B.E. Assessment

Creating a Conducive Policy Environment for Employment Creation in Small Enterprises in Vietnam, ILO, 2002

    Description
    This report analyses how the regulatory environment affects the growth of micro and small enterprises (MSEs) and, in turn, the generation of MSE employment in Viet Nam. It evaluates the importance of small enterprises in their role as providers of employment in both qualitative and quantitative terms and assesses the policy and legal environment for small enterprises in seven key areas: specific MSE policies; business laws and regulations; taxation; labour policy; trade; finance, credit and bankruptcy policies; and infrastructure and innovation policies. The response of Vietnamese entrepreneurs to this environment and the effect it has on their decisions as MSE owner/managers were analysed from the results of a survey conducted for this purpose.

    Summary of results
    Important reform efforts have made it easier for MSEs to register and to comply with government regulations. The enactment of a new Enterprise Law (2000) has led to a rapid increase in enterprise registrations, with positive consequences for both employment creation and job quality in MSEs. Challenges remain in the further implementation of laws and regulations at national and local levels, as well as in stimulating an appropriate environment for the provision of business development services and small enterprise associations.