Special Encouragement for the Development of Small and Medium Enterprises in the Supporting Industry

between urban and rural areas contributes to reducing the gap in development levels between these two areas.

- Using abundant labor resources - one of two important factors for growth (capital and labor) while lacking capital.

- Developing SMEs in the field of distribution and circulation of goods in rural areas contributes to promoting the development of rural markets, creating better conditions for the consumption of industrial goods.

Rural areas have abundant local raw materials available for the development of consumer industrial products, especially for the food processing industry.

Rural industry can focus on developing the following industries and products:

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- Industries that meet local consumption needs: food processing, construction materials production, metal products.

- Mechanical, repair for production and life.

- Garment, rattan and bamboo products, handicrafts.

4. Especially encourage the development of small and medium enterprises in supporting industries.

Especially encourage the development of small and medium enterprises in the supporting industry, considering this a strategic breakthrough to create a turning point in economic development in the coming years.

In terms of economics, the general principle is that large-scale, mass production is more efficient than small-scale production. However, if we consider the socio-economic efficiency and the efficiency of the entire economy in general, not just of a single enterprise or company, it is not entirely so. The market has many segments: the segment for products with large consumption quantities;

In the segment for single products, SMEs meet the needs very well suited to this second type of market.

Supporting industry is the industry that produces raw materials, accessories and components for the main industry. Supporting industry products require high specialization and are often produced on a small scale by small and medium-sized enterprises. Currently, supporting industry in our country is still in the early stages of development, weak in both quality and quantity. Therefore, to create a breakthrough development for this industry, it is necessary to have special support policies to build a strong team of small and medium-sized enterprises producing supporting industries.

5. Developing SMEs producing supporting industries in close association with large enterprises

The close relationship between small and large enterprises is reflected in the following aspects:

- Specialize in the division of labor between small and medium enterprises and large enterprises for efficiency; small and medium enterprises both create inputs and contribute to consuming the outputs of large enterprises;

- Large enterprises support SMEs to train skills, exchange information, transfer technology and management experience;

- Subcontracting to SMEs the work in large contracts that large enterprises sign with partners;

- Mutual financial support during development.

6. Research on establishing a number of small and medium-sized industrial parks and craft village industrial clusters specifically for SMEs.

Research on establishing a number of small and medium-sized industrial parks for SMEs producing supporting industries and industrial clusters for craft villages.

SMEs in craft villages. Create favorable conditions for these enterprises in terms of infrastructure: electricity, water, communications, market access, solving difficulties in production premises for SMEs at lower costs than existing concentrated industrial parks that only large enterprises can afford.

With this method, the State will easily implement preferential policies and provide appropriate support for SMEs in certain fields.

II. EXPERIENCES IN DEVELOPING SME'S IN SOME COUNTRIES IN THE WORLD

Japan, the US, and many countries that have gone before Vietnam have gone through a lot of experience in developing SMEs - these are valuable lessons for countries that follow that Vietnam can learn from.

1. Lessons learned from Japan.

The following are some lessons that have helped Japan promote the role of SMEs in economic development.

Firstly, right from the time the country emerged from the war, Japan considered SMEs as effective tools for economic reconstruction. It is no coincidence that in Japan, these types of business laws appeared very early and were continuously supplemented and perfected. Also in Japan, financial and banking institutions, providing comprehensive support for SMEs, appeared earlier than in the economic history of other countries. These agencies form a complete and reliable “social system” and are a solid foundation for the development of SMEs.

This shows that early and correct awareness of the role of SMEs in the economy is the first factor contributing to increasing the proportion of this type of enterprise in the economy and in industries.

other professions in Japan. This can be considered the first and most important lesson in developing SMEs in Vietnam.

Second, the close relationship between SMEs and large enterprises has created a unique structure in Japan's industrial structure.

- two-tier structure.

If the characteristics of the scale and scope of operations of Japanese SMEs are not much different from those of this type in other countries, then the characteristic of the close connection between SMEs and large enterprises is a prominent feature, completely different from most countries. It is the effective coordination between types of enterprises in Japan that is considered the driving force for economic development since World War II until now and is the secret to the strong vitality of Japanese enterprises in general and Japanese SMEs in particular. The coordination of types of enterprise scales under the regulation of the Government can be considered an extremely important feature of the Japanese economic model and a lesson worth studying and applying for Vietnam in its strategy of choosing its own economic structure.

Third , when talking about the success of Japanese SMEs, we cannot fail to mention the role of the Government in providing comprehensive support for these types of businesses. It can be seen that Government agencies always follow and closely follow each economic transformation process for SMEs.

In the early stages of economic reconstruction, in order to help SMEs escape from difficulties, the Government established cooperative associations to provide financial support and establish access systems for SMEs. Entering the period of high growth, due to the gap between these enterprises and large enterprises, the Government vigorously implemented rationalization measures by region, guiding the main enterprises.

modernize and rationalize the management organization with investment plans and laws to protect the interests of SMEs in fierce competition with large enterprises.

