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TARGETED POLICIES
that support women's entrepreneurship can boost
Vietnam's economic growth
International research shows that countries that invest in women's
enterprise development and implement policies to promote their
growth not only witness greater numbers of women-owned firms and a
growth in the share of these firms as compared to national averages,
but also benefit from stronger national economies overall.1
In Vietnam, women-owned businesses currently account for only about
20% of the total number of registered enterprises.2
Empowering and encouraging more women to become involved in the
private sector can have a significant and positive impact on the
country's already dynamic economic performance, which has proven to
be an important force in alleviating poverty. Towards this aim, the
Law on Gender Equality, which is currently being drafted by the
Vietnam Women's Union, will be presented for the first time to the
National Assembly this May. This bulletin discusses the challenges
facing businesswomen as well as measures, including the upcoming
Gender Equality Law, that can promote women's enterprise development
in Vietnam.
A
stronger legal framework for gender equality can encourage women's
enterprise development
Equality between men and
women is enshrined in the Constitution of Vietnam. Legally, men and
women have the freedom to do business and share equal rights in the
areas of property ownership, land tenure, entering into contracts,
inheritance, and civil transactions. However, as in many other
countries, due to both historical and cultural reasons, women
entrepreneurs in Vietnam tend to be disproportionately disadvantaged
when it comes to actually exercising their legal rights. Women's
land tenure is a good example. While the revised Land Law (2003) and
the Law on Marriage and Family (2000) require that land use
registration certificates (LUCs) list the names of both wife and
husband, to date a disproportionate number of LUCs do not contain
women's names.3 This greatly hinders women's ability to
use land as collateral for potential business loans.
The currently drafted Law
on Gender Equality outlines the basic principles of gender equality,
not only in general but in specific areas, including business and
professional development. Specifically, the law affirms that men and
women who start and develop businesses, cooperatives, and household
economic activities must receive equal opportunities and face the
same conditions for accessing funding, resources and markets, and
tax incentive policies. The law also introduces a number of
affirmative measures aimed to narrow the gender gap, including
training opportunities for women. Most importantly, the law aims to
establish an effective mechanism for the enforcement of gender
equality in society. Finally, the law provides that all future
legislation and policies be evaluated for potential gender impact
before being passed
Women
entrepreneurs still face many challenges in setting up and running
their businesses
A survey of approximately
500 women business owners conducted in 2005 by IFC-MPDF found that
women-owned enterprises, particularly SMEs, share many of the
challenges faced by other firms in Vietnam, such as: limited
availability of capital, inadequate market information, ambiguous
rules and regulations, and a shortage of skilled employees.4
Even though limited access to finance is a difficulty common to both
female and male entrepreneurs, businesswomen face more
disadvantages. This is partly because few women entrepreneurs have
names on LUCs, which banks require as proof of collateral, and also
because they tend to have lower levels of formal business planning
skills.
In addition to such
obstacles, women entrepreneurs also report that they confront
gender-specific barriers, including: i) lack of business and
financial management training; ii) insufficient networking
opportunities; and iii) difficulty in balancing work and family
responsibilities. The perceived gender bias in training
opportunities was also confirmed in another 2005 survey (of 4,176
individuals, 46.5 percent of whom were female) on gender issues by
the Vietnam Academy of Social Sciences (VASS), which found that the
percentage of women trained in any form (at school or at work) is
lower than that of men.5 The VASS report also reveals
that fewer women enjoy a regular stream of income than men, and that
women undertake a disproportionate amount of unpaid work (e.g.,
housework) – which excludes them from participation in professional
training and social activities.
The
government and society should recognize that women's enterprise
development contributes to sustainable economic growth
The women business owners
in the IFC survey indicate a strong desire for more goverment
policies and programs that specifically focus on women and
entrepreneurship. They recommend that in the upcoming Gender
Equality Law and subsequent implementation regulations, special
consideration be given to promoting women's enterprise development.
Particular emphasis should be placed on gender-specific business
education and training, on targeted loans for female entrepreneurs,
and on support for women's networks and forums. Also, the women
surveyed strongly favor the establishment of a special government
advisory board that handles women's business development issues, so
that their voices can be better heard in ongoing policy
deliberations.6 Ultimately, what businesswomen in Vietnam
would like to see is more public support for women's
entrepreneurship.
International research has
shown that government investment in women's enterprise development
generates solid economic benefits for the entire country, and some
governments have officially recognized this by linking economic
development with gender equality.7 A recent gender and
growth assessment study undertaken in Uganda found that legislated
gender inequalities reduced annual GDP growth by approximately
0.2%.8 Aware of the potential contribution of women-owned
enterprises and of the need for greater participation by women in
their economies, a number of nations have recently adopted a
systematic approach to improving their respective investment
climates. South Korea promulgated its Act for Assistance of Women
Entrepreneurs in 1999. In Canada, a Task Force on Women
Entrepreneurs examines the unique challenges faced by women
entrepreneurs and advises the Prime Minister on how the federal
government can advance their contribution to the Canadian economy.
In the United Kingdom, the Strategic Framework for Women's
Enterprise, which was developed in 2003 sets out a collaborative and
long-term approach to women's enterprise development. These
initiatives may provide useful policy lessons for Vietnam. It is
time to look at this issue more strategically and thoroughly so that
Vietnam can fully take advantage of women's socio-economic
contributions.
(1) A. Lundstrom and Stevenson, L., On
the Road to Entrepreneurship Policy, Swedish Foundation for Small
Business Research, 2002.
(2) According to the Vietnam Women Entrepreneurs Council (VWEC)
(3) Asian Development Bank (ADB), Vietnam Gender Situation Analysis,
2005. In 2000, around 10-12 percent of Land Use Certificates (LUCs)
were issued under a woman's name (Socialist Republic of Viet Nam,
2005b). As a result of a World Bank-funded pilot project, another
35,000 new LUCs containing the names of both husband and wife in 20
communes across the country were issued in 2003-2004. However, at
the present time there are no updated statistics on the percentage
of LUCs throughout the country that specify a woman's name.
(4) International Finance Corporation (IFC), A National Survey of
Women Business Owners in Vietnam, March 2006. This is a survey
jointly conducted by IFC's Gender Entrepreneurship Markets (GEM)
initiative and the Mekong Private Sector Development Facility (MPDF).
(5) Vietnam Academy of Social Sciences, Gender survey at household
level, 2005. In terms of 'professional skills,' the VASS survey
reported that 16.3 percent of men had acquired skills through school
education (as compared to 9.9 percent of women) and that 13.9
percent of men had on the job training (as compared to 9.7 percent
of women).
(6) IFC, A National Survey of Women Business Owners in Vietnam,
March 2006
(7) A. Lundstrom and Stevenson, L., On the Road to Entrepreneurship
Policy, 2002
(8) Amanda Ellis, Claire Manuel and C. Mark Blackden, Gender and
Economic Growth in Uganda: Unleashing the Power of Women, World
Bank, 2005. |
