Nam dinh small and medium sized enterprise association

Nam Dinh Small and Medium-sized Enterprise Association

Nam Dinh Small and
Medium-sized Enterprise
Association
Bởi:
The Online Management Training Company

Nam Dinh Small and Medium-sized Enterprise Association
Incorporating to serve members
Background
Nam Dinh is an agricultural province in the south of the Red River Delta. It has a
population of about 2 million. Currently, there are about 2,000 enterprises in operation.
Some are large ‘equitized’ state firms but most are small and medium-sized enterprises
in agricultural production, small scale metalwork, handicrafts, garments and textiles.
Nam Dinh was once centre of the textile industry during the subsidy era, but when
subsidies ended the province suffered serious unemployment and the social problems
that come with it.
From 2001 to 2004 GDP was 7.3%, much lower than the average in the Delta (10.5%),
and Nam Dinh ranked second lowest (above Thai Binh). It was also near the bottom of
GDP, at VND 4.47 million per year.
Yet despite this, private enterprise has grown 27.9% on average since 2001 while
state sector growth has been just 14.2%. In 2001, local enterprises partnered with
the Nam Dinh Urban Development Project and the Swiss Agency for Development
and Cooperation (SDC) to found the Nam Dinh Private Enterprise Association. Just
58 businesses joined at first and growth remained sluggish due to limited resources;
members repeatedly cited a need for greater coordination. So on April 24th, 2006, the
Nam Dinh Small and Medium Enterprise Association (NADISME) was established
as a result of non-stop lobbying and encouraging of businesses and local authorities.
The Association fosters cooperation networking and mutual support. It also improves
efficiency, protects the legal rights of members, connects SMEs with government

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Nam Dinh Small and Medium-sized Enterprise Association

authorities, improves business policy and fosters deeper integration into the
international economy.
Member services
NADISME offers support and consulting services for SMEs. With support from SDC/
Nam Dinh Urban Development Project, the Association has conducted a number of
trainings on business law, preparation for WTO membership, production management,
marketing and best practices. It has also bridged the public and private sector. In 2006,
NADISME brought together the provincial Department of Planning and Investment,
Department of Taxation, Department of Natural Resources and Environment, as well as
other agencies to meet with the business community. The dialogue provided a platform
for free and direct communication with policymakers.
Corporate responsibility is another of the Association’s strong points and members
have organized trainings for disabled entrepreneurs to exchange information and raise
awareness of government policy. And with the support of the Nam Dinh Urban
Development Project, NADISME also posts vital information on www.nadisme.org.vn,
although the site is yet to be finished.
But while trade promotion and business linkage are core elements in the group’s
charter, members have yet to implement them formally. Currently, these issues are
addressed mostly by the entrepreneurs themselves without any active support from the
Association.
Fact Sheet
Name of
association:

Nam Dinh Small and Medium-sized Enterprise Association

Year of
establishment

June 24, 2006

Number of
members

Over 325 businesses2 district branches

Type of
organization

General Business Association

Term of
General
Meeting

5 years

Organization
and staffing:

Executive Board: 1 Chairman, 4 Vice Chairmen, 13 commissioners

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Nam Dinh Small and Medium-sized Enterprise Association

Services
Provided

- Protection of the legal interests of its members.- Proposal and
recommendation for policies.- Dialogue between businesses and
local authorities.- Training on business management topics.Business consultancy on business establishment and restructuring.

Services and
Facilities

Business Development Consulting Company

Line
Membership

Vietnam SME Association

Representative Mr. Tran Manh Luu, Chairman
Contact

Address: No 172 Han Thuyen St, Nam Dinh CityTel:
0350.647890 Fax: 0350.647890 Webstie:


Turning points
At its inception, NADISME found that it needed an operating budget. But member dues
were insufficient, so it established a business consulting company. This was a jointstock company offering consultancy, training, and health services for businesses. In the

future it will focus on health care, offering medical check-ups and health insurance.
It will also open a clinic for member staff and monitor their health. This sort of
onsite service has proven to be more affordable and convenient, and it meets WTO
requirements on corporate responsibility.
The Association also provides the other following services:
• Supports establishment of new businesses (drafts company charter, business
registration, tax registration, and official stamp).
• Trainings on selected management topics as requested by clients.
• Health care services for workers in factories, regular health check-ups, health
insurance, emergency.
•
To date, the company has been successful. There are more clients seeking services. This
helps build trust in the Association while guaranteeing an income to finance operations.
Human resources and local government support are the strongest points for NADISME.
A former governor of the State Bank (now chairman of the Vietnam Association of
Businesspeople) has endorsed it. The group has also won favor with the Alliance
of Cooperatives, the Department of Taxation, the Department of Natural Resources
and Environment, and especially the Department of Planning and Investment. It has
now established sub-associations in three districts and one member has been honored
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Nam Dinh Small and Medium-sized Enterprise Association

among 100 typical enterprises receiving the Thanh Giong Cup. And at the lower
level, NADISME has helped members explore more efficient use of materials, helping
enterprises in Hai Hau District re-process waste materials from the production of
mushrooms for cooking and medicinal purposes.
Lessons learned
• Public relations are still weak for NADISME and the group has just established

a website to promote itself, although the site is yet to be completed. Members
have cited a need for more interesting articles and enhanced advertising. The
Association also needs to cultivate a deeper relationship with newspapers.
• Membership meanwhile, is, at 325, modest for a provincial level organization
in an area with more than 2,000 businesses. Most current members are situated
in the city or around district townships and efforts to reach remote and isolated
areas containing more enterprises could be stepped up. Within the first six
months of 2007, the Association enrolled only 20 members due almost entirely
to personal encouragement by the chairman.
• With the support of the government and donor projects and with earnings from
services, the Association can maintain and expand its programs, but human
capacity and strategic development remain questions.

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