Development of small and medium enterprises in the South Central Vietnam

Abstract

Small and medium enterprises (SMEs) play a critical role in socio-economic
development. However, SMEs in Vietnam in general and the South Central region in particular
have difficulties and challenges in terms of capital, resources, land, and technology. In addition,
these SMEs are vulnerable to the changes of the market. This study examines enterprise
statistical data in the period 2016-2020 of the Ministry of Planning and Investment and data
from statistical yearbooks and socio-economic reports of provinces in the South Central region.
Research results indicate that the number of SMEs in the region has considerably increased.
This growth creates job opportunities and improves local workers’ income. In addition, the
study analyzes indicators of capital turnover and profitability index to demonstrate limitations
of these SMEs. Finally, this research proposes solutions to promoting sustainable development
of these SMEs in the new context.