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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)

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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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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
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Handle: RePEc:kud:kuiedp:0413

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Keywords: SME dynamics government policy Vietnam

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. John Rand, 2004. "Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing," Discussion Papers 05-01, University of Copenhagen. Department of Economics. [Downloadable!]
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