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The ASEAN SecretariatJakarta

The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967. The Member States of the Association are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Phil ippines, Singapore, Thailand and Viet Nam. The ASEAN Secretariat is based in Jakarta, Indonesia.

For inquiries, contact:The ASEAN SecretariatPublic Outreach and Civil Society Division70A Jalan SisingamangarajaJakarta 12110IndonesiaPhone : (62 21) 724-3372, 726-2991Fax : (62 21) 739-8234, 724-3504E-mail : [email protected]

General information on ASEAN appears online at the ASEAN Website: www.asean.org

Catalogue-in-Publication Data

Directory of Outstanding ASEAN SMEs 2011Jakarta: ASEAN Secretariat, October 2011

338.64591. Small Medium Enterprises ASEAN2. Economics Industries

ISBN 978-602-8411-77-6

The text of this publication may be freely quoted or reprinted with proper acknowledgement.

Copyright Association of Southeast Asian Nations (ASEAN) 2011All rights reserved

iiiDirectory of Outstanding ASEAN SMEs 2011

History of ASEAN ............................................................................................................... v

Foreword by H.E Dr. Surin Pitsuwan, Secretary-General of ASEAN .................................. vi

Message by H.E Sundram Pushpanathan, Deputy Secretary-General for the

ASEAN Economic Community ........................................................................................... viii

Introduction to the ASEAN Economic Community (AEC) .................................................. ix

Regional Initiatives for ASEAN SMEs : ASEAN Strategic Action Plan for SME

Development 2010-2015 ................................................................................................... 15

Overview of SMEs in ASEAN Member States .................................................................... 23

Directory of Outstanding ASEAN SMEs 2011

Agro-based/ Processed Food ..................................................................................... 67

Automotives / Transport/ Storage ............................................................................... 73

Electronics .................................................................................................................. 77

e-ASEAN .................................................................................................................... 81

Fisheries ................................................................................................................... 87

Healthcare .................................................................................................................. 91

Rubber - Based ......................................................................................................... 95

Textiles ....................................................................................................................... 99

Tourism ...................................................................................................................... 103

Wood-based / Furniture .............................................................................................. 107

Others

........................................................................................... 113

Handicrafts ......................................................................................................... 117

Construction ....................................................................................................... 120

Property .............................................................................................................. 123

Manufacturing .................................................................................................... 124

Wholesale/ Retail ............................................................................................... 128

SME Service Centers in ASEAN Member States ............................................................... 133

Free Trade Agreements (FTAs) ........................................................................................... 143

Food and Beverages

ivDirectory of Outstanding ASEAN SMEs 2011

ASEAN-the Association of Southeast Asian Nations was established on 8 August 1967 in Bangkok,

Thailand, with the signing of the ASEAN Declaration (or Bangkok Declaration) by the Founding

Members of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand. Afterwards

Brunei Darussalam joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on

23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of

ASEAN.

The two-page ASEAN Declaration contains the aims and purposes of the Association, which include

cooperation in the economic, social, cultural, technical, educational and other fields, and in the

promotion of regional peace and stability through abiding respect for justice and the rule of law, and

adherence to the principles of the United Nations Charter.

With a shared vision of ASEAN as a concert of Southeast Asian nations, outward looking, living in

peace, stability and prosperity, bonded together in partnership in dynamic development and in a

community of caring societies, the ASEAN Leaders in 2003 resolved that an ASEAN Community shall

be established in 2020. In 2007, the Leaders affirmed their strong commitment to accelerate the

establishment of an ASEAN Community by 2015. The ASEAN Community is comprised of three

pillars, namely the ASEAN Political-Security Community, ASEAN Economic Community and ASEAN

Socio-Cultural Community, all expected to work in tandem in establishing the ASEAN Community.

To achieve the ASEAN Community, ASEAN is guided by the ASEAN Charter, a firm foundation that

provides a legal status and institutional framework for the region. It codifies ASEAN norms, rules and

values; sets clear targets for ASEAN; and presents accountability and compliance. The Charter

entered into force on 15 December 2008. With the entry into force of the Charter, ASEAN will

henceforth operate under a new legal framework and establish a number of new organs to boost its

community-building process.

vDirectory of Outstanding ASEAN SMEs 2011

SMEs are known for their role in creating broad-based

employment, nurturing entrepreneurship, including that of

women and youth, and contributing towards poverty

alleviation.

The vast majority of the business enterprises globally are SMEs. A successful SME sector is crucial in

broadening and deepening the sustainable flow of trade and investment and equitable economic

development through employment opportunities for inclusive economic and social development in

the region.

Similar to other regions worldwide, SMEs in ASEAN are facing significant structural, fiscal and non-

fiscal issues and challenges, particularly access to finance, access and use of technology,

penetration into markets, and a variety of development support services. Conducive and supportive

government policies, increased connectivity through better infrastructure facilities and the

development of support services are vital in reducing the costs of operations especially for the SMEs

to ensure the development of a competitive and resilient SME sector; specifically in support of the

single market and production base and equitable economic development in ASEAN.

ASEAN Leaders have long acknowledged the importance of SMEs and have placed emphasis in

fostering SME development and capacity building in the region. They have recently reiterated their

commitment to SME development to ensure the SMEs are able to reap the benefits of regional

integration and tap into the global network of supply chain. To this end the ASEAN Economic

Ministers are developing a Framework for Equitable Development that gives emphasis to the SMEs

and narrowing the development gap both within and between ASEAN Member States.

Besides efforts at the national, the SMEs themselves at the regional level in ASEAN through the SME

Working Group are also taking initiatives to improve engagement of SMEs within the region and

viDirectory of Outstanding ASEAN SMEs 2011

Foreword by H.E Dr. Surin Pitsuwan,

Secretary-General of ASEAN

viiDirectory of Outstanding ASEAN SMEs 2011

integrating into the global economy. The Directory of Outstanding ASEAN SMEs 2011 lists the

outstanding SMEs in each ASEAN Member State, categorized by the priority integration sector of

ASEAN. It seeks to encourage competitiveness and innovation amongst the regional SMEs in

support of sustainable economic development and inclusive growth towards achieving an ASEAN

community by the year 2015. I commend the SME Working Group on this initiative and wish them

every success in their endeavours to improve the welfare of the SMEs.

Thank you.

SMEs in ASEAN account for more than 96% of all enterprises in

ASEAN Member States and generate between 50-95% of

domestic employment. They also contribute about 30-53% to

gross domestic product (GDP), and between 19-31% of

exports.

In ASEAN, to further enhance support and contribution of the SMEs to the ASEAN economies, the

ASEAN Strategic Action Plan for SME Development 2010-2015 has been developed for the medium

term. This Action Plan covers regional commitments in five important areas - namely: SMEs' access

to finance; internationalization of SMEs; strengthening SME human resource development and

capacity building; improving marketing and ICT skills of SMEs; and establishing SME service centers.

