B.E. Assessment

The Enabling Environment for Business Services in Viet Nam, GTZ 2003

    The GTZ SME Promotion Project conducted a study of the policy and legal environment for business services, between June 2002 and November 2003, in partnership with local and international partners. In a preliminary study, policies relating to nine services were reviewed. A subsequent, more detailed study covered Intellectual Property Services, Accounting and Auditing Services, and Training Services.

    These services were selected for in-depth study based on the: i) interest of local BDS facilitators in promoting change in the service markets; (ii) severity of legal constraints to the development of the service market; (iii) importance of the service market to SMEs; and (iv) feasibility of legal proposals/ recommendations for change to be implemented.

    Methods for info gathering
    Desk study, field survey, in-depth interviews, focus group discussions, key informant interviews

    Summary of results
    As a whole, business service markets have benefited from the Enterprise Law and more liberal economic policies of the government. However, the inadequate implementation of the Enterprise Law has had adverse effects on some business service markets. Some local level laws and regulations restrict the entry of business service providers into the market and restrain the operation of those already in the market. Some important subordinate legal documents of the Enterprise Law have not yet been completed. The Law on Bankruptcy, issued in 1993, has not kept pace with economic development. A Decree on consulting services requires consultants to practice via certain consulting organizations/enterprises and contains stipulations that contradict the spirit of the Enterprise Law. While the National Assembly has issued the Law on Domestic Investment Promotion and Government has issued a Decree setting forth a number of measures for promotion of business in general and SMEs in particular, there remains a shortage of legislation in support of commercial business service provision.

    Associated Activities and Documents
    »Advocacy for a better Enabling Environment for Business Services in Viet Nam, GTZ 2004-5