Vietnamese SMEs as Engines of Innovation and Sustainable Growth
A Conceptual and Policy Analysis
DOI:
https://doi.org/10.53893/fms.v3i2.539Keywords:
Vietnamese SMEs, Innovation, Sustainable growth, Policy analysis, Case illustrationAbstract
Small and medium enterprises (SMEs) in Vietnam face both opportunities and constraints in pursuing competitiveness through digital transformation and sustainability. This study developed a conceptual framework integrating four firm level capabilities - digital agility, innovation capability, sustainability orientation, and entrepreneurial resilience - with ecosystem and policy enablers. Drawing on case evidence from TECHPRO, EMES, and Menas, the analysis showed how digital tools, circular practices, and resilient cultures can accelerate growth, but also how structural barriers such as finance, regulation, and skill shortages hindered scaling. Comparative insights from ASEAN highlighted that coherent policy frameworks, including subsidies, incubators, and mentoring programs, amplified firm level initiatives. The findings contributed conceptually by linking dynamic capabilities with institutional support, and practically by offering managerial and policy implications for SME development. The study concluded that without reforms in finance, regulation, and skills, Vietnamese SMEs would struggle to translate emerging capabilities into durable competitive advantage.
Downloads
References
[1] Ministry of Planning and Investment, Vietnam White Book on Enterprises 2025. Hanoi: Government of Vietnam, 2025.
[2] CPA Australia, Asia Pacific Small Business Survey 2025–2026. Melbourne: CPA Australia, 2026.
[3] OECD, SME and Entrepreneurship Policy in Vietnam. Paris: OECD Publishing, 2024.
[4] World Bank, Vietnam SME Policy Notes. Washington, DC: World Bank, 2024.
[5] SME100 Awards, SME100 Awards Vietnam 2024: Fast Moving Companies. Kuala Lumpur: SME Magazine, 2024.
[6] National Assembly of Vietnam, Law on Supporting Small and Medium Enterprises, No. 04/2017/QH14, Hanoi, 2017.
[7] Prime Minister of Vietnam, Decision No. 749/QĐ-TTg approving the National Digital Transformation Program to 2025, orientation to 2030, Hanoi, 2020.
[8] D. B. Audretsch and R. Thurik, Innovation and Entrepreneurship in the Knowledge Economy. London: Routledge, 2001.
[9] M. E. Porter and M. R. Kramer, “Creating shared value,” Harvard Business Review, vol. 89, no. 1–2, pp. 62–77, 2011.
[10] D. J. Teece, G. Pisano, and A. Shuen, “Dynamic capabilities and strategic management,” Strategic Management Journal, vol. 18, no. 7, pp. 509–533, 1997.
[11] K. M. Eisenhardt and J. A. Martin, “Dynamic capabilities: What are they?,” Strategic Management Journal, vol. 21, no. 10–11, pp. 1105–1121, 2000.
[12] E. Stam, “Entrepreneurial ecosystems and regional policy: A sympathetic critique,” European Planning Studies, vol. 23, no. 9, pp. 1759–1769, 2015.
[13] H. D. X. Trieu, P. V. Nguyen, and D. Vrontis, “The interplay of IT adoption, government support and firm performance: Mediating roles of innovation and resilience in Vietnamese SMEs.” Journal of Asia Business Studies, vol. 19, no. 4, pp. 935–953, 2025.
[14] A. Muthitacharoen, A. Paweenawat, and K. Samphantharak, “The double-edged sword: Unintended consequences of small and medium-sized enterprise promotion policy,” ADB Economics Working Paper Series, no. 778, Asian Development Bank, 2025.
[15] N. A. A. Raub, A. H. Aluwi, N. I. Z. Abidin, and E. Maulina, “Strategic marketing and digital transformation for SME empowerment: Insights from a Malaysia-Indonesia service-learning collaboration,” Journal of International Business, Economics and Entrepreneurship (JIBE), vol. 10, no. 2, pp. 25–33, 2025.
[16] Infocomm Media Development Authority (IMDA), “SMEs go digital programme,” Singapore Government, Singapore, 2026. [Online]. Available: https://www.imda.gov.sg
[17] Bruneel, J., T. Ratinho, Clarysse, B., and A. Groen, “The evolution of business incubators: Comparing demand and supply of business incubation services across different incubator generations,” Technovation, vol. 32, no. 2, pp. 110–121, 2012.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Huyen Thi Minh Van
This work is licensed under a Creative Commons Attribution 4.0 International License.
This license enables reusers to distribute, remix, adapt, and build upon the material in any medium or format, so long as attribution is given to the creator. The license allows for commercial use. If you remix, adapt, or build upon the material, you must license the modified material under identical terms. CC BY-SA includes the following elements:
BY: credit must be given to the creator.
SA: Adaptations must be shared under the same terms.