ASEAN, among others, has embarked on a number of specific activities vis-à-vis , an Expert Panel on SME

Access to Finance has also been formed to provide expert advice on finance to the regional projects and

initiatives to improve SMEs' access to finance from the conventional lending mechanisms to other financing

options; the development of the Common Curriculum for Entrepreneurship in ASEAN, a consultation-based

learning mechanism involving students, academics and SMEs, comprises 60% common teaching

materials and 40% localised teaching materials; the establishment, by 2011, of comprehensive SME

Service Centers with regional and sub-regional linkages in ASEAN aimed at improving the technological and

managerial capabilities of SMEs developing; improving Technology Incubators in ASEAN economies to

nurture and support techno-entrepreneurs from infancy to commercialization stages; and hyper-linking

most of the websites of SME agencies in ASEAN to promote the sharing of best practices and information

such as national and regional SME events and trade fairs.

It is our fervent hope that the Directory of Outstanding ASEAN SMEs 2011 will provide the avenue

for these listed ASEAN SMEs to market and promote trade and investment not only among ASEAN

SMEs but also with SMEs and large enterprises of ASEAN dialogue partner countries as well as the

global business community.

viiiDirectory of Outstanding ASEAN SMEs 2011

Message by H.E. Pushpanathan Sundram,

Deputy Secretary-General of ASEAN

for the ASEAN Economic Community (AEC)

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xiDirectory of Outstanding ASEAN SMEs 2011

In 2003, all ASEAN Leaders resolved that an ASEAN Community shall be established by 2020. In

2007, the Leaders affirmed their strong commitment to accelerate the establishment of an ASEAN

Community by 2015. The ASEAN Community realisation procedure comprises three pillars that work

in tandem: the ASEAN Political-Security Community, ASEAN Economic Community and ASEAN

Socio-Cultural Community.

Accordingly with these pillars agreed upon, the Leaders agreed to speed up the establishment of the

AEC to 2015 and to transform ASEAN into a region with free movement of goods, services,

investment, skilled labour, and freer flow of capital.

The ASEAN Economic Community (AEC) Blueprint was then adopted in 2007. The AEC Blueprint

serves as a coherent master plan guiding the establishment of the AEC. It identifies the characteristics

and elements of the AEC with clear targets and timelines for implementation of various measures as

well as pre-agreed flexibilities to accommodate the interests of all ASEAN Member States.

Taking into consideration the importance of the external trade to ASEAN and the need for the ASEAN

Community as a whole to remain outward looking, the ASEAN Economic Community (AEC)

envisages the following key characteristic: (a) a single market and production base, (b) a highly

competitive economic region, (c) a region of equitable economic development and (d) a region fully

integrated into the global economy.

With the realisation of the ASEAN Economic Community, ASEAN will become a single market and

production base. The establishment of ASEAN as a single market and production base will make

ASEAN more dynamic and competitive with new mechanisms and measures to strengthen the

implementation of its existing economic initiatives, accelerating regional integration in priority sectors,

facilitating movement of business persons, skilled labour and talents; and strengthening the

institutional mechanisms of ASEAN.

Single Market and Production Base

xiiDirectory of Outstanding ASEAN SMEs 2011

An ASEAN single market and production base comprises five core elements: (i) free flow of goods; (ii)

free flow of services; (iii) free flow of investment; (iv) freer flow of capital; and (v) free flow of skilled

labour. Industrial sectors included in the single market and production base comprise the twelve (12)

priority integration sectors: agro-based products, air travel (air transport), automotive, e-ASEAN,

electronics, fisheries, healthcare, rubber based products, textiles and apparel, tourism, wood-based

products and logistics as well as the food, agriculture and forestry sectors.

A single market for goods and services will facilitate the development of production networks in the

region and enhance ASEAN’s capacity to serve as a global production centre and as a part of the

global supply chain. Tariffs will be eliminated and non-tariff barriers will be gradually phased out.

Simple, harmonised and standardised trade and customs are expected to reduce transaction costs.

There will be a free movement of professionals. ASEAN investors will be free to invest in sectors and

the services sector will be opened up.

The creation of a stable, prosperous, and highly competitive economic region is the goal of ASEAN

economic integration.

There are six core elements under the competitive economic region: (i) competition policy; (ii)

consumer protection; (ii) intellectual property rights (IPR); (iv) infrastructure development; (v) taxation;

(vi) e-commerce.

ASEAN Member States have committed themselves to introduce nation-wide competition policies

and laws (CPL) to ensure a level playing field and incubate a culture of fair business competition for

enhanced regional economic performance in the long run.

Under equitable economic development there are two elements: (i) Small and Medium Enterprise

(SME) development and (ii) Initiatives for ASEAN Integration. These initiatives move towards bridging

the development divide both at the SME level and enhance economic integration of Cambodia, Lao

Competitive Economic Region

Equitable Economic Development

xiiiDirectory of Outstanding ASEAN SMEs 2011

PDR, Myanmar and Viet Nam (CLMV) to enable all Member States to move forward in a unified

manner and to enhance ASEAN’s competitiveness as a region as well for all to benefit from the

integration process.

ASEAN operates in an increasingly inter-connected and highly networked global environment, with

interdependent markets and globalised industries. In order to enable ASEAN businesses to compete

internationally, to make ASEAN a more dynamic and mainstream global supplier and to ensure that

the internal market remains attractive for foreign investment, ASEAN has to look beyond the borders

of AEC.

Two approaches taken by ASEAN in integrating with the global economy are: (i) a coherent approach

towards external economic relations through Free Trade Agreements (FTA) and Closer Economic

Partnerships (CEP); and (ii) enhanced participation in global supply networks.

Integration with Global Economy

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1. Introduction

2. The Policy Environment

thAt the 14 ASEAN Summit, the AEC Council was tasked to develop an ASEAN Action Plan to

enhance SMEs' competitiveness and resilience. An important policy focus in the Action Plan - underlined by theHigh-level Task Force - Economic Integration (HLTF-EI), the ASEAN Economic

Ministers (AEM) and ASEAN Leaders, is the need to foster private-sector engagement and

partnership on SME issues. This is to serve as a driving force in the implementation of SME

development policies and programmes, including those concerned with the accelerated

integration of the 12 priority sectors, at the national, subregional and/or regional levels.

The Plan defines the mission, objectives, guiding principles, current status, and future policies

and programs for ASEAN SME Development. The Plan aims to provide specific activities to be

conducted in the short and medium term, wider dissemination of information on regional

activities to ASEAN SMEs, and implementation of national and regional SME policies and

programmes.

2.1 The ASEAN Community

The ASEAN Charter, which came into force on 15 December 2008, embodies the collective

intent and political will of the ASEAN Member States towards achieving the vision of an ASEAN

Community by 2020.

