The Can Tho Business Association

Background

(CBA) is a voluntary, non-profit, multi-sectoral organization. State-owned or private, large or small, Vietnamese or foreign, all are welcome. CBA was founded when Can Tho businesses perceived a need to have their own ‘proving ground’. They held the founding meeting on n January 28th, 2005. Shortly after CBA become the official partner of Business Edge (BE), a project of the Mekong Private Sector Development Facility (MPDF) to provide training courses to businesses in Can Tho and surrounding areas.

All of the members were company directors or business owners, both men and women, and soon proposed the idea to gather again and exchange ideas. They then founded ‘Business Owners Club’ as an organization under CBA. They also set up the ‘Business Owners Joint Stock Company’ in 2006. Though women members account for only 15% of CBA’s 159 members, they play an important role, especially in training and dissemination of information.

Major operating principles are voluntary self administration and financial independence. CBA is a self-funded association receiving no state support. All operating costs are financed by member service fees and contributions from businesses or individuals. Membership fees account for 40% and are contributed voluntarily every year at rates from VND 500,000 to 5,000,000. The other 60% mainly comes from trainings.

CBA’s executive board includes a president, five vice presidents, five executive members and a secretary general. The Association also has an auditing board. Five of the twelve executive members and one of three members of the auditing board are women. The General Secretary, who has executive charge of the office, is an SIYB

Member services

One of the major characteristics of CBA’s services is its concern for the development of women entrepreneurs. The Association has organized the Conference to Celebrate International Women’s Day, March 8th, in cooperation with MegaScience. It also held the conference, “Management Experience for Women Entrepreneurs” with backing from the Department of Culture and Information and the U.S. Embassy. They sent members as well to the Women Entrepreneurs Exchange and Business Visit along with the Ho Chi Minh City Young Business Association and Hanoi Young Business Association.

CBA effectively taps members for support and collaborates with other associations, for example, on developing its website. The Association has also partnered with the Ho Chi Minh City Young Business Association and the Hanoi Young Business Association to offer conferences, business visits and exchanges via networking, cultivating linkages with government bodies as well. And in keeping with best practices for a business association, CBA offers trainings, disseminates vital information, supports trade promotion and advocates for the legal rights of its members.

Traditional, passive teaching methods have strong roots in Vietnam, and previous management trainings in Can Tho were no exception. While many trainers now offer a dynamic learning environment, some have relied on this passive teaching method with the result that participants lose interest and don’t retain the material.

“My staffs don’t want to go to the class. They said: Studying at the class is very ‘sleepy’ and cannot apply in reality. I used to send some staffs to some training courses and they got bored .”

-Director of Can Tho Branch of Marine Bank

Participants began citing a need for a more dynamic, participatory environment, and CBA resounded with changes, where the participants were more active and the communication was from both sides. The Association has partnered with Business Edge (BE), a project of the International Finance Corporation/Mekong Private Sector Development Facility (IFC/MPDF), to provide businesses with a new ‘problem solving’ approach. BE supports small and medium-sized businesses in developing their capacity for more competitive advantages. The program develops materials on business management, trains trainers and selects partners to provide businesses with services that involve participants rather than simply lecturing.

BE has developed its courses via several steps. First, content experts will visit SMEs to identify common problems. Then they develop content that focuses on individual solutions. These solutions must pass a test phase before use on the market. As the courses are very much problem-based, businesses lose less time in studying theory to find solutions.

“I studied this topic (Distribution) previously in a class held by an institution. However, after these training courses, I see what I can apply in reality.”

- Participant in a CBA marketing course based on the BE learning model

For the BE programs, CBA applies a ‘three-dimensional’ interactive training method via group discussion, case studies, role plays and games. Participants are encouraged to be proactive in coordinating with other participants under trainer instruction. They draw practical lessons and must develop an action plan by the end of the course. Trainers must be highly skilled in management and facilitation and must have practical management experience in the field. BE also has requirements for partners, in logistics for training courses, facilities and equipment as well as minimum and maximum number of participants and revenues per course. Partners must meet these requirements.

And now, in addition to the BE trainings, CBA also organizes its own trainings using the BE model. These have proven highly effective for entrepreneurs concerned with immediate, practical application.

“I am a farmer who runs a business. Previously, I thought I was very intelligent and not worse than anyone in business. But after attending this training course (Marketing - Money or Intelligence) I saw many problems which I needed to re-think, and made certain changes.”

- Participant in a marketing program

The reward for CBA is that members return for the service and the group will continue offering these trainings. According to surveys, 80 to 90 per cent the participants in BE-based and CBA courses are satisfied. Number of courses per year has now risen to 30.

“In comparison with the passive methodology of learning, this active participative training forces the participants to look directly at the problems to share and discuss, which means they don’t forget it when they leave the class.”

- Mr. Tran Kim Dinh, Director of the Mekong Advertisement and Tourism Information Company

Lessons learned

• Direct attention to promoting women entrepreneurs truly opens the field. Women members feel that they equally benefit from the association. They, in turn, are more encouraged to participate.
• Traditional, passive teaching methods may not be appropriate for the demanding, dynamic business environment.
• By providing high-quality training to members, CBA meets the common capacity building needs of businesses in Can Tho. Before CBA, VCCI Can Tho was the only place in Can Tho to provide short training course to businesses. In that sense, CBA acts as a common organizer to determine the need, find the providers and organize courses. The association has since decided to focus mainly on training to ensure that resources are focused where they make the most difference.
• CBA events bring together members and help businesses to expand their networks. The Association’s network allows it to connect its members with other enterprises from other associations, such as the Ho Chi Minh City Business Association, An Giang Business Association, Tien Giang Business Association and Ho Chi Minh City Young Business Association.

Yet challenges remain, in providing training courses on L/C, international payments and international trade law. And for the future, members have asked for more customized training courses and more follow-up to help them with specific problems. The group has responded by starting to offer post-training support for members who have participated in its training program.