Development of Small and Medium Enterprises in Vietnam

Pham Thi Thu Hang

Vietnam Chamber of Commerce and Industry Ha Noi, Vietnam
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Abstract

This paper examines the current development of small and medium enterprises (SMEs) in Vietnam where the phenomena of “missing middle” is becoming critical to accelerate the economic growth based on the efficiency of economy of scale. This hinders the high productivity and participation of SMEs in the global value chain. The weakness in absorptive capacities of new technology also limits the connection between foreign direct investments and domestic enterprises in Vietnam. While Vietnam has opened its economy through, recently, many signed free trade agreements (e.g. EVFTA, TPP, etc.), it is urgent for the Vietnamese government to build a comprehensive supporting policy through SMEs supporting law.

Keywords: entrepreneurship; registered enterprises; SMEs; global value chain
JEL codes: K2, L2, L3, L5


 

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