VIETNAM GOVT STEPS UP MODERNISATION OF SMEs.

HANOI, April 1 Asia Pulse - The Vietnamese government has pledged to expedite the modernisation of small and medium enterprises (SMEs) as part of efforts to expand State economic management activities.

In an announcement, state officials outlined plans to establish a council that will oversee and encourage various SME development activities, in the release of Decree 90/2001/ND-CP.

The newly-formed council will develop concrete programmes and targets, help identify domestic and export markets, and provide technical assistance and training centres.

The council will comprise representatives from key industries; the Peoples' Committees of Hanoi, HCM City, Hai Phong and Da Nang; the Vietnam Chamber of Commerce and Industry, the Co-operative Alliance; and economic, scientific, technological and training experts.

The new decree also mandates that each Vietnamese SME should have registered capital lower than VND10 billion (US$667,000), and 300 workers or less.

At a recent international conference on labour, economists estimated that SMEs operate optimally with between 100 to 499 workers directly engaged in production and business activities.

The modernisation paths taken by developed and developing countries world-wide reveal the important role that SMEs play in national economic development.