), AFD’s and KfW’s cofinancing being considered. ADTA documents being drafted and start early 2005 EU VPSSP signed (9 million euro), Program Steering Committees and management structures on the way

9. III. Highlights in donors’ SME project (ctd) UNIDO’s US$ 2.4 millionTA for ASMED, SMEPC and provincial gateways started August 11 th, inception phase completed Under preparation: DANIDA’s BSPS US$ 30 million in 5 years, GTZ’s SMEP 8 million euro in 4 years – to start early next year

10. IV. Donor coordination Through SMEPG meetings – clear picutre on donor activities and support orientation ASMED hopes to have more active role in program formulation for better targeting at govt priorities

11. Thank you very much.