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SME Growth and Survival in Vietnam: Did Direct Government Support Matter?

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Author Info

  • Henrik Hansen

    (Institute of Economics, University of Copenhagen)

  • John Rand

    (Institute of Economics, University of Copenhagen)

  • Finn Tarp

    (Institute of Economics, University of Copenhagen)

Abstract

In this paper we provide evidence on the survival and growth of small and medium-sized enterprises (SMEs) in Vietnam relying on three partly overlapping enterprise surveys sampled during the period 1990-2002. Our empirical results indicate that classical determinants of performance including firm age, firm size, location, ownership, degree of capital intensive production and the type of activity are also important in Vietnam. In addition to the traditional indicators we analyze the effect of government support. Government credit assistance during start-up contributed significantly to the growth of Vietnamese SMEs in the late 1990s, but the importance of this kind of support may be diminishing as new firms do not seem to benefit from this form of support. In contrast, the importance of legal advice appears to be increasing.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 04-13.

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Length: 16 pages
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:kud:kuiedp:0413

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Related research

Keywords: SME dynamics; government policy; Vietnam;

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References

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  1. Soderbom, Mans & Teal, Francis, 2004. "Size and efficiency in African manufacturing firms: evidence from firm-level panel data," Journal of Development Economics, Elsevier, vol. 73(1), pages 369-394, February.
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Citations

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Cited by:
  1. World Bank, 2005. "Vietnam Business : Vietnam Development Report 2006," World Bank Other Operational Studies 8314, The World Bank.
  2. Oostendorp, Remco H. & Trung, Tran Quoc & Tung, Nguyen Thanh, 2009. "The Changing Role of Non-Farm Household Enterprises in Vietnam," World Development, Elsevier, vol. 37(3), pages 632-644, March.
  3. John Rand, 2007. "‘Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing’," Small Business Economics, Springer, vol. 29(1), pages 1-13, June.
  4. Gregory J. FLEET, 2012. "Growth Of Broadband And ICT Adoption By SMEs In Atlantic Canada," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(3), pages 9, June.

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