(VEN) - Small to medium-sized enterprises in Vietnam are facing critical problems involving a lack of workspace, capital shortages and insufficient market information. In response to these issues, the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD) has constructed an information system to help businesses solve these problems.
IPSARD Director, Dr. Dang Kim Son related that in the ever-changing world of competition and globalization, businesses need the necessary knowledge and information to make effective business decisions. He asserted that cooperation between and with research and information organizations is vital to accessing such knowledge and information.
The General Secretary of the Vietnam Association of Small to Medium Enterprises (VINASME), Dr. To Hoai Nam, added that 96 percent of the 450,000 businesses currently operating in Vietnam are small to medium-sized but account for 40 percent of Vietnam's GDP and provide jobs for half of the country's workforce. While these businesses collectively play an essential role in the domestic economy, they are faced with numerous challenges primarily related to workspace, capital availability and market information.
Dr. Nguyen Do Anh Tuan, Director of IPSARD in the South of Vietnam said that computers and IT are easily graspable for farmers, particularly those in the Mekong Delta. Throughout numerous commodity production centers, farmers have discovered the benefit of information and computers. The challenge is how farmers and other producers can take technology and apply it to their work. This is what scientists are working to solve and help farmers improve production toward more modern, efficient and effective methods.
Dr. Son said that the heads of ministries normally hold direct meetings with business one or two times each year. Due to this insufficient dialogue, businesses get most of their information from the media and are unable to inform relevant officials of their problems and suggestions. Throughout much of the world, regular and consistent dialogue between businesses and policy makers is very common, but Vietnam has yet to adopt this important mentality, Dr. Son added.
Finding a solution
Dr. Son, in addition, said that IPSARD is kicking off an information system to help businesses overcome the global economic downturn and maintain until the recession ends. Via this system, ISPARD will conduct research, analyze, and forecast the farm produce market to assist rural and agricultural businesses.
Several media sources are currently providing multi-spectral information to businesses and farmers. However, Dr. Tuan insists that information accuracy and updates are very important. Farmers that grow quickly perishable produce can greatly benefit from up-to-date and accurate information about a number of factors, particularly prices.
With Canadian government assistance, IPSARD started an experimental information system for fruit and vegetable products through the Vietnam Agriculture Market Information Project (VAMIP). VAMIP also provides information about farm produce prices through the Internet and GSN messages.
Currently, there are 50 information stations with groups of farmers, cooperatives, and organizations from nine Southern provinces with access to VAMIP assistance and services.
Farmers' pricelists are available on VAMIP, and through this system, many farmers in Vinh Long and Tien Giang provinces have increased their sales by 30 percent and are selling their products at prices 30-40 percent higher than before.
Tuan said that by providing market information and production and trade organization knowledge, VAMIP helps provide farmers ideal timing through accurate and up-to-date market information to ward off situations such as surplus product resulting in falling prices.
Deputy Minister of Industry and Trade, Le Danh Vinh, said that agricultural production is spontaneous and seasonal, so surplus crops followed by falling prices happens every year. While Vietnam is a world leader in export, it is still unable to regulate the market. This is partially because of a lack of information, he remarked. Hence, information systems designed around helping agricultural businesses are vital to the development of the sector./.
By Tien Dung & Thuy Nga
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