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.
Highlights
By the end of 2017, Vietnam's small and medium-sized enterprises (SMEs) accounted for about 98.86% of the total number of operating businesses, of which medium enterprises occupied of only 0.57%, proportion of small enterprises was 25.84% and the remaining 72.45% was micro enterprise
In the SME sector, mainly micro and small enterprises, medium enterprises account for a low proportion
The majority of Vietnamese enterprises are small, micro and medium-sized enterprises, and this proportion has increased in recent years
Summary
By the end of 2017, Vietnam's small and medium-sized enterprises (SMEs) accounted for about 98.86% of the total number of operating businesses, of which medium enterprises occupied of only 0.57%, proportion of small enterprises was 25.84% and the remaining 72.45% was micro enterprise (chart 1). The importance of small and medium-sized enterprises is getting bigger as the scope of activities is expanded. This is reflected in the increasing number of enterprises, the fields that enterprise operating and exist as an indispensable part of. SMEs play an important role in economic growth, mainly creating job and generating income for workers, helping to mobilize social resources for development investment, poverty reduction, etc. Vietnamese SMEs have created over one million jobs, used up to 51% of social labor and contributed more than 40% of GDP to the country (Ho Chi Minh National Academy of Politics, 2018)
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