Nam dinh small and medium sized enterprise association

Nam Dinh Small andMedium-sized Enterprise Association Bởi: The Online Management Training Company Nam Dinh Small and Medium-sized Enterprise Association Incorporating to serve members Ba

Nam Dinh Small and

Medium-sized Enterprise

Association

Bởi:

The Online Management Training Company

Nam Dinh Small and Medium-sized Enterprise Association

Incorporating to serve members

Background

Nam Dinh is an agricultural province in the south of the Red River Delta It has a population of about 2 million Currently, there are about 2,000 enterprises in operation Some are large ‘equitized’ state firms but most are small and medium-sized enterprises

in agricultural production, small scale metalwork, handicrafts, garments and textiles Nam Dinh was once centre of the textile industry during the subsidy era, but when subsidies ended the province suffered serious unemployment and the social problems that come with it

From 2001 to 2004 GDP was 7.3%, much lower than the average in the Delta (10.5%), and Nam Dinh ranked second lowest (above Thai Binh) It was also near the bottom of GDP, at VND 4.47 million per year

Yet despite this, private enterprise has grown 27.9% on average since 2001 while state sector growth has been just 14.2% In 2001, local enterprises partnered with the Nam Dinh Urban Development Project and the Swiss Agency for Development and Cooperation (SDC) to found the Nam Dinh Private Enterprise Association Just

58 businesses joined at first and growth remained sluggish due to limited resources; members repeatedly cited a need for greater coordination So on April 24th, 2006, the Nam Dinh Small and Medium Enterprise Association (NADISME) was established

as a result of non-stop lobbying and encouraging of businesses and local authorities The Association fosters cooperation networking and mutual support It also improves efficiency, protects the legal rights of members, connects SMEs with government

authorities, improves business policy and fosters deeper integration into the international economy

Member services

NADISME offers support and consulting services for SMEs With support from SDC/ Nam Dinh Urban Development Project, the Association has conducted a number of trainings on business law, preparation for WTO membership, production management, marketing and best practices It has also bridged the public and private sector In 2006, NADISME brought together the provincial Department of Planning and Investment, Department of Taxation, Department of Natural Resources and Environment, as well as other agencies to meet with the business community The dialogue provided a platform for free and direct communication with policymakers

Corporate responsibility is another of the Association’s strong points and members have organized trainings for disabled entrepreneurs to exchange information and raise awareness of government policy And with the support of the Nam Dinh Urban Development Project, NADISME also posts vital information on www.nadisme.org.vn, although the site is yet to be finished

But while trade promotion and business linkage are core elements in the group’s charter, members have yet to implement them formally Currently, these issues are addressed mostly by the entrepreneurs themselves without any active support from the Association

Fact Sheet

Name of

association: Nam Dinh Small and Medium-sized Enterprise Association

Year of

establishment June 24, 2006

Number of

members Over 325 businesses2 district branches

Type of

organization General Business Association

Term of

General

Meeting

5 years Organization

and staffing: Executive Board: 1 Chairman, 4 Vice Chairmen, 13 commissioners

Provided

- Protection of the legal interests of its members.- Proposal and recommendation for policies.- Dialogue between businesses and local authorities.- Training on business management topics.-Business consultancy on business establishment and restructuring Services and

Facilities Business Development Consulting Company

Line

Membership Vietnam SME Association

Representative Mr Tran Manh Luu, Chairman

Contact

Address: No 172 Han Thuyen St, Nam Dinh CityTel:

0350.647890 Fax: 0350.647890 Webstie:

http://www.namdinhsme.org.vn

Turning points

At its inception, NADISME found that it needed an operating budget But member dues were insufficient, so it established a business consulting company This was a joint-stock company offering consultancy, training, and health services for businesses In the future it will focus on health care, offering medical check-ups and health insurance

It will also open a clinic for member staff and monitor their health This sort of onsite service has proven to be more affordable and convenient, and it meets WTO requirements on corporate responsibility

The Association also provides the other following services:

• Supports establishment of new businesses (drafts company charter, business registration, tax registration, and official stamp)

• Trainings on selected management topics as requested by clients

• Health care services for workers in factories, regular health check-ups, health insurance, emergency

•

To date, the company has been successful There are more clients seeking services This helps build trust in the Association while guaranteeing an income to finance operations

Human resources and local government support are the strongest points for NADISME

A former governor of the State Bank (now chairman of the Vietnam Association of Businesspeople) has endorsed it The group has also won favor with the Alliance

of Cooperatives, the Department of Taxation, the Department of Natural Resources and Environment, and especially the Department of Planning and Investment It has now established sub-associations in three districts and one member has been honored

among 100 typical enterprises receiving the Thanh Giong Cup And at the lower level, NADISME has helped members explore more efficient use of materials, helping enterprises in Hai Hau District re-process waste materials from the production of mushrooms for cooking and medicinal purposes

Lessons learned

• Public relations are still weak for NADISME and the group has just established

a website to promote itself, although the site is yet to be completed Members have cited a need for more interesting articles and enhanced advertising The Association also needs to cultivate a deeper relationship with newspapers

• Membership meanwhile, is, at 325, modest for a provincial level organization

in an area with more than 2,000 businesses Most current members are situated

in the city or around district townships and efforts to reach remote and isolated areas containing more enterprises could be stepped up Within the first six months of 2007, the Association enrolled only 20 members due almost entirely

to personal encouragement by the chairman

• With the support of the government and donor projects and with earnings from services, the Association can maintain and expand its programs, but human capacity and strategic development remain questions