Microsoft Word - FMVIE09005 Report final draft-2

Gender related Obstacles To Vietnamese Women Entrepreneurs

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RESTRICTED DECEMBER 2010

Gender related Obstacles

To Vietnamese Women Entrepreneurs

Technical Report*

Prepared for the UN-GOV Joint Programme on Gender Equality, by the United Nations Industrial Development Organization (UNIDO)

in cooperation with the Viet Nam Chamber of Commerce and Industry (VCCI), and the funding of MDG Achievement Fund (MDGF),

Project FM/VIE/09/005

Prepared by:

Ms. Aime Hampel-Milagrosa, Lead Researcher and Primary Author

with Mr. Pham Van Hong, National Consultant

Mr. Nguyen Anh Quoc, National Consultant Mr. Nguyen Tri Thanh, National Consultant

United Nations Industrial Development Organization Vienna

*This document has not been edited

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Disclaimer The views expressed herein are those of the author(s) and do not necessarily reflect the views of the United Nations Industrial Development Organization (UNIDO). This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries or its economic system or degree of development. Designations such as developed, industrialized and developing are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. The opinions, statistical data and estimates contained are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO. Although great care has been taken to maintain the accuracy of information herein, neither UNIDO nor its Member States assume any responsibility for consequences which may arise from the use of material. This document may be quoted with prior agreement by VCCI and UNIDO

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TABLE OF CONTENTS

ACKNOWLEDGEMENTS ..................................................................................................... 6ABBREVIATIONS .................................................................................................................. 7LIST OF TABLES ................................................................................................................... 8LIST OF FIGURES ................................................................................................................. 9LIST OF ANNEX TABLES .................................................................................................. 10EXECUTIVE SUMMARY .................................................................................................... 11 1. INTRODUCTION .............................................................................................................. 17 2. THEORETICAL PERSPECTIVE OF THE STUDY ..................................................... 19

2.1 Framework for Institutional Analysis of Vietnamese female entrepreneurship ............ 192.2 Womens internal perceptions (attributes of the entrepreneur herself) .......................... 222.3 The World Banks Doing Business and the Economics of Institutions ......................... 24

2.3.1 The five Selected Doing Business indicators used for the research ........................ 252.3.2 Criticism against Doing Business ........................................................................... 272.3.3 Linking regulatory reform with Vietnamese tradition ............................................ 28

3. VIETNAMESE TRADITION, LAWS AND FEMALE ENTREPRENEURSHIP ...... 28

3.1 Vietnamese Tradition ..................................................................................................... 283.2 Vietnamese Laws affecting womens business environment ......................................... 293.3 Development of female Equality and Entrepreneurship in Vietnam ............................. 30

4. METHODOLOGY ............................................................................................................. 33

4.1 Selection of Research areas ............................................................................................ 334.2 Sampling procedure ........................................................................................................ 344.3 Data-gathering and analysis ........................................................................................... 35

5. OVERVIEW OF RESULTS ............................................................................................. 37

5.1 General Description of survey respondents ................................................................... 375.2 Starting a business for Vietnamese women .................................................................... 40

5.2.1 Traditional factors influencing Starting a business ................................................. 415.2.2 Regulatory factors influencing starting a business .................................................. 455.2.3 Internal factors influencing starting a business ....................................................... 47

5.3 Running a business for Vietnamese women .................................................................. 485.3.1 Traditional factors influencing running a business ................................................. 495.3.2 Regulatory factors influencing running a business ................................................. 505.3.3 Internal factors influencing running a business ....................................................... 57

5.4 Doing Business and respondents policy suggestions .................................................... 665.4.1 Knowledge about the Doing Business .................................................................... 665.4.2 Policy recommendations from Vietnamese entrepreneurs ...................................... 68

5.5 Assessment of Laws and Decrees .................................................................................. 695.5.1 Conformity of Laws and Decrees with Law on Gender Equality ........................... 695.5.2 Assessment of Laws and Decrees in the context of the projects results ................ 70

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6. CONCLUSIONS, POLICY IMPLICATIONS and FURTHER STUDY ..................... 74 6.1 Conclusions .................................................................................................................... 74

6.1.1 Conclusions with regard to Traditional gender-based obstacles in Starting a business ............................................................................................................................ 756.1.2 Conclusions with regard to Regulatory gender-based obstacles in Starting a business ............................................................................................................................ 756.1.3 Conclusions with regard to Traditional gender-based obstacles in Running a business ............................................................................................................................ 766.1.4 Conclusions with regard to Regulatory gender-based obstacles in Running a business ............................................................................................................................ 77

6.2 Policy Implications ......................................................................................................... 776.2.1 Policy Implications to improve the regulatory business environment .................... 786.2.2 Policy Implications for the Vietnamese National Strategy on Gender Equality (2011-2020) ...................................................................................................................... 796.2.3 Policy Implications for the Vietnamese SME Development Plan (2011-2015) ..... 82

6.3 Study Limitations and Suggestions for further study ..................................................... 85 7. REFERENCES ................................................................................................................... 87 8. ANNEX TABLES ............................................................................................................... 95

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ACKNOWLEDGEMENTS This study was prepared by the United Nations Industrial Development Organisation (UNIDO) as part of the UN-Government of Viet Nam Joint Programme on Gender Equality (JP) in cooperation with the Viet Nam Chamber of Commerce and Industry (VCCI), through the Vietnamese Women Entrepreneurs Council (VWEC) and the funding of MDG Achievement Fund (MDGF). The study contributes to work under JP output 2.2. Improved Partnership between mass organizations and government agencies to promote women economic empowerment, for which VCCI collaborates with UNIDO and the International Labour Organization (ILO). The lead researcher and primary author is Ms. Aime Hampel-Milagrosa, with the contributions by Mr. Pham Van Hong, Mr. Nguyen Anh Quoc, and Mr. Nguyen Tri Thanh. Three regional and one national consultation workshops were organized by VCCI/VWEC and the UNIDO office in Vietnam. Valuable comments were provided by Ms. Tran Thi Thuy, Chairwoman of VWEC, Ms. Nguyen Thi Tuyet Minh, Vice Executive Chairwoman o