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In recent years, Small- and Medium-sized Enterprises (hereafter called SMEs)
have emerged to become an important factor for Vietnam’s rapid economic
growth. The environments in which these SMEs operate are speedily changing
with the internationalization of the Vietnamese economy. Prompt changes have
brought both opportunities and threats for the fragile SMEs section in
Vietnamese economy.
The purpose of this research is to answer “What are the solutions for
Vietnamese SMEs after going in the globalization process?” This paper
indicates solutions (chiefly financial solutions) for challenges lie ahead if the
plans for further trade liberalization and internationalization are realized.
The basis of this paper’s analysis is a database on the activities of some
Vietnamese SMEs in a period of 2007-2009, with quantitative data about
various aspects of company operations, as well as qualitative information about
the entrepreneurs’ perceptions of the current business environment and
expectations about the future. In the survey’s results, I have found a model of
the internationalization of SMEs has been created which includes some
elements: financial keys, governmental role, and other supporting organization.
In which, access in finance has appealed as a key element for small and
medium enterprise regarding the scope research of the survey. I believe they
are main considerations for the Vietnamese SMEs to maintain, survive and
develop their business operation after going globalization. Optimize financial
solutions as suitable way to entry foreign market, government support;
determine own Competitive advantage, positioning, decision-making and
controlling.

Abstract ii
List of tables iv
List of figures v
Acknowledgement vi
Chapter 1.Introduction 1
1.1 Background and motivation 1
1.2 Purposes 3
1.3 Structure of Research 4
Chapter 2. Literature review 5
2.1 Literature regarding small and medium enterprises 5
2.2 Literature regarding globalization and a broad picture of small and
medium enterprises in new circumstances 16
2.3 Literature regarding access to finance 20
Chapter 3. Vietnamese SMEs case 22
3.1 General introduction of Vietnam 22
3.2 Financial Sector Development 33
3.3 Vietnam SME profile 51
Chapter 4. Conclusions remarks 91
References 94
Appendix 101

List of tables
Table 1: Definitions of Vietnamese SMEs 6
Table 2: Advantages and disadvantages of family-owned businesses 9
Table 3: SMEs among total enterprises, contribution to employment, and total value added, in selected Asia – Pacific economies 14
Table 4: 18
Table 5: Exports, imports and the share of trade in GDP 28
Table 6: Exports, imports in GDP and trade balance. 28
Table 7: Financial Market in Vietnam 50
Table 8: Banking Sector in Vietnam 51
Table 9: Definitions of Vietnamese SMEs 52
Table 10: Contribution of Non-State SMEs in the main economic sector, 1997. 55
Table 11: Contribution of Non-State SMEs in the economy, 1998. 55
Table 12: Figures of doing business 58
Table 13:Sources of accessing finance 69
Table 14:Financial audit statement 70
Table 15:Paired sample test 70

List of figures
Figure 1: SME sector’s contribution to employment and GDP 15
Figure 2: Informal sector’s contribution to employment and GDP 21
Figure 3: Vietnam’s main economic sectors 24
Figure 4: Vietnam’s GDP per capita and GDP growth 25
Figure 5: Vietnam’s trade balance 29
Figure 6: Vietnam’s export & import (classified) 30
Figure 7: Vietnam’s export 2009 (classified) 31
Figure 8: Vietnam’s import 2009 (classified) 32
Figure 9: Inflation in Vietnam 33
Figure 10: Vietnamese SMEs development by numbers 54
Figure 11: Vietnam’s export 2009 (classified) 54
Figure 12: Contribution to GDP by economic components 56
Figure 13: Global Rank of Ease of Doing Business 56
Figure 14: Vietnam’s ranking in Doing Business 2010. 57
Figure 15: Top 10 contraints to firm investment in Vietnam 57
Figure 16: SMEs Development Fund 88

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