Business associations can play an important role in the development of the private sector by representing business interests and providing support for their individual members. This report was undertaken by MPDF and the Asia Foundation to identify and evaluate the main characteristics of such associations in Vietnam, as well as to analyze the role they play in supporting private sector businesses.
Vietnam’s 200 business associations appeared successful at providing their members with information on policies and legal issues, making policy/legal recommendations on their behalf, and providing short-term training courses. The study found they were doing less well at providing technical advice, information on markets, and assistance accessing domestic or export markets. While members wanted more professional quality business services, the associations’ ability to meet these demands were hampered by a lack of regular funds, well-trained full-time staff and a clear, legal framework.
The researchers suggested that the associations “professionalize” their activities and tailor their core products and services to meet their members’ most urgent needs. They urged associations to prioritize fundraising and the collection of dues and service fees in order to have a stable source of income with which to better plan activities, and to seek out short-term financial and technical assistance from international organizations such as MPDF and the Asia Foundation. The Government was encouraged to make the input of business associations an integral part of its economic policy and law-making process, and to improve the regulatory environment so that these associations can become established and effective. In return, business associations could take on much of the government’s responsibilities for promoting SME development. Because they are not-for-profit, business associations can offer many business services at an affordable price to their members, fulfilling a much-needed role.
August 2002
Full report English 
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