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Medium-Sized Enterprises in the Socialist Republic of Vietnam: How to Grow in the Future?

Medium-Sized Enterprises in the Socialist Republic of Vietnam: How to Grow in the Future?
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Author(s): Thang Chien Nguyen (Vietnam Institute of Economics, Vietnam), Hoang Van Tran (Vietnam Institute of Economics, Vietnam) and Huan Minh Luong (Enterprise Development Foundation, Vietnam)
Copyright: 2019
Pages: 19
Source title: Strategic Optimization of Medium-Sized Enterprises in the Global Market
Source Author(s)/Editor(s): Milan Vemić (DAI Europe, Serbia)
DOI: 10.4018/978-1-5225-5784-5.ch002

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Abstract

Based on Vietnam's enterprise census data this research analyses development of Vietnam's medium enterprises for a period 2007-2015, assessing their economic performance, efficiency, and elaborating their evolution over the period. The research found that there is tendency of shrinking and decreasing efficiency of medium enterprises (MEs), very few could be able to grow to join “large enterprises,” while majority had to exit market or shrink to fall into “small and micro enterprises.” The research also shed light on what factors explain economic performance and evolution of MEs, and found that macroeconomic management, ownership forms, economic sectors, size of MEs, and some other factors matter for their performance and evolution. Some policy implications for the next period drawn from the analysis and put in the new context of development are improving macroeconomic stability, creating level playing field between private, state-owned enterprise (SOE) and foreign direct investment (FDI), rebalance priority toward agriculture, improving implementation of MEs supporting policies.

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