Small and Medium Enterprise (SME) Development in Vietnam

Abstract

Vietnam has the potential to emerge as a next Asian giant on the economic map of the world, with its phenomenal GDP growth from the introduction of "Doi Moi" in 1986 through to till recently. This growth is a manifestation of the entrepreneurial spirit of the Vietnamese people and the state. The Small and Medium Enterprises (SMEs) sector is the major driver of this growth. However, the same also faces certain challenges that need to be addressed for a sustainable growth of the Vietnamese economy. The paper explores these challenges and suggests possible changes in current policies. It also highlights measures that can assure growth of the SMEs, which are the major contributors to the private organizations.