Hanoi, 08 March 2006 — According to a report released today by the International Finance Corporation’s Mekong Private Sector Development Facility (IFC-MPDF), targeted support for entrepreneurial and gender-specific training for women business owners and a government advisory board for women’s enterprise development could help women-owned businesses to grow and contribute even more to economic growth. These recommendations were made in a report entitled “Women Business Owners in Vietnam: A National Survey,” which summarizes the experiences and recommendations of over 500 businesswomen from across Vietnam. The report is a joint-effort between IFC-MPDF and IFC’s Gender-Entrepreneurship-Markets (IFC-GEM) initiative.
The report finds that women-owned enterprises, particularly SMEs, share many of the challenges faced by other enterprises in Vietnam: limited availability of capital, inadequate market information, ambiguous rules and regulations, and a shortage of skilled employees. More interestingly, it also reveals that women entrepreneurs confront barriers that are gender-specific. These include a lack of business and financial management training, insufficient networking opportunities, and difficulty in balancing work and family responsibilities.
Ms. Trang Nguyen, Manager of IFC-MPDF’s Business Enabling Environment Program observes, “Businesswomen in Vietnam often have many responsibilities outside of work. They raise children, care for aging parents, and contribute to their communities. Despite these additional commitments, they strive to be successful and, in the process, create jobs and contribute to economic growth. They should receive targeted government support in running and developing their businesses, as is the case in many other countries. These measures would not, as some may fear, ‘take from men to give to women,’ but instead would benefit both enterprises and the country as a whole.”
The study concludes with recommendations made by women entrepreneurs on how the government can support them. Compared to other countries in the region, Vietnam is already considered to be at the forefront of advancing women’s progress. This year the National Assembly is expected to pass a Gender Equality Law that aims to encourage women’s participation in many arenas, including the economic sphere. IFC-MPDF’s report offers the drafting committee useful insights from women entrepreneurs themselves towards the law and its implementation. According to Ms. Julie Weeks, an international expert on women’s entrepreneurship and author of the report, “while the Gender Equality Law can certainly be effective in helping female-owned businesses, Vietnam should consider a more comprehensive system that promotes development of women-owned enterprises. Other countries have developed such frameworks with successful results. The United Kingdom developed a Strategic Framework for Women’s Enterprise in 2003 that established a long-term, collaborative approach for supporting female entrepreneurs. Closer to home, South Korea issued an Act for the Assistance of Women Entrepreneurs as far back as 1999.”
When asked what specific measures might help their businesses, the women surveyed offered several recommendations. At the top of their list was women-only training in entrepreneurial and financial management skills, loan funds and government guarantees for SMEs. They also suggested a national advisory board for women’s enterprise development and programs that promote trade and networking.
Gender-specific training is particularly important, according to Ms. Weeks. “Research in other countries shows that women learn differently from men, and value the sharing and relationship-building that happens in women-centered programs. This is not a reaction to perceived or actual discrimination, but rather to the recognition that women have different learning styles and preferences from men.”
Another key finding of the survey is that associations and groups representing women business owners should be actively involved in policymaking to ensure sustainability of any reforms. Ms. Amanda Ellis, Program Manager of IFC-GEM, states, “Women business owners in Vietnam are a dynamic and positive economic force. They can provide the government with information and feedback on what policies are needed and whether or not they work. The survey results indicate women business owners in Vietnam feel there should be an official ‘home’ for information on issues relating to women’s enterprise development. This might be achieved by enhancing an existing agency or establishing a separate advisory board, as some other countries have done. Canada, for example, has a Task Force on Women Entrepreneurs that advises the Prime Minister.”
The survey of women business owners is part of a larger technical assistance program by IFC-MPDF and IFC-GEM to advance women’s opportunities within the private sector in Vietnam. The program includes an upcoming publication that features interviews with women entrepreneurs in Vietnam, international legal experts advising on the draft Gender Equality Law, and briefing sessions for National Assembly members and other officials on both the draft law and issues facing women entrepreneurs.