With the ASEAN Charter, the peoples, institutions and resources of ASEAN Member States are

expected to converge into the ASEAN Community with unified and collective goals on key

development issues. The realization of this community rests upon the attainment of goals in the

17Directory of Outstanding ASEAN SMEs 2011

various sectors and areas of concern that comprise each of the three pillar communities—ASEAN

Political-Security Community, ASEAN Economic Community and ASEAN Socio-Cultural

Community. As a community, ASEAN aims bring about a whole new dimension to decades of

cooperation among its member countries with new opportunities and amidst more diverse

challenges in an increasingly complex global social and economic environment.

thAt the 14 ASEAN Summit in February 2009, the ASEAN Leaders adopted the APSC Blueprint,

ASCC Blueprint and the Initiatives for ASEAN integration (IAI) Work Plan 2, 2009-2015. The

Leaders further agreed that these Blueprints, together with the AEC Blueprint, which was approved

at the Twelfth ASEAN Summit in November 2007, shall constitute the Roadmap for an ASEAN Community, 2009-2015 to promote aholistic approach in achieving the ASEAN Community goals.

The AEC Blueprint in particular outlines the strategic areas of cooperation and integration to

establish a single market and production base, where there is free flow of goods, services, and

investment and freer movement of capital and skilled labour, a highly competitive economic

region, a region of equitable economic development, and a region fully integrated into the global

economy.

2.2 The ASEAN Policy Blueprint for SME Development (APBSD) 2004-2014

The ASEAN Economic Ministers (AEM) met during their Retreat in Siem Reap, Cambodia, on 4-5

May 2009. The Ministers noted that the ASEAN Policy Blueprint for SME Development 2004-

2014 (APBSD) aims to facilitate the emergence of a SME sector which is characteristically

entrepreneurial, growth oriented, outward-looking, modern and innovative.

The APBSD is currently in its sixth year of implementation. In view of this, the AEM agreed to

undertake a stock-taking exercise and review the implementation of the APBSD thus far in

1ASEAN.


1 Building on the progressive work under the APBSD, the Strategic Action Plan for ASEAN SME Development 2010-2015 was ndendorsed at the 42 ASEAN Economic Ministers in 2010, and is set as guiding principles for the r egional cooperation on SMEs.


3. Rationale for a Strategic Approach to the Development of SMEs in ASEAN

SMEs are the backbone of the ASEAN economies. They account for more than 96 per cent of all

enterprises and for between 50 and 95 per cent of employment in many AMSs. In addition, the

contribution of SMEs to GDP is generally significant, about 30-53 per cent, and the contribution of

SMEs to exports is between 19-31 per cent. They are also the largest source of domestic employment

across all economic sectors and in both rural and urban areas. The SME sector also provides

opportunities for women and youth to participate in the economic development of the country.

A strong, dynamic and efficient SME sector will ensure the sustainable, inclusive and broad-based

economic and social development. A vibrant SME sector is critical in supporting closer regional

integration through the establishment of the ASEAN Community, particularly the ASEAN

Economic Community (AEC). Thus, the encouragement and promotion of competitive and

innovative SMEs is necessary in contributing to greater economic growth and social development

towards more inclusive and broad-based integration of the ASEAN region.

The SME sector in ASEAN, however, is confronted with a wide-range of structural, financial and

other challenges, among which are limited access to finance, technologies and markets. There is

also the question of entrepreneurial spirit and management skills among ASEAN SMEs. These

problems are compounded by the lack of information, inadequate capacity for compliance with

standards and certification, and the absence of a more conducive business and policy environment.

In addition, there are the new trends of conducting business utilizing information and

communications technology (ICT) with on-line linkages across the value chain as well as the

outsourcing and networking strategies adopted by large enterprises and multinational

companies (MNCs) which lack participation by SMEs. All these require SMEs and government

to undertake proactive capacity building and other measures to ensure and sustain SME

participation in supply networks and to sharpen SME competitiveness, flexibility and hence

business sustainability.

SMEs are seen to be more agile and adaptable to changes in the business environment, and the

increasingly exacting market and consumer requirements. Concerted actions and development

programmes in partnership with donor agencies undertaken on a regional basis through the


ASEAN SME Working Group (ASMEWG) will be important in enhancing the capacity of SMEs to

ensure a more progressive SME sector towards the overall economic growth and the realisation

of the ASEAN Community.

Greater competition, rapid technological advances, more demanding and constant changes in

market and consumer requirements mean that SMEs have to be innovative and forward looking

in order to manage with success the challenges of the global, regional and domestic markets.

The formation of SME-based clusters, and inter-firm networks and linkages within ASEAN will

help leverage collaboration and collective efficiency, including scale economies across the value

chain, thus creating further opportunities for business development and supply linkages for

SMEs and their entrepreneurs in the region.

There is additionally a need to create and promote a more conducive business and policy

environment for SME development where both Government and the private sector assume

synergistic and complementary roles. The Government acts as a facilitator, while SMEs

themselves are the engine of growth. Indeed, collaborative SME development programmes

within a public-private partnership framework will ensure the continued economic growth and

social development in the region. These programs can be achieved through structured and

organized action plans and development initiatives, including though the introduction of wide-

ranging capacity building and fiscal and financial incentive programmes, with SMEs and their

entrepreneurs as the main target beneficiaries (Source: ASEAN Policy Blueprint For SME

Development 2004-2014).

4.1 Mission and objective

By 2015, ASEAN SMEs shall be world-class enterprises, capable of integration into the regional

and global supply chains, able to take advantage of the benefits of ASEAN economic community

building, and operating in a policy environment that is conducive to SME development, exports

and innovation.

4. Mission Statement and Operational Principles


4.2 Guiding principles

In implementing the Strategic Plan, ASEAN shall be guided by the needs of its stakeholders. The

Plan shall promote SME development through improving access to financing and technology,

strengthening export capacity, utilization of ICT solutions, enhanced capability to innovate and

strengthened human resource development through regional programmes.

The Plan shall also support mechanisms that promote access to information, database

development and dissemination of best practices.

4.3 Goals

To realize the vision and objective, ASEAN needs to achieve the following goals:

Enhancing Internationalization of SMEs and SME Marketing Capabilities

Improving SME Access to Finance.

Strengthening SME Human Resource Development and Capacity Building

Promoting the development of Incubator and Local SMEs

Establishing an SME Service Center/ASEAN SME Service Desk

Setting up an ASEAN SME Regional Development Fund.

Future policies and programs of the SMEWG should considered the specific needs and objectives of

ASEAN SMEs - e.g., (a) SME entrepreneurship and human resource development; (b) SME capacity

building in management, marketing, networking and supply chain formation, technology and

financing; (c) level policy playing field for SMEs, including information dissemination on, and inter-

agency coordination to enable SMEs take advantage of AFTA, AIA, PISs, AEC, etc.; (d) public-

private sector partnership for SME development and networking, etc.

