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Vietnamese Female Entrepreneurs: Potentialities and Challenges

By Tuyet Mai, Vietnam
[Source: Women of Vietnam, (1), 1998]

In a recent nation-wide survey, statistics gathered from 46 provinces and cities show that in the non-State economic sector, the number of enterprises headed by women increased 5 times between 1992 and 1997.

In Ho Chi Minh City alone, 1,842 women are leading private enterprises, creating jobs for 44,701 workers.

In different parts of the country, the number of enterprises headed by women also increased. Their enterprises have also become bigger in size. The total registered capital fixed by law of private enterprises headed by women, is over 564 billion Dong.

Judging by the strength of the contingent of female entrepreneurs, we can find in them great potentialities. However without suitable support policies, they will face many difficulties in production and business.

At present, 90% female entrepreneurs need loans, but where and how to get loans is a problem for them. By decision of the Prime Minister, State enterprises can get loans from banks without collateral. For private enterprises, the owners have to mortgage their properties and complete many complicated procedures. Moreover, they can get loans only for 5 to 6 months, a short time not favourable for turning over the money.

In general, the sum of money they can borrow amounts to only one third of the value of properties put for mortgage. Besides, banks have the tendency to undersestimate the values of properties put for mortgage, therefore private enterprises can have only little access to sources of loans from banks. Without necessary capital, many entrepreneurs dare not invest in the application of new technologies and the improvement of pattern and quality of their products, to meet the increasing demands of customers; hence many of their products cannot compete with imported foreign products, especially smuggled goods. Not few enterprises cannot sell their products, others being not able to put into practice their projects of improvement of production, resign themselves to continue their old way of working, to prolong their existence. Female entrepreneurs also are facing this great challenge.

Besides, enterprises headed by women are mostly of small or medium size, and even with high quality of products, they cannot directly export their products to foreign countries, they have to export them through bigger companies under the form of confidement, paying rather high service charges, sometimes amounting to 1.5% of the total value of goods exported. This creates difficulties for female entrepreneurs and a number of them find that they get no profits by using this form of exportation.

Another problem is the knowledge level of female entrepreneurs. Most of them established their enterprises in the period from 1990 until now and have little experience in management. In Ho Chi Minh City, 30..3% of female entrepreneurs have University and College level, 12.7% have secondary level, while 53.3% of them have not attended any training course. Due to low cultural level and knowledge level, many women cannot well manage their enterprises and suffer losses and failure.

There is also the problem of care for the family. Most female entrepreneurs say that they have not enough time to care for their children and family. In the fierce competition under the market mechanism, they are too busy with production and business problems, and have not enough time for rest, recreation and family affairs. A number of female entrepreneurs have received the support, cooperation and assistance of their husbands and children, however not few of them are not in such a good luck, and some of their even face obstacles created by their own family. This is also a great challenge and to deal with it, to succeed in production and business, female entrepreneurs should have enough energy, courage, capacity and determination.

The Women's Union, by uniting the, can bring into play their abilities in the creation of jobs for workers, and of various products for internal consumption and for export, contributing to the economic development of the country, and the equal development of women.

In the period of industrialisation and modernisation of the country, female entrepreneurs can play a vanguard role in the application of advanced scientific technical achievements, in the renovation of technologies, in the regular access to modern methods of production.

With the active support of the Women's Union in putting forward suggestions for suitable State policies concerning female entrepreneurs, helping them to improve their knowledge level, their management skills, their understanding of laws and regulations...female entrepreneurs may have more and more important contributions to the economic life of the country and to the practice of gender equality in our country.

This is in fact one of the long-term objectives of different levels of the Vietnam Women's Union.


 
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