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COVER STORY

Disadvantages magnified

VET reached out to female business and agency leaders to gather
their thoughts on the plight of women during Covid-19.

Covid-19 caught the world by surprise. as our clients has embraced the unprecedented by European venture capital (VC)-backed com-
EY Vietnam has confronted unprece- situation and made continued efforts to seize panies went to female founding teams. On the
dented challenges and opportunities. We can’t new opportunities opened up by new market government side in Vietnam, certain solutions
control the forces of nature, but we can dynamics, especially digital business. We have should be taken into consideration to assist
control how we respond. EY Vietnam as well been striving to implement various measures women-owned businesses. Regulators and
amid the unpredictable situation surrounding banks could open dialogue with female entre-
Covid-19. Since EY Vietnam’s employees have preneurs to understand their businesses better
always been our utmost priority, we have and address their needs and concerns. More-
taken decisive action on travel guidance, pro- over, the government should enhance access
vided instructions for ongoing engagements, to affordable broadband networks for women
and anticipated the safety precautions nec- in rural areas, to help their products be dis-
essary to protect our people. We also placed tributed to a larger market; continue providing
focus on our Business Continuity Plan to Covid-19 financial relief programs and devel-
ensure we fulfil our responsibilities to clients, oping other finance programs targeting
including upgrading technology platforms women-owned businesses; and offer loans
for working remotely, and communicating through analyzing new sources of data to
with regulators on arising matters, etc. Women enable a smooth application process, especially
Ms. Duong Nguyen, are excluded financially in some parts of the for SMEs without credit scores, steady cash-
Financial Services Leader, EY Vietnam
world. In 2018, only 7 per cent of funds raised flow, or the required collateral. %

Women entrepreneurs in Vietnam have ernment, the private sector, and banks, and cumstances are having a disproportionate
a strong and long tradition and make of course entrepreneurs, as Vietnam continues gender impact and respond appropriately.
substantial contributions to the development to struggle with the ongoing pandemic. We This is not always about responding with
of the country’s economy. Women own about know that small businesses are more likely to additional help. It is also a matter of raising
21 per cent of its SMEs, post growth rates the be affected and that women may be impacted awareness with banks about the market oppor-
same or even higher than male-owned busi- to a greater extent because they have businesses tunity they may be missing in not fully serving
nesses, and have expectations of future growth in sectors that are facing major problems, like women-owned businesses as customers. %
that are actually stronger than male-owned tourism for example, or are subject to the
businesses. Our study of the Vietnam market effects of social distancing. One thing Vietnam
in 2017 found that women entrepreneurs can do both now as a Covid response and in
expect to grow 20 per cent year-on-year, general is to be clear about the definition of
which is quite high. Unfortunately, we also “women-owned businesses”, which is defined
saw that women entrepreneurs are under- in the Law on Support for SMEs as one where
served by banks, with only 37 per cent of one or more women own 51 per cent of
women-owned businesses having access to charter capital and a woman is Executive
bank loans in the two years prior, compared Director, but which is lacking in the Law and
to 47 per cent of male-led businesses. Fewer in other provisions the government has intro-
women are accessing lending, they are less duced, and also expect or encourage banks
satisfied with the loans they do get, and they to collect sex disaggregated data on their cus- Ms. Amy N. Luinstra,
tend to get less than they seek. This is a very tomers. The second thing is to analyze that Program Manager, Gender, East Asia and
Pacific, International Finance Corporation (IFC)
important moment for action from the gov- data so we can recognize when policy or cir-

Many people mention the losses in entertainment and shopping services for brands
tourism and retail from Covid-19, as they and to help the retail industry be able to expand
are quite clear to see. But the pandemic has without physical stores and operational costs.
also had a tremendous impact on the Media & Covid-19 taught me to digitalize internal
Entertainment industry. The METUB Network processes and have full trust in my team. We
has seen both negative and positive impacts are fortunate not to have had to lay-off anyone.
from the pandemic in business activities as METUB’s plan in 2021 is to introduce new
well as internal operations. We have not seen services and tools to help bring alternate
any decline in content creation or content income sources in addition to advertising and
consumption. However, revenue at our com- sponsorship sources for our partners. As a
Ms. Hoang Thi Tu Phuong, pany has fallen, as many advertisers are also female entrepreneur, I’d love to get connected
CEO, METUB Network experiencing trouble. Our company has seen with the “entrepreneurial sisterhood” to learn
an opportunity, however, to provide livestream from them and share my own experience. %

20 | VIETNAM ECONOMIC TIMES | MARCH 2021