The strategic schedule with key activities and timeline is available online at http: //www.asean.org/

23237.htm

5. Future policies and programs


6. Implementation, monitoring and updating of the Plan

Implementation of this Strategic Plan shall be guided by a medium-term Strategic Schedule and

annual work programs to be formulated upon its adoption. The Plan is meant to be a dynamic

document and may be updated when there are significant changes in data needs or shifts in

investment policy and program thrusts and priorities. Periodic monitoring shall be done through

the AEC Scorecard or similar mechanisms.

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SMEs are generally defined as those enterprises having 6 to 100 employees and constitute around

48.5% of all business establishments in the country. Statistic also shows that 50% of businesses in

Brunei are made up of Micro enterprises, those businesses having 1 to 5 employees; Small enterprises

(46%) having 6-50 employees and 2.5% of Medium enterprises having 51-100 employees. In the

context of Brunei Darussalam, SMEs thus could be defined as those enterprises having 1-100

employees that contribute around 98.5% of the total business establishments by incorporating micro,

small and medium enterprises.

SME Development Policies and Key Statistics:

Small and medium enterprises (SMEs) have been identified as major players in industrial development

that have a high potential in contributing to the diversification of the economy. SMEs contributed 58% to

Brunei's total employment in the private sector and 22% to GDP in all sectors. The statistics show that

in 2008 all businesses in Brunei Darussalam are made up of 52.3% of micro enterprises, 43.8% of small

enterprises, 2.23% of medium enterprises, and 1.63% of large enterprises.

The primary resources sectors, Islamic financial market and halal market have been identified as key

growth areas for local SMEs. One of the areas SMEs are being encouraged to enter is ecotourism.

The government also recognizes the need to develop the capability and competitiveness of local

entrepreneurs and businesspersons in terms of socially responsible entrepreneurship qualities,

penetration of the export market, productivity, innovation and technology transfer. To enhance the

development of local SMEs into competitive and viable businesses both domestically and

internationally, the government provides various forms of assistance such as in financing

entrepreneurial development, investment incentives, technology transfer, infrastructure and various

other facilities.


Definition:

Micro

Small

Medium

Large

1 to 5

6 to 50

51 to 100

101 to above

Type of Enterprise Number of Employees


In line with the development of local investors, the government has also emphasised on attracting

foreign investors and international cooperation. Foreign investors are actively sought through extensive

promotions and installation of various incentive schemes. Regional, bilateral and multilateral

cooperation is considered as the way to further open up more trade and investment opportunities for

Brunei Darussalam.

Besides the governmental supports, Brunei Darussalam has four chambers of commerce that play an

important role in the development of SMEs. These are the National Chamber of Commerce and

Industry, the Brunei Malay Chamber of Commerce and Industry, Brunei International Chamber of

Commerce and Industry and the Chinese Chamber of Commerce. All of them share the common

objective of promoting cooperation between its members and strengthening business ties with each

other to attain economic prosperity.

SME Agency:

The Ministry of Industry and Primary Resources (MIPR) is responsible for the development of SMEs.

The Policy and Planning Division has its mission to plan, formulate and manage industrial and business

policies and strategic industry directions in coordination and collaboration with departments and

divisions under the MIPR to achieve economic diversification.

Other supporting agencies include the Brunei Economic Development Board (BEBD) which has

formulated several effective and promising local business development programmes and initiatives

through a framework that emphasizes Capability, Capital and Connectivity. This will create

opportunities for local businesses while promoting a business-friendly environment. These include:

Micro Enterprise Development

Start-up & Growth Enterprise Development

Internationalization & Commercialization Support

Other Initiatives

Webpage:

http://www.bruneimipr.gov.bn.

SMEs in Cambodia are defined based on the equivalent number of full-time employees. The definition is

to be applied to all industries. However, where the number of employee is not appropriate, the definition

based on the size of total assets (excluding land) or a combination of the two should be used.

Nevertheless, there is no formal definition of SME in terms of financial standing because different

financial institutions often require different data.


The SMEs in Cambodia are categorised into three sectors by the Ministry of Industry, Mines and Energy

of Cambodia (MIME) as follows:

1) Production sector including agricultural processing, manufacturing, and mining;

2) Service sector; and

3) Trading sector including wholesales and retails.

In 2009, almost all (98.46 percent) of the total 36,116 establishments registered with MIME, are SMEs

numbering 35,560. The growth rate of total establishments for the year is 8.3%. The Small and Medium

industries are local investment and domestic consumption oriented; meanwhile, large industries mostly

are foreign investment and export market oriented. According to MIME in 2009, the small and medium

manufacturers in Cambodia accounts for 98.5% whereas large industries accounts for 1.5% of total

manufacturers.


Definition:

Micro

Small

Medium

Less than 10

11 to 50

51 to 100

Less than 50 000

50 to 250 000

250 to 500 000

Type of Enterprise Number of Employees Asset (USD)

In the year 2009, most of the SMEs are in the food, beverages and tobacco sectors (84.33%); followed

by the fabricated metal products sector (5.34%); textile and wearing apparel sector (4.05%); other

manufacturing industries sector (2.78%); non-metallic mineral products (2.78%); chemicals petroleum,

coal, rubber and plastic products (0.58%); and the paper products sector (0.14%), respectively.

In July 2004, the new Rectangular Strategy for Growth, Employment, Equity and Efficiency was

announced to govern private sector development and job creation in Cambodia. Part II of the

“Rectangular Strategy-Phase II” stated that the Royal Government will continue to improve the

business climate for small and medium enterprises.

The RGC has reduced the minimum requirements for the registration of SMEs and the company

registration fee. The accounting system and financial report mechanism have been simplified. Loans

provided by financial institutions to SMEs have increased considerably.

To implement the RGC's prioritised policies, the MIME will focus on achieving the following four

objectives:

1) Creating an enabling business environment for the development of the industry and the

manufacturing sector;

2) Promoting SME and developing businesses;

3) Developing private sector and attracting investment; and

4) Building human resources capacity and technology transfer.

The General Department of Industry (GDI) is a primary agency under the MIME, responsible for

formulating and implementing government policy and development strategies in the industry sector. It

has a core mandate to implement the RGC's Development Policy and Strategy as articulated in the

Rectangular Strategy Phase II.

SME Agency:

Webpage:

www.mime.gov.kh



Definition:

Micro

Small

Medium

Large

Less than 50,000,000

50,000,000 up to 500,000,000

500,000,000 up to 10,000,000,000

More than 10,000,000,000

Less than 300,000,000

300,000,000 up to 2,500,000,000

2,500,000,000 up to 50,000,000,000

More than 50,000,000,000

Type of Enterprise Asset Value (IDR) Annual Sales (IDR)

SMEs in Indonesia are defined as independent productive enterprises, which are run by individuals or

companies that are not subsidiaries that are owned, run or become both directly or indirectly part of a

large enterprise. The criteria of SMEs are based on the assets and annual sales as mentioned on the

table below.


