OECD Studies on SMEs and Entrepreneurship SME and Entrepreneurship Policy in Viet Nam

Introduction

This publication presents the findings of the OECD review of SME and Entrepreneurship Policy in Viet Nam. It offers an in-depth examination of the performance of small and medium enterprises (SMEs) and entrepreneurship in Viet Nam, the quality of the business environment, and national policies in support of new and small businesses.

Economic Context

The report shows that Viet Nam is one of the most globally integrated economies in the world, building its solid growth performance on the attraction of foreign direct investments and export promotion. Viet Nam's business environment has considerably improved in recent years, although important reforms are still needed in certain policy areas.

SMEs and Entrepreneurship

Viet Nam's SMEs contribute to national employment and national GDP proportionally less than in the OECD area, although official statistics do not take into consideration the large informal sector that mostly consists of self-employed people and micro-enterprises. Viet Nam's SME and entrepreneurship policies are relatively new, dating back to the early 2000s.

Policy Milestones and Priorities

In this respect, the 2018 SME Support Law is an important milestone which may help address some of the challenges that are holding back the development of a more vigorous domestic enterprise sector. Key policy priorities in this regard, building better business linkages between multinationals and local enterprises and stronger business development services, are the subjects of two thematic chapters of the report.