1. GTZ SME Promotion Project Updates of New Initiatives Corinna Kuesel Chief Technical Advisor GTZ SME Promotion Project 19 Nov 2004

2. With PPP Integrated in all Component SME Promotion Programme: 4 Strongly Integrated Components SME Policy & Enabling Environment for Business Competitiveness of selected Value Chains & Sectors Advanced Technical Services OUR APPROACH IN Local Economic Development We are currently a bit more advanced with the SME Policy & LED components with some activities initiated in these two fields…

3. Our 5 Pillars in the Strategy for an Enabling Environment for SME & PS Direct Policy Advices Direct Advices to the making of the laws (through short & long term experts) e.g. Enterprise Law, Investment Law, SME Action Plan, etc… Strengthening of Business Law Making Capacity Introduction of RIA Exposing law makers to int’l best practices & norms Training of law Makers Institutional Capacity Strengthening Public Consultation in Biz Laws Improvement of consultation methods Strengthening Policy advocacy role of BMOs & VCCI, Innovative Consultation methods (e.g. Internet-based) Support to Implementation of Biz Laws/ SME Progm. Policy Dialogue Cooperation with mass media Support to Implementation of Gov’t’s SME & PS programs Focus on Provincial Biz Env’t Make Enabling Biz Env’t an integral part of LED effort Support to law implementation in provinces Provincial PS Action Plan Objective: An Improved Business Environment for Private SMEs

4. With Strong Participation from Domestic and Foreign Business Association (e.g. GBA, EuroCham, Young Biz Asso.) Unified Enterprise Law and Common Investment Law New Initiatives for a Better Investment Climate for Private Sector Regulatory Impact Assessment with Assessment of Enterprise Law with Internet Based Forum For Policy Consultation

5. E.g. - Implementation of RIA Key partners: PMRC/ UNDP/ GTZ Started: August 2003 Final report: Feb. 2004

6. E.g. - Enabling Environment at Provincial Level Policy-dialogues b/w local governments & biz community on implementation of laws & regulations (land law, decree on associations, guiding principles of UEL). Strengthening the roles of local institutions: local gov’t, VCCI, biz associations. Initial discussions and planning with national & provincial institutions on next steps.

7. Key Elements of the Local Economic Development Support to dialogue forums between public and private sector, for joint strategy development and joint action Strengthening personal capabilities in different areas/ institutions Improving political and administrative framework conditions at the provincial level (policies/local governance) Strengthening promotional structures and strategies for priority sectors Investment and business start-up promotion

8. Overview of LED Activities 2003-2004 Dec-Mar 03Jul-Sep 04Nov-Dec 042005 3-5 day- Awarenes s-raising Workshop s Training in Germany for Multipliers & Implemen -tation of Planned Activities Study tour Feedback WS Started LED network Club & concept building First PACA Training and 2 parallel exercises planned in the South Jul -Nov 03 Introduce d concept of LED to national & provincial actors 1 + 3 day WS

9. Example of LED activities in Mekong Delta Provincial LED road map includes:  SWOT-Analyses of tourism industry e.g. at Phu Quoc Island Potential Activity: building a national tourism center  Exploring the value chain of the export seafood manufacturing industry