Small and medium-sized enterprises in Vietnam

In Vietnam, there are many small and medium-sized enterprises. This kind of enterprises usually has a family management model which is quite extensive. It is clear that, because of this model, this kind of company can have some difficulties such as:

  1. they don’t have access to high level technologies
  2. they can have a lack of talents
  3. to find some resources (financial and hr) is not easy

These three main reasons have decelerated the development of these small and medium-sized enterprises in the last few years.

From some data of the Vietnam’s General Statistic Office, in the year 2014 the small and medium-sized enterprises count for 97% of the total number of the enterprises in the country, 40% of the GDP and have provided job opportunities to thousands of people in Vietnam. It is obvious that the small and medium-sized enterprises have achieved substantial development over the past years. Till now, the number of small and medium-sized enterprises continues to increase and their scale continues to grow in recent years. A large proportion of these small and medium-sized enterprises in Vietnam is distributed among commerce, manufacturing, construction and real estate, transportation and warehousing. The considerable development obtained by these small and medium-sized enterprises in Vietnam is closely bound up with the efforts made by the Vietnamese government. The government, in fact, attaches much importance to the development of the small and medium-sized enterprises.

The government has introduced many favourable policies to help these enterprises, to improve their internal and external competitiveness, for example, the small and medium-sized enterprises have some preferential tax policies, and the government has also cut down their land rent and parts of taxes categories. According to the recent report, the government is planning to support the development of these small and medium-sized enterprises through new rules in order to centralize resources to help them in establishing and improving their legal framework. The Law is expected to be submitted to the Congress for deliberation within this year. This Law will focus on regulating the mechanism, promoting the innovation and the alliances, as well as giving value to these small and medium-sized enterprises. Besides, it will also provide supports in finance, in starting up business, in the development of human resources, in land use and in improving technical level etc. The government will also pay more attention to the potential small and medium-sized enterprises and those in the priority industry of the country.

So, if you wish to start a small or medium company, Vietnam can be a good option. To know more about how to do it, please write an email to


This article is intended solely for informational purposes and does not constitute legal advice. Although the information in this article was obtained from reliable official sources, no guarantee is made with regard to its accuracy and completeness.

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