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Enterprise Growth and Survival in Vietnam: Does Government Support Matter?

Author

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  • Henrik Hansen
  • John Rand
  • Finn Tarp

Abstract

This paper analyses whether direct government assistance during start-up and other forms of interaction with the state sector have influenced the long-run performance of small and medium-sized manufacturing enterprises (SMEs) in Vietnam. Using three partly overlapping surveys during the period 1990-2000, we find strong effects on firm dynamics from interaction with state institutions. Enterprises which have the state sector as their main customer perform better. This is so for both survival and growth. Moreover, temporary tax exemptions during firm start-up had a separate and positive influence on long-run growth for non-household enterprises and initial credit support seems to benefit rural firms.

Suggested Citation

  • Henrik Hansen & John Rand & Finn Tarp, 2009. "Enterprise Growth and Survival in Vietnam: Does Government Support Matter?," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1048-1069, August.
  • Handle: RePEc:taf:jdevst:v:45:y:2009:i:7:p:1048-1069
    DOI: 10.1080/00220380902811025
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    References listed on IDEAS

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    10. Pablo Fajnzylber & William F. Maloney & Gabriel V. Montes-Rojas, 2009. "Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-Firms," Journal of Development Studies, Taylor & Francis Journals, vol. 45(7), pages 1027-1047, August.
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    Cited by:

    1. Gupta, Himanshu & Barua, Mukesh Kumar, 2016. "Identifying enablers of technological innovation for Indian MSMEs using best–worst multi criteria decision making method," Technological Forecasting and Social Change, Elsevier, vol. 107(C), pages 69-79.
    2. Steer, Liesbet & Sen, Kunal, 2010. "Formal and Informal Institutions in a Transition Economy: The Case of Vietnam," World Development, Elsevier, vol. 38(11), pages 1603-1615, November.
    3. Vu, Van Huong, 2012. "Private manufacturing SMEs survival and growth in Vietnam: The role of export participation," MPRA Paper 42489, University Library of Munich, Germany.
    4. Christine Ngoc Ngo & Miao Chi, 2017. "Differentials in market constraints and value addition among micro, small, and medium enterprises in Viet Nam," WIDER Working Paper Series 082, World Institute for Development Economic Research (UNU-WIDER).
    5. repec:eee:wdevel:v:97:y:2017:i:c:p:79-101 is not listed on IDEAS
    6. repec:bbn:journl:2017_3_2_zuba is not listed on IDEAS
    7. Staniewski, Marcin W., 2016. "The contribution of business experience and knowledge to successful entrepreneurship," Journal of Business Research, Elsevier, vol. 69(11), pages 5147-5152.
    8. Benedikter, Simon & Waibel, Gabi & Birtel, Serge & Bui, Cuong The & Tran, Be Thanh, 2013. "Local Entrepreneurship in Vietnam’s Rural Transformation. A Case Study from the Mekong Delta," MPRA Paper 49866, University Library of Munich, Germany.
    9. Thomas Gries & Ha van Dung, 2014. "Institutional environment, human capital, and firm growth: Evidence from Vietnam," Working Papers CIE 83, Paderborn University, CIE Center for International Economics.
    10. repec:bbn:journl:2017_3_4_pop is not listed on IDEAS
    11. Adam J. Fforde, 2009. "Luck, Policy or Something Else Entirely? Vietnam’s Economic Performance in 2009 and Prospects for 2010," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 28(4), pages 71-94.
    12. Huong Vu & Steven Lim, 2013. "Exports and Firm survival: The first evidence from Vietnam private manufacturing SMEs," Economics Bulletin, AccessEcon, vol. 33(2), pages 1259-1268.
    13. repec:bla:asiaec:v:31:y:2017:i:1:p:83-109 is not listed on IDEAS
    14. Ari Kokko & Tran Toan Thang, 2014. "Foreign Direct Investment and the Survival of Domestic Private Firms in Viet Nam," Asian Development Review, MIT Press, vol. 31(1), pages 53-91, March.
    15. repec:bbn:journl:2017_3_3_lupu is not listed on IDEAS
    16. Frederico Roch, 2014. "Does Governmental Support To Innovation Have Positive Effect On R&D Investments? Evidence From Brazil," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 165, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Caroline Krafft, 2016. "Understanding the Dynamics of Household Enterprises in Egypt: Birth, Death, Growth and Transformation," Working Papers 983, Economic Research Forum, revised Mar 2016.
    18. Nguyen Trong, Co & Vu Van, Huong & Bartolacci, Francesca, 2017. "Government support and firm financial performance: New evidence from a transitional economy," MPRA Paper 81752, University Library of Munich, Germany.
    19. Tien Manh Vu & Hiroyuki Yamada & Tsunehiro Otsuki, 2014. "The rise and fall of multinational enterprises in Vietnam: survival analysis using census data during 2000-2011," OSIPP Discussion Paper 14E001, Osaka School of International Public Policy, Osaka University.
    20. John Rand & Finn Tarp, 2012. "Firm-Level Corruption in Vietnam," Economic Development and Cultural Change, University of Chicago Press, vol. 60(3), pages 571-595.
    21. Doan, Quang Hung & Vu, Hoang Nam & Dao, Ngoc Tien, 2013. "Sub-National Institutions and Firm Survival in Vietnam," MPRA Paper 63653, University Library of Munich, Germany.
    22. Vu, Van Huong, 2012. "Higher productivity in Exporters: self-selection, learning by exporting or both? Evidence from Vietnamese manufacturing SMEs," MPRA Paper 40708, University Library of Munich, Germany.
    23. repec:bbn:journl:2017_3_1_negrusa is not listed on IDEAS
    24. repec:bla:asiaps:v:4:y:2017:i:1:p:50-69 is not listed on IDEAS

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