When the rapid growth process revealed contradictions, the Government adopted policies to guide SMEs to respond to changes in the industrial structure, focusing on producing high value-added products that can compete with large domestic and foreign enterprises. The policies and measures that the Japanese Government implemented for SMEs have formed a “multilateral social system” to support SMEs in asserting their role in the economy. This is also a unique feature in the development process of SMEs in Japan.

Fourth, although receiving active support from the state, Japanese SMEs always have a high spirit of independence and autonomy. One of the unique features that makes Japanese SMEs successful is their strategy of exploiting the market and finding outlets. The strength of Japanese companies is rarely shown in hot spots of competition but often in gaps and weaknesses of competitors. Wherever there is a gap in the market, the Japanese are there. They always find potential possibilities, flexibly apply market policies and create high-quality and novel goods and services, know the strengths and weaknesses of competitors, and find appropriate methods and steps in competition. In that way, Japanese enterprises have grown from small scale to become powerful corporations in the international market. The Japanese people's talented and flexible ability to detect and seize market opportunities, comprehensive quality management system and business culture - these are many valuable management lessons for businessmen around the world to study and learn.

2. Lessons on the US Government's support for SME development

When talking about success in supporting SMEs, we cannot help but mention the United States. It can be said that in the United States, policies for developing SMEs have been built and implemented very effectively and thoroughly from the central to local levels.

The US government agencies are divided into departments with different functions to support SMEs. The Bureau of Business and Economics (EB) has the role of promoting SMEs to foreign markets through negotiations to reduce trade and investment barriers, demand incentives, and protect intellectual property rights for US SMEs. Another agency is the Federal Trade Cooperation Assistance Committee, which plans strategic decisions on resources and action programs, creates highly integrated and effective international trade linkages, and organizes SME development programs.

In parallel with the above agencies, the US also established the SME Trade Advisory Committee. This committee is responsible for advising the US Government on trade policies, standards, e-commerce, trade finance, non-tariff barriers, export subsidies and rules of origin. The committee also emphasizes the importance of SMEs in trade negotiations.

In addition, the US also has awards to encourage SMEs such as the US Secretary of Commerce's award for outstanding companies. This is a form of encouragement and recognition of the role of SMEs, creating motivation for these businesses to develop.

The US also has an office to help disadvantaged SMEs. The office helps these businesses complete supply contracts with a total value of nearly 2 billion USD per year . 20 The International Trade Commission is also one of the functional agencies that effectively supports SMEs through training programs, financial support, experts, and export promotion of SMEs.

In terms of policy, the US Department of Commerce established two industrial advisory committees, one in charge of advising on issues related to the service industry, the other in charge of wholesale and retail, each with representatives of SMEs as well as industry trade associations. These two committees are responsible for collecting the results of the US government's negotiations, reviewing policy drafts, and recommending activities and directions to the government on issues related to businesses, especially SMEs. In addition, a special advisory committee for SMEs was also established to assist these enterprises with issues related to contract signing and drafting procedures, representing and making requests and proposals beneficial to SMEs at international organizations such as the OECD, and negotiations at the WTO, submitting requests and reporting the situation of SMEs to US policy-making agencies and international organizations.

The above is only a brief list of some agencies and organizations that support and develop US SMEs. But through that we can see that all issues related to SME development are of great concern to the US government and have effective guidelines, policies, solutions, and implementation tools.

III. SOME SOLUTIONS TO DEVELOP SME TO MEET THE NEEDS OF ECONOMIC DEVELOPMENT IN VIETNAM IN THE CURRENT PERIOD

1. Solutions to increase the number of SMEs in the economy

20 Wayne, 2005

First, to arouse the entrepreneurial spirit of Vietnamese people, especially of young Vietnamese people.

To stimulate entrepreneurial spirit the following measures can be taken:

- Deploy propaganda, education and dissemination activities on entrepreneurial spirit, business will and enrichment to all subjects.

- Pilot implementation of incorporating business lessons into the curriculum of high schools, universities, and vocational schools.

- Expand the scale and competitions to encourage young people to start businesses such as the competition to light up young business talents that has been held in recent years. At the same time, promote the implementation of support for business start-ups.

- Regularly organize exchanges between successful businessmen and university students and forums on business and getting rich on mass media.

Second, perfect the legal system and innovate relevant institutions to facilitate the establishment and development of small and medium enterprises.

Renewal of business registration for enterprises .

- Continue to review legal documents on business registration; continue to review and abolish unnecessary business licenses;

- Identify specific "sensitive" business lines; compile a list of conditional business lines and conditions for widespread dissemination, in order to facilitate both businesses and those doing business registration.

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