SMEs play a vital role in reducing the rate of poverty and unemployment in the Indonesian economy. In

2009, micro, small and medium enterprises (MSMEs) in Indonesia comprise of 52.7 million units or

99.99% of the total business enterprises, and employs 96.21 million people or 97% of the total labor

forces. The SMEs share to GDP and export is 56.53% and 17.02%, respectively.

To empower SMEs, the Indonesian Government has launched several strategic programs such as the

Credit for Small Holders, national program of Community Empowerment and Community Health

Insurance. The purpose of the Credit for Small Holders program is to give easy loan credits to help

businesses, particularly micro enterprises. The government will guarantee up to 80% of the possible

bad debt and no collateral is needed.

The credit will accelerate the development of primary sectors and empower small-scale businesses, to

improve their accessibility to state, private or regional banks, to reduce poverty levels and expand job

opportunities. Individuals, groups or cooperatives are eligible to access this program with credit ranging

from IDR5 million up to IDR2 billion (approximately US$ 500 – 200,000). The target is to provide US$ 22

billion of credit per year until 2014.


To further enhance SME access to the global market, the government provides capacity building

programs, technology transfer, access to market and facilitates SMEs to participate at global

exhibitions.

MSMEs are the engine of our economic growth. They are the main pillars of the Indonesian economy,

and serve as the principal source of domestic employment across all economic sectors—including

women and young generations. Promoting a competitive and innovative SME sector is mandatory to

enhance the economic growth of Indonesia. A strong, dynamic and efficient SME sector will ensure a

sustainable economic development.

The SME agency in Indonesia is the Ministry of Cooperative and SME (MOCSME). The Ministry has

been empowering cooperatives, micro, small and medium enterprises (CSMEs) so that they become

the primary role players in the national economy. Efforts and strategic moves will continue to be made in

a systematic, consistent and sustainable manner.

The key success to empower CSMEs lies in the synergy of government policies and institutions. Thus,

the MOCSME takes the role of a coordinator to formulate national policies and is expected to play an

active role to empower CSMEs in Indonesia.

Guided by the Strategic Plan of Action for CSME Development (2010-2014), the MOCSME has sought

to realize seven Key Development Milestones (KDMs) by 2014. Five out of the seven KDMs concerns

SME development which are highlighted as follows:

1) increase export value by 20%;

2) utilize online SME information system;

3) distribute IDR20 trillions annually from Credit for Small Holders;

4) generate 1000 skilled entrepreneurs per year; and

5) successfully implement 100 One Village One Product (OVOP) movement.

SME Agency:


Web-portal:

www.depkop.go.id

www.smecda.com

www.smescoindonesia.com

www.danabergulir.com

Small and Medium Enterprises or SMEs are independent enterprise units that are legally registered and

operating according to the prevailing laws of Lao PDR. Statistic shows that 99.98% of businesses in

Lao PDR are made up of SMEs. As highlighted in the table below, small enterprise is defined as

businesses having an annual average number of employees not exceeding 19 persons or total assets

not exceeding two hundred and fifty million kip or an annual turnover not exceeding four hundred million

kip. Medium enterprises is defined as businesses having an annual average number of employees not

exceeding 99 persons or total assets not exceeding one billion two hundred million kip or an annual

turnover not exceeding one billion kip.



SMEs have an important role in the economic system of Lao PDR. SMEs account for 83% of

employment in the country and contribute between 6 to 9% of GDP in all sectors. Statistic shows that in

2006, 64.5 % of SMEs are in the trade sector, followed by manufacturing (19%) and the remaining

sectors (16.5%).

In line with the vision, objectives and goals of the socio-economic development plan (until 2020), the

general direction and tasks outlined in the Sixth National Socio-Economic Development Plan (2006-

2010), the government issued a decree on SME Promotion and Development, and a strategy on SME

Development. These documents are high-level documents, clarifying the policies and setting the focus

on areas to promote and develop SMEs. The aim is mainly employment creation and increasing the

Small

Medium

<= 19

>19 to <= 99

<= 400 million

<= 1 billion

Type of Enterprise Average annual

number of employees

Annual turnover

in kip

Total assets

in kip

<= 250 million

<= 1.2 billion

Definition:

living standards of people, thus laying the foundations for an industrialized and modernized economic

sector, which contributes to economic growth. The focus areas are highlighted as follows:

1) Creating and enabling regulatory and administrative environment;

2) Enhancing competiveness of SMEs;

3) Expanding domestic and international markets;

4) Improving access to finance;

5) Encouraging and cresting favorable conditions for establishing business organization; and

6) Enhancing entrepreneurial attitudes and characteristics within the society.

The Government of Lao PDR has amended the laws and regulations, such as the investment promotion

law, enterprise law, microfinance institution management regulation, enterprise registration regulation,

tax collection regulation, policy base finance, and the establishment of SME fund, to further facilitate the

business sector.

The National SME Development Plan 2011-2015 which is stipulated under the Seventh National Socio-

Economic Development Plan 2011-2015, aims to continue implementing the policies as laid down

under the decrees and strategies of SME Promotion and Development. Recently, the SME Promotion

Law was drafted in accordance to the decree on SME Promotion and Development. The Small and

Medium Enterprise Promotion and Development Office (SMEPDO) was established to implement these

policies. The focus areas in the National SME Development Plan 2011-2015, are categorized into

seven focus areas, namely:

1) Improving the regulatory environment and public administration of economic activities;

2) Improving access to finance;

3) Formation of new entrepreneurs;

4) Increase the provision of support and Business Development Service (BDS);

5) Enhance business linkages between large enterprises and SMEs;

6) Promotion the increase of productivities for upgrading the quality and standard of products

and services of SMEs and

7) Enhancing access to markets and enlarge markets for SMEs.


The Department of Trade Production and Product Development under the Ministry of Industry and

Commerce also supports the growth of SMEs by among others; assisting manufacturers and exporters

achieve their production potential and marketing ability, organising export and trade promotion and

exhibitions, and trade fairs.

The Lao National Chamber of Commerce and Industry (LNCCI) also provides information on SME

activities; negotiates on commerce, industry and services; issue certificates of origin; approves the

establishment of business association; and promotes trade and investment and SME development.

There are several official business associations and training institutions also supporting the promotion

and development of SMEs such as the Lao-India Entrepreneurship Development Center and the Lao-

Japan Human Resource Development Institute.

The SMEPDO under the Ministry of Industry and Commerce is responsible for the promotion and

development of SMEs. The SME Policy Research Division has its mission to plan, formulate and

manage policies, strategize and plan the focus areas in coordination with other divisions under

SMEPDO, the departments under the Ministry of Industry and Commerce and line Ministries; so as to

achieve SME promotion and development as well as economic growth.

