Nam Dinh Women’s Business Club

Background

There are more than 2,000 small and medium-sized enterprises and about 25,000 household businesses in Nam Dinh Province. Many of the very small ones are operating in rural and remote areas. Women play an essential role. But before 2002, there was no such thing as a women’s business group. There were only the City Private Enterprise Association and similar bodies in rural areas. Some woman entrepreneurs had been active in these business associations, but there was nothing specifically for this growing force in the community.

The first women’s business group in Nam Dinh was established in 2002 as a district ‘club’ in Xuan Truong. Then, with the support of the Dutch Government and the Women’s Union, three more district associations were established. They all then united into a provincial body called the Nam Dinh Women’s Business Club in 2006. It is there for businesswomen of every economic sector in Nam Dinh Province. The Club aims at gathering and attracting women entrepreneurs, creating a forum to exchange, share and learn while protecting the rights and interests of members.

But the Club is still an informal institution and most of their activities are still closely linked with the Women’s Union. Yet with the support of the International Labor Organization-Japan program, the Club has expanded at the grassroots level and has covered a wider geographical scope.

Member services

In addition to offering credit programs, the Nam Dinh Women’s Business Club consults with women entrepreneurs and represents their interests at government agencies on planning issues and policy. They also organize training courses on business administration for women-owned SMEs free-of-charge, and bring members together for sustainable development. This has been a showpiece for the success of the group.

The club also encourages social responsibility with charity programs and development initiatives and in this way increases its influence and reputation with other public and civil society organizations. Members participate in regular meetings to discuss and contribute ideas often holding forums to learn about business administration from other markets as well.

Turning points

Linking for mutual benefit

Though the Club is still relatively new, it has developed a wide network of member clubs in all 10 districts of Nam Dinh Province. It is the only such organization. Most member clubs are run effectively and are closely linked. Member enterprises work in ‘symbiosis’ for greater efficiency and mutual benefit. For instance, a bran mill in the organization sells its byproducts to a poultry farm for food at preferential prices.

The club is also very strong in rural areas where businesswomen face serious difficulties in transportation, market information, market access and business skills. The group has, in fact, reached a point where government and non-government organizations rely on them for implementation in some cases.

In larger affairs, members of the Club have also joined the Asian Regional Program for Expansion of Employment Opportunities for Women-Vietnam Chapter, organized by ILO Japan, and have collaborated with the Swiss Development Corporation (SDC) - Nam Dinh Urban Development project offering trainings in entrepreneurship.

Lessons learned

• The success of the club, as mentioned earlier, is greatly owing to the support of donor projects through various training programs. The local leadership of the club has been able to make good use of this support to establish a solid network of smaller clubs at lower levels.
• The club also benefits from working with the Women’s Union for political support and resources. And in terms of organizational structure, the organization’s smaller ‘modules’ help woman-owned SMEs participate more actively in a less intimidating environment.

• Still, like most other associations, the Club has to answer the question of financial sustainability. Current support from the Women’s Union and donor projects assures operating finds for now, but members also need a new means of generating revenues.

Background

Thanh Hoa Province is in the north central region of Vietnam. In 2007 the population was over 3 million. It has about 3,000 small and medium-sized enterprises and there are about 20 civil society associations in the province, unusually high compared to the rest of the country. Where most women’s civil society business groups tend to come under the Women’s Union, Thanh Hoa has something different: a separate Women’s Business Association.

The idea originated when a local director of a hospitality company and women entrepreneurs sought a single “roof” under which they could exchange experience in business. They also sought a forum where they cold exchange market ideas and support one another. With the support of other associations and agencies, and the initiative of the core group, the Association was founded in September, 2005, at a general meeting. This became the Thanh Hoa Women’s Business Association.

At first, it was difficult. Membership was low and those who did come had to travel far. And funding was scarce. However, with the strong support of the Vietnam Chamber of Commerce and Industry (VCCI) and the Women’s Union, the Association began to gain momentum. They immediately began raising awareness to establish the reputation and image of the association, collaborating with different agencies, organizing management trainings and other key events. Members have since organized several study tours and forums and on marketing, raising capital and management.

It is now a totally stand-alone association. Members have worked hard to attract more businesses and the question of how to bring benefits to members is always the focus of the discussions. They recently added 40 new members to their rolls and are presently at 100.

Member services

The Association has developed four ‘clubs’ at the local level. Together they address managerial skills building and knowledge, market research, business law, enterprise law and investment law. A delegation also went recently to the APEC meeting on women business leaders. This included a trade fair, for which the delegation brought three displays. This offered a rare chance for local businesswomen to learn and to market their project to the world. Association members have also participated in a high profile delegation to Laos, the US, Japan, France, Germany and Austria.

