Description

Small and medium-sized enterprises (SMEs) played a major role in Viet Nam’s development efforts. Although state-owned enterprises accounted for a substantial share of the economy, market-oriented reforms encouraged the growth of private enterprises. The traditional SME development approach, which aimed to fill SMEs' funding and technical gaps by providing subsidized credit or services, achieved mixed results in Viet Nam. In view of these, there was a shift in focus toward creating an enabling business environment for SMEs. However, various key policies, legal, and institutional frameworks supporting efficient and effective business operations were yet to be established or completed at that time. There was also a policy bias favoring public sector entities.

To address these, the government requested ADB to fund a program loan as ADB’s first policy loan to Viet Nam to foster an enabling environment for SMEs. The policy loan was designed to support the government’s development goals and poverty reduction targets indicated in the 2001 10-year Socio-Economic Development Plan, various sector strategies, and the Comprehensive Poverty Reduction and Growth Strategy.

This report validates the completion report’s assessment of the program which aims to support the government’s efforts to create a business environment that is conducive to economic growth and employment generation in Viet Nam. IED overall assessment: Less than successful

Contents

• Project Basic Data
• Project Description
• Evaluation of Performance and Ratings
• Other Performance Assessments
• Overall Assessment, Lessons, and Recommendations
• Other considerations and Follow-up