SME Agency:

Webpage:

www.smepdo.org


Malaysia adopted a common definition of SMEs to facilitate the identification of SMEs in the various

sectors and subsectors. This has facilitated the Government to formulate effective development

policies, support programmes as well as provision of technical and financial assistance.

An enterprise is considered an SME in each of the respective sectors based on the annual sales

turnover or number of full-time employees as shown in the table below.


Category of SMEs

Manufacturing, Manufacturing-Related Services and Agro-based industries

"Small and medium enterprises in the manufacturing, manufacturing related services and agro-

based industries are enterprises with full-time employees not exceeding 150 or with annual sales

turnover not exceeding RM25 million"

Services, Primary Agriculture and Information & Communication Technology (ICT)

"Small and medium enterprises in the services, primary agriculture and Information & Communication

Technology (ICT) sectors are enterprises with full-time employees not exceeding 50 OR with annual

sales turnover not exceeding RM5 million"


SMEs have long been recognized as the backbone to any economy as they have been an important

generator of employment and growth. Similarly in Malaysia, SMEs account for about 99% of total

Definition:

Micro-enterprise Small-enterprise Medium-enterprise

Manufacturing, Manufacturing-

Related Services and Agro-based

industries

Agriculture and Information &

Communication Technology (ICT)

Sales turnover of less than RM250,000 OR Full time employees

less than 5

Sales turnover of less than RM200,000 OR Full time employees

less than 5

Sales turnover between RM250,000 and less than RM10 million ORFull time employees between 5 and 50

Sales turnover between RM200,000 and less than RM1 million OR Full time employees between 5 and 19

Sales turnover between RM10 million and RM25 million OR Full time employees between

51 and 150

Sales turnover between RM1 million and RM5 million OR

Full time employees between 20 and 50

business establishments and contribute 31% of the nation's GDP. SMEs' shares to total employment

and exports of the country are 56% and 19% respectively.

SME development programmes implemented by various Ministries & Agencies in Malaysia are based

on three (3) main strategic thrusts which aim at:

1) Strengthening the enabling infrastructure. Formulations and enactment, or review and

amendment, of guidelines, standards, licensing requirements and fiscal incentives governing the

operations and activities of SMEs and entrepreneurs:

Developing and enhancing physical infrastructure

Information management

Regulations and operation

2) Building the Capacity and Capability of Domestic SMEs. Policies or programmes to enhance the

knowledge, skills and ability of SMEs and their employees towards improving their performance,

growth and competitiveness:

Entrepreneur development

Human capital development

Advisory services

Awareness and outreach

Technology enhancement

Product development

Marketing and Promotion

3) Enhancing Access to Financing by SMEs. Policies and programmes to ensure adequate access

to financing to support the growth and development of SMEs across all sectors

SME Agency

On 2 May 1996, a specialised agency was established to spur the development of SMEs by providing

infrastructure facilities, financial assistance, advisory services, market access and other support

programmes. Known as the Small and Medium Industries Development Corporation (SMIDEC), its

aim was to develop capable and resilient Malaysian SMEs to be competitive in the global market.


The establishment of the National SME Development Council (NSDC) in 2004 presented yet another

chapter in SME development in Malaysia. As the highest policy-making body, its role was to formulate

strategies for SME development across all economic sectors, coordinate the tasks of related

Ministries and Agencies, encourage partnership with the private sector, as well as ensure effective

implementation of the overall SME development programmes in this country. Initiatives under NSDC

included enhanced access to financing, financial restructuring and advisory services, information,

training and marketing coordination, and a comprehensive SME database to monitor the progress of

SMEs across all economic sectors.

In 2007, the NSDC decided to appoint a single dedicated agency to formulate overall policies and

strategies for SMEs and to coordinate programmes across all related Ministries and Agencies.

SMIDEC was tasked to assume the role and the official transformation into Small and Medium

Enterprise Corporation Malaysia (SME Corp. Malaysia) commenced on 2 October 2009. SME Corp.

Malaysia is now the central point of reference for information and advisory services for all SMEs in

Malaysia.

Web-portal:

www.smecorp.gov.my

www.smeinfo.com.my


The criteria used to define SMEs in Myanmar, varies according to the country's economic condition.

The Private Enterprise Law 1990 classifies enterprises into small, medium and large-scale enterprises

as illustrated in the table below. The definition of SMEs can also be found in the Cottage Industries

Promotion Law (1991), which classifies the size of cottage industries.



There are a total of 43,503 privately owned establishments registered under the Private Industrial

Enterprise Law (Ministry of Industry 1) in 2007. Based on the data of the Ministry of Industry (1), about

91.99% of the establishments in 2007 are SMEs.

The agriculture, livestock and fisheries and forestry sectors contributes to the bulk share of GDP

accounting for 41.2%, while the processing and manufacturing sector accounts for approximately

21.7%, and the service sector accounts for 37.1%. The industrial sector is steadily increasing year by

year.

The following government institutions have been established to develop both state-owned and

privately-owned enterprises:

Central Industrial Development Committee chaired by the Vice–Senior General of State

Piece and Development Council (SPDC) and 14 Minister as members, to formulate policies;

Myanmar Industrial Development Committee (MIDC) chaired by the Minister of Industry No

(1), and the Ministers and Deputy Ministers as members, to coordinate Industrial

Development; and

Power (HP) used

No of workers

Capital Outlay (Kyat million)

Production Value per year (million)

Less than 3 Hp

Less than 10

26 to 50

51 to 100

Over 1 to 5

Over 2.5 to 10

Definition of Criteria Micro Small Medium

3 to 25

10 to 50

Up to 1

Up to 2.5

Definition:

Myanmar Industrial Development Working Committee (MIDWC) chaired by the Minister of

Ministry of Industry No (2), to implement the policy for the development of Industrial Zones

including the development of SMEs.

The Industrial Development Working Committee with the assistance of the ten Sub–Committees

regularly conducts industrial exhibitions, seminars and conferences on technology, productivity and

management, training courses to upgrade technical skills and transfer of technology of SMEs and

private sectors. The Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI)

and Myanmar Industrial Association (MIA) are also playing leading roles in private sector development

by providing various services such as consultancy, providing information on trade and investment,

newsletters and trade bulletins, business matching training and seminars, workshops, trade fairs,

exhibitions, study tour missions, participation in various government committees and other

promotional activities.

The government recognizes the important role of SMEs and is therefore developing an SMI promotion

policy, to assist in the development of SMEs. The policy, which will be issued by 2011, has 11 chapters

covering among others, financial assistance and guarantee, fostering local industries, market

development, human resource development, and technological innovation and research.