Other issues addressed by Thanh Hoa Women’s Business Association:

• Attracting capital investment.
• Women and economic integration.
• Exchanging experience in business and supporting each other.

As a result of the Association’s work, members are more self-confident, experienced and knowledgeable, and their businesses attract more clients. Their success has caught the attention of the local government, which has since added women to their ranks on the People’s Committee.

Harnessing the power of BAs to reduce poverty

To support poor women, the Thanh Hoa Women’s Business Association has facilitated micro-credit services from the Agriculture and Rural Development Bank, the Social Policy Bank, the National Employment Fund, and international donor projects. The group has disbursed VND 997,247,000,000 worth of loans to 248,436 women to invest in household businesses and stabilize their family lives. And as good corporate citizens, the Association also contributes to charity, raising their profile and setting a good example.

Turning points

The lasting achievement of the Thanh Hoa Women’s Business Association has been to create a healthy business environment where enterprises can cooperate and support each other in looking for markets, tightening organization, developing business channels and streamlining production. What the Association does will promote its image and reputation to attract new members and create more opportunities for women entrepreneurs.

Lessons learned

• Thanh Hoa Women’s Business Association has defined certain specific targets based on the nature of member businesses. These relate to capital sources, business administration capacity and experience, customer relations and market information. But there are still gaps in administration, planning and finances. The office is also small and limited in its capacity and members must still find time away from family. In some cases, businesses lack business information but the Association itself cannot provide what they need.

• Most of the member businesses start with little or no experience so they lack basic knowledge and skills in business administration. The mutual support among the members helps them catch up. They become more self-confident, knowledgeable and experienced in doing business.

• Education and capacity of the Association’s members differ from one area to the next so the group should be specific to the locality. This also creates a chance and an enabling environment for woman entrepreneurs to speak up.

• The support of other related organizations to the Association is important. For instance, the Provincial Women’s Union should have measures to support enterprises, put the activities of the Association in its mission, contribute to development and organize trade promotion for the Association’s members.

Background

Hai Phong Land Transportation Association (HATA) brings together transportation companies in the Hai Phong area. One of its main functions is to reduce competition within the goods transportation sector, to set common freight rates to prevent price ‘dumping’ and participate in removing obstacles in land transportation policies. The organization has one chairman, two vice chairmen, two standing commissioners and one Secretary General, who is in charge of the association’s office. All board members are owners/directors of member enterprises as well. There is one administrative staff member. Revenues come mostly from membership fees based on fleet size. Other income comes from transportation insurance premiums. Otherwise, revenue is difficult to generate.

The organization grew out of the fact that long-distance land transportation companies could not survive in a climate of over-regulation by the government. And corruption was increasing. That finally prompted businesses to come together and create a better environment on their own. Hence, the Association was founded in April 2003, in the context which the Government issued the Decision 15CP on settling violation of land transportation regulation. Decision 15CP.

In the early days, HATA had 81 members. It was able to successfully advocate for the removal of a number of unreasonable regulations on the transportation of commodities. But then many enterprises left the group rather than pay membership fees. By July 2006, 40 enterprises remained, 38 of which were private businesses and two of which were joint-stock companies. Together they managed over 1000 vehicles capable of transporting super-long and heavy loads at about 70% of imported and exported goods via Hai Phong Port.

Member outreach and enrolment is low and there is no specific plan to expand. Enterprises that apply for membership have said that they learned about the group on their own and not from any outreach. As a part of recent advocacy campaigns, however, HATA’s name and presence have grown in newspapers and television, and conferences are common. However, such public presence is more to call for support on policy rather than to attract new members.

Traditionally HATA has not had a long-term strategic development plan. Its operations are mainly directed by the General Meeting annual operating plan. But with the support of the EU’s Vietnam Private Sector Support Program last year, HATA is developing a strategic development plan.

The organization has certain strong points as well, such as full-time staff that are experienced and committed to development. And the vice chairman of the association is enthusiastic and experienced in advocacy. They have also initiated some pilot member support services. But the need remains for a long-term development strategy and diversified services, especially those that create long-term benefits for members.

Member services

Trainings

HATA has cooperated with the Vietnam Chamber of Commerce and Industry (VCCI) in Hai Phong to send members to management trainings with city bodies to organize trainings on transportation safety. Yet these have seen lower HATA member attendance, partly because there is little incentive and no recognition that might make HATA’s members stand out among non-members. HATA also offers an information service, consolidating new policies and regulations into a short, easy-to-understand format.

