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The Situation of Small and Medium Enterprise Development in Vietnam

Author

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  • Ngo Van Vu
  • Nguyen Xuan Trung

Abstract

In the period of 2010-2017, the number of small and medium enterprises (SMEs) of Vietnam tended to be increased, accounting for about 98% of the total number of Vietnamese enterprises by the end of December 2017. Vietnam's SMEs are mainly private enterprises operating in the field of commerce and services as well as industry and construction, mostly concentrated in the Southeast and the Red River Delta. In the research period, micro enterprises had experienced a sharp increase in the loss rate, making the loss rate of the whole enterprise soar. In addition, SMEs were increasingly dependent on loans and especially small businesses had less access to bank loans as well as deferred purchase. However, Fixed-charge coverage ratio of SMEs had been improved and the gap between large enterprises and small enterprises had been narrowed.

Suggested Citation

  • Ngo Van Vu & Nguyen Xuan Trung, 2020. "The Situation of Small and Medium Enterprise Development in Vietnam," Business and Economic Research, Macrothink Institute, vol. 10(3), pages 337-348, September.
    • Handle: RePEc:mth:ber888:v:10:y:2020:i:3:p:337-348
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    More about this item

    Keywords

    SMEs; Development; Vietnam;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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