Headed by the Ministry of Industry No (2), the Industrial Development Committee (IDC) has been threstructured on 20 of April 2011, to play the role as the prime mover in the industrial development

process. Current works involves greater emphasis on green industries and also coordinating the works

of members of the Industrial Development Committee, Myanmar Federation of Chamber of Commerce

& Industry, 18 Supervisory Committees from (18) industrial Zones and the private sectors. The IDC

carries out the following tasks:

Act as the primary focal point for SME development;

Implement new projects to establish factories in cooperation with developed countries;

Further develop the agro-based industries;

Managing and operating Industrial Training Centers that offers human resource development

programmes;

SME Agency:



Enhance industrial production qualitatively and quantitatively whilst promoting efficient and

green production methods; and

Promote international cooperation.

Twelve sub–committees under the IDC have been established consisting of members from the

government, private business and non-government organizations to create a sound policy, business

environment and a supportive regulatory framework for SMEs. According to the guidelines of IDC, the

twelve sub–committees have the task to implement and fulfill the industries' targets and activities.

Web-portal:

http://www.myanmarindustry2.com/


Small and Medium Enterprises (SMEs) shall be defined as any business activity or enterprise engaged in

industry, agribusiness and/or services, whether single proprietorship, cooperative, partnership or

corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which

the particular business entity's office, plant and equipment are situated, must have value falling under

the following categories:


The Philippine SME sector is seen as a critical driver for the country's economic growth. The sector

serves not only as supplier and subcontractor to large enterprises and exporters but also as part of the

support system for logistics services. The SME sector accounted for 99.6% of total establishments in

the country, and contributed 61.2% of the country's total employment and 35.7% of total value added.

The growth of the SME sector, however, has not been vigorous enough to propel the economy.

The SME sector is made up of 777,436 enterprises across the country in 2009. The bulk of enterprises

(91.1%) are composed of micro enterprises. Small enterprises accounted for a share of around 8.1%

while medium enterprises registered a very small share of 0.4%. Large enterprises had about the same

share as medium enterprises (0.4%).

Definition:

PHP 3,000,000 or less (US$55,000 or less)

PHP 3,000,001 15,000,000(US$55,001 US$277,000)

PHP 15,000,001 100,000,000(US$277,001 US$1,850,000)

Above PHP100,000,000(Above US$1,850,000)

Micro

Small

Medium

Large

Type of Enterprise Total Asset Value


Almost 50 percent of Philippine SMEs are engaged in wholesale and retail trade while 14 percent and 12

percent are in the manufacturing and hotels and restaurants sectors, respectively.

Republic Act No. 6977, as amended by RA 8289 and further amended by RA 9501 or the amended

“Magna Carta for Micro, Small and Medium Enterprises”, laid down the legal basis for a comprehensive

approach to promote, develop and assist MSMEs in the Philippines. Enacted in 1991, the law is a

landmark legislation guided by three principles for setting the pace of MSME development: minimal set

of rules and simplification of procedures and requirements; private sector participation in the

implementation of policies and programs; and coordination of government efforts to develop the MSME

sector.

The law created the Micro, Small and Medium Enterprise Development (MSMED) Council, which is

mandated to carry out the provisions of the law and be primarily responsible for the development of the

Philippine MSME sector. It also created the Small Business Guarantee and Finance Corporation or SB

Corporation and required all lending institutions to set aside at least 8% for micro and small enterprises

and at least 2% for medium enterprises of their total loan portfolio and make it available for MSME credit.

Developed in line with RA 9501, the MSME Development Plan of the Philippines aims to promote,

support, strengthen, and encourage the growth of MSMEs in all productive sectors of the economy. It

seeks to raise the sector's contribution to gross value added (GVA) and employment generation in line

with the government's mission of achieving poverty alleviation through inclusive growth . It intends to

improve the business environment for MSMEs, increase their access to finance, allow them to

penetrate new markets and maintain and expand existing ones, and raise their level of productivity and

efficiency using a results-based management approach.

The Plan will take into consideration global themes and cross-cutting issues related to gender, climate

change, and green growth, corporate social responsibility, and migration. It will likewise support the

adoption of local and regional economic development, sector development, and market system

development approaches.


SME Agency:

The Bureau of Micro, Small and Medium Enterprise Development (BMSMED) of the Department of

Trade and Industry is mandated to formulate, implement and monitor development programs both for

MSMEs and for private institutions involved in assisting the trade and industry sector.

The BMSMED, in its capacity as the MSMED Council Secretariat, provides technical support to the

Council. As such, the Bureau reviews and prepares position papers concerning policies and issues

affecting the growth and development of MSMEs in the areas of investment, trade, financing,

technology, structural reforms and regional development.

Web-portal:

http://www.dti.gov.ph/dti/index.php?p=79



SME Agency - SPRING Singapore:

Today, 99% of all enterprises in Singapore are SMEs. They employ seven out of every 10 workers, and

contribute 60% of national GDP.

SPRING Singapore's mission is to help Singapore enterprises grow and to build trust in Singapore

products and services.

As an enterprise development agency, SPRING Singapore strengthens the environment for enterprises

to form, compete and grow by providing key business support services and broad-based capability

upgrading for start-ups and SMEs, and advocate improvements to business regulations. SPRING also

seek to improve the SME financing environment and increase entrepreneurial activities in Singapore.

SPRING works with other government agencies and industry partners in selected sectors to develop

globally competitive clusters. We focus on developing industry-wide infrastructure & capabilities,

creating market opportunities, and strengthen industry associations' leadership and their industry

development efforts.

SPRING aims to groom SMEs with strong growth potential to compete successfully in the global arena,

by encouraging growing SMEs to upgrade or develop new capabilities in areas such as, intellectual

property management, technology innovation, design, and human resource management.

Definition:

Small

Medium

Type of EnterpriseNumber of Employees

Asset Value/ other variables

Annual sales turnover of

not more than $100

million or employing no

more than 200 staff


SPRING provides tailored support, including incubation and financing, to innovative start-ups and

partner educators to provide budding entrepreneurs the support they need to bring their business ideas

into reality.

As the national standards and accreditation body, SPRING develops and promotes an internationally-

recognised standards and quality assurance infrastructure that builds trust in Singapore enterprises,

products and services.

SPRING raise awareness of the importance of standards and conformance and encourage industry-

wide adoption of standards and conformance programmes to help companies improve their

competitiveness.

SPRING also participates in international and regional standards and conformance fora and in mutual

recognition agreements to promote trust and acceptance of Singapore's products and services in the

global market.

Web-portal:

http://www.spring.gov.sg/Pages/Homepage.aspx

SMEs in Thailand are categorized into 4 main groups: manufacturing, trade (wholesale), trade (retail),

and service. The definition of Thai SMEs is based on 2 criteria namely; the number of employees and

fixed asset value. In this regard, an enterprise is not required to meet both types of the criterion.

Small

Medium

Manufacturing

Trade (Wholesale)

Trade (Retail)

Service

Manufacturing

Trade (Wholesale)

Trade (Retail)

Service

Up to 50

Up to 50

Up to 30

Up to 50

50 - 200

50 - 100

30 - 60

50 - 200

Type of Enterprise SectorNumber of Employees

(person)

Asset Value*

(Million baht)

Up to 50

Up to 25

Up to 15

Up to 50

50 - 200

26 - 50

16 - 30

51 -200

*On September 14, 2011, the exchange rate was at 1 USD = 30.29 baht.