Other services include legal assistance and consultancy, for example, when members violate transportation laws. This consultancy is normally in the form of legal support to minimize fines. However this type of assistance is “reactive” only and doesn’t provide more long-term benefits to members.

The Association is also preparing a proposal to use 10 ha of land in Dinh Vu for parking, which it will rent to enterprises. Members will enjoy a favorable price or payment scheme.

Turning points

Policy Advocacy

Among the greatest difficulties facing transportation businesses in Hai Phong are an overwhelming regulatory climate and lack of transportation infrastructure. A larger organization would give shippers a common voice. This takes the form of advocacy, most recently for the removal of sub-licenses on trailers, removal of excessive height limits on containers transiting bridges, an increase in the speed limit on motorways, and removal of certain tolls. Advocates follow a comprehensive process, reviewing existing regulations, conducting field investigations, reviewing best practices in other countries, developing proposals, using mass media and conferences to disseminate the proposal, and finally direct dialog with policymakers.

Two typical examples of policy advocacy were to change the position of tollbooths on National Highway No. 5 and to change height regulations for loaded trucks to fit HC40 containers (‘high containers’). Advocacy to change these height regulations for loaded trucks to fit the “high containers” best illustrates the policy advocacy model by HATA.

Reviewing existing regulations and conducting field investigations

In the HC40 campaign, the basic regulation addressed land transportation of ‘super long’ and super heavy goods. ‘Super-long’ goods are over 20m, awidth of over 2.5m and height of over 4.2m from the ground when loaded. Businesses that wanted to transport them had to apply for a special license guaranteeing that trucks would clear bridges by at least 30cm. (Based on the assumption that most ‘flyovers’ in Vietnam are at least 4.5m).

HATA measured the distance between the road and the lowest point of all the flyovers on Highway 5 and found that the lowest one, Niem Bridge in Hai Phong, had the lowest height, of 4.6m. HC40s would pass well under this at normal speed. The Association also proposed increasing the relative height of certain lower flyovers by lowering the road surface as a less-costly alternative to forcing the entire fleet to shift away from HC40 containers.

Reviewing regulations and common practices to develop a proposal

After conducting further field investigations on the HC40 issue, HATA collected information on the regulations and common practices in other countries with similar systems. They pointed to the fact that HC40s are in accordance with international standards at 2.8 to 2.9m. The trailers are produced in accordance with ASEAN standards and imported from Korea, Japan and Taiwan. They also indicated that such trailers and containers are used together in those countries as common practice.

Once they had enough information, they developed a proposal to change the regulation and also recommended lowering the road at certain flyovers. They started a media campaign about the issue in Business Forum Newspaper, Labor Newspaper, Youth Newspaper, Agriculture, Transportation and Traffic, local Hai Phong Newspapers, as well as various programs on VTV1 and Hai Phong Television. They also brought up the issue at business forums by VCCI and persuaded the clients as well as transportation firms to have a common voice.

Dialog with policymakers

The group held dialogs with the Ministry of Transportation in 2003 and 2004 on the issue. Equipped with sufficient evidence to make their case, they were able to influence MOT to change the regulations. Their first point was to ask for removal of the special license in April 2003 and in June 2004 they asked for removal of a ban on HC40s. One week later, MOT signed the decision.

Following-up change

HATA did not stop there. They continued to follow up on the implementation of the new policies to see that all partners, including traffic police and transportation management agencies, were in compliance. Now, other associations have approached them to learn from their experience.

One of the most important benefits which HATA brought to its members is policy advocacy to remove irrelevant legal or regulated barriers to facilitate the operations of members’ businesses. With regards to this matter, HATA played a very strong role as a connecting point between member businesses and policymakers. ”

- Mr. Pham Trong Thinh, Vice Chairman and General Secretary

Lessons learned

• One of the most important success factors for HATA has been collective effort in advocacy. In addition, HATA has played very well the role of liaison between businesses and policymakers. HATA listened to businesses, studied the policies and found a way to reconcile the two sides. As a result, member businesses are more comfortable in the new environment, regulators are more involved in the dialog, and the work of traffic police is easier. No single business would have been able to do this alone.
• Transportation companies need parking and their next project, to secure use of a large tract of land in Dinh Vu as a depot, would allow members to store their containers and trucks at very low cost.
• Another remaining challenge is membership development. To date, many enterprises have sought membership only when unfavorable policies or regulations immediately harm their interests. Then, once they’ve gotten the policy changes, they withdraw to avoid commitment to standard rates, load limits, speed limits, and safety regulations.