Open AccessThe Situation of Small and Medium Enterprise Development in Vietnam
Author(s) -
Ngo Van Vu,
Nguyen Xuan Trung
Publication year - 2020
Publication title -
business and economic research
Language(s) - English
Resource type - Journals
ISSN - 2162-4860
DOI - 10.5296/ber.v10i3.17841
Subject(s) - business , vietnamese , small and medium sized enterprises , soar , industrial organization , finance , commerce , philosophy , linguistics , artificial intelligence , computer science
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.