The total number of SMEs in Thailand from 2009 to 2010 was approximately 2.9 million accounting for

99.8% of the overall number of enterprises. The SMEs can also be categorized into the following

sectors:

In trade and maintenance sector, Thailand had 1,371,488 SMEs or about 99.8 percent of the

total sector.

In service sector, there were 975,552 SMEs or 99.8 percent of the total sector.

In manufacturing sector, there were 547,052 SMEs or 99.6 percent of the total sector and the

overall economy.

Out of the total 12,405,597 of jobs in 2009, SMEs accounts for 9,701,354 or 78.20% of employment.

The service sector accounts for the most proportion at 3,467,763 positions, followed by the

manufacturing sector and the trade and maintenance sector at 3,320,409 and 2,912,678, respectively.

Definition:



SMEs accounts for approximately 37.1% of the overall GDP and contributes 28.4% of the nation's total

exports.

The key results of Thailand's SME promotion initiatives for the fiscal year of 2009 can be summarized

into 4 aspects as follows:

1) Human resource development and the development of business operation;

2) The development of innovation and intellectual property;

3) The development of supporting factors for business conduct such as:

Up-to-date database management system

Marketing

Finance

The development of provincial regions

Law, rules and regulations and promotional privileges

The promotion of systems and technological tools that facilitate SME's business

conduct

The Level-Up of knowledge and skills of personnel

4) The formulation of the Third SME Promotion Master Plan (2012-2016)

Since August 2011, Thailand's cabinet has endorsed the Third SME Promotion Master Plan (2012-

2016) to be used as the guideline for the development and promotion of Thai SMEs so that they will

grow and be competitive in the dynamic global environment.

The concept of the Third SME Promotion Master Plan (2012-2016) is in line with and linked to the thgovernment's national policies and other related strategic plans such as, the 11 National Economic

and Social Development Plan B.E. 2555-2559 (2012-2016), which still adheres to the philosophy of

“sufficiency economy” and “people-centered development,” as well as the “creation of balanced

development” in all dimensions. In addition, the Third Plan is linked to the strategy of the Ministry of

Industry of Thailand and other related ministries, as well as development plans at the sub-regional level

that takes into account the needs and the potential of the local people, and the readiness of the public

and the private sectors.


SME Agency:

Web-portal:

The Office of Small and Medium Enterprises Promotion (OSMEP) is a government agency under the

supervision of the Ministry of Industry of Thailand. Its vision is to be Thailand's leading organization that

formulates policies and strategies to promote SMEs. OSMEP also serve as a focal point to coordinate

the network systems of public and private sectors in order to forge ahead with the growth of SMEs

based on strength and sustainability.

OSMEP integrates data and information from all SME agencies in the public and private sectors, and

compiles results of the implementation conducted under the SME Promotion Action Plan based on

both the activities that were funded by the SME Promotion Fund, and the non-funded activities by

agencies relevant to SME promotion.

www.sme.go.th


SMEs in Viet Nam are business entities that are registered under the current regulation and are

classified into three categories: micro, small, and medium enterprises. They are defined in accordance

to the total capital (equivalent to the total asset value) or the annual average labor headcount. The total

capital is used as the priority criterion to define SMEs. The classification of SMEs by sector is illustrated

below:


Improving the Business Environment

SME play a more and more crucial role in the socio-economic development of Viet Nam. SME

development is a key component of Viet Nam's approach to poverty alleviation, and fulfilling the

country's Millennium Development Goals. The importance of the SME sector in Viet Nam has received

growing recognition from all corners of society. Having been fully aware of this, the Communist Party

and the Government of Viet Nam considers the development of SME as one of the most important

mandates.

Definition:

Sector

Microenterprises

Laborheadcount

(person)

Smallenterprises

Totalcapital

(billion VND)

Mediumenterprises

Laborheadcount

(person)

Totalcapital

(billion VND)

Laborheadcount

(person)

I. Agriculture, Forestry, and Fisheries

II. Industry and Construction

III. Commerce and Services

10£

10£

10£

20£ 2O0£ 100£ 300£

20£

10£

2O0£

50£

100£

50£

300£

100£

Administrative procedures reform is undergoing substantial renovation. The Government adopted “The

Master Plan on Simplifying Administrative Procedures (Project 30: Office of Government)” in 2007. The

aim is to prepare an inventory, and review, all of the administrative procedures affecting businesses, at

both the national and provincial levels. All procedures will be compiled in a comprehensive, transparent

and easily accessible database. The second Phase of Project 30 will “review, simplify or abolish

cumbersome procedures,” so as to reduce compliance costs.

Business registration. The Enterprise Law transformed the approach to business start-up and

registration from one of “asking permission to do business” to one of “notifying the requisite authority of

the existence of the business entity”, as long as the planned business activity is not prohibited by law.

At present, business start up is much easier than a few years ago. Start-up procedures, time and cost

have all been cut down. Many locations have established one-stop-shop mechanisms for granting the

certificate of business registration and tax registration, as well as the stamp-specimen registration

(Circular 05/2008/TTLT/BKH-BTC-BCA of July 2008). The time for granting business and tax

registration has been reduced to five days (the Enterprise Law allows a maximum of 15 days, excluding

time for stamp-engraving and tax registration), and in some locations (such as Lao Cai, Thai Nguyen

and Long An, among others) has been further reduced to just three working days.

A national business registration system is now being developed that allows access to public business

registration data on a nationwide basis. Streamlined processes are expected to further reduce

business registration time and costs, and also ensure more regular updating of information. The one

stop shop mechanism has been applied to the business registration process and will be further

improved in line with the new registration system.

Other supporting measures includes providing a more transparent and simplified tax procedures,

creating favourable business environment through trade and investment facilitation, and accelerating

infrastructure development, human resource development, support SMEs financial access to credit,

information science and technology.



SME Agency:

Web-portal:

SME Support Institutions system in Viet Nam functions under the leadership of the Prime Minister and

has been established according to Government Decree No. 90/2001/ND-CP, dated 23 November

2001. The SME Development Council advises the Prime Minister on SME development and is chaired

by the Minister of Planning and Investment of Viet Nam.

The Agency for SME Development is the SME policy coordination agency at the central level as well as

the standing secretariat of the SME Development Council. At provincial levels, the Department of

Planning and Investment under the Provincial/ Municipal People's Committee is the SME policy

coordination agency, while many other Departments also implement SME support measures.

Government agencies at the central and provincial levels collaborate closely with private sector

representative and public and private service suppliers to assist SMEs to improve their

competitiveness.

http://www.business.gov.vn/index.aspx?LangType=1033

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