The USAID Governance for Inclusive Growth Program collaborated with the Agency for Enterprise Development under Vietnam’s Ministry of Planning and Investment to conduct a field study and hold consultations in Hanoi and Ho Chi Minh City to identify challenges and practical solutions to support Vietnam’s small and medium enterprises (SMEs) to integrate into the electronics value chain. On October 4, a consultation workshop was organized in Ho Chi Minh City and attended by representatives of the Economic Committee of the National Assembly, the Office of the Government, ministries, businesses, SMEs, and other stakeholders. Participants discussed how to improve the competitiveness of domestic suppliers and promote local sourcing with existing foreign firms in Vietnam. Representatives from the newly awarded USAID Linkages for Small and Medium Enterprises (LinkSME) activity also participated in the event and will follow up on the key findings.  

So what? Fostering SMEs to join global supply chains helps improve business competitiveness, and increase job creation and economic growth. While this event was sponsored by the USAID Governance for Inclusive Growth Program, creating a systemic change in how SMEs link to Global Value Chains is the objective of the $22 million USAID LinkSME activity. The USAID LinkSME activity is also helping to improve Vietnam’s regional competitiveness, by making it a more attractive and predictable investment climate.