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Private Small-Scale Industries in Vietnam: Development Environment and Empirical Results

Author

Listed:
  • Kurths, Kristina
Abstract
In the course of economic reforms in vietnam the emrging private sector has steadily moved forward in terms of number of interprise units in total, output value and employment generation. Small-scale enterprises, mainly established to create employment opportunities for the owner and his family, decisively contribute to this promising development. The current legal infrastructure, the banking system and supporting programmes provide the necessary backing for private investment but are only partly adequate to the needs of especially small business units. Most of them have to cope with manifold problems like capital shortage and difficulties in marketing (only to mention the most important ones) and are forced to remain small. By means of selected indicators (employee structure, turnover, machinery equipment), surbey results inform about the current development level of small-scale industries in Hanoi, Haiphong and Hong Gai and the view of the entrepreneurs as regards credit policy and marketing. The employment effect of the enterprises surveyed is modest: on average ten employees per interprise unit (household members included). A comparison between the settings reveals Haiphong as the most prosperous location, whereas an analysis of the different legal forms covered by the survey shows that the smaller business units (small-scale/household industries, production groups) are much worse off than the registered private enterprises and companies.

Suggested Citation

  • Kurths, Kristina, 1995. "Private Small-Scale Industries in Vietnam: Development Environment and Empirical Results," SSE/EFI Working Paper Series in Economics and Finance 57, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0057
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    Cited by:

    1. Harvie, C., 2001. "Competition Policy and SMEs in Vietnam," Economics Working Papers wp01-10, School of Economics, University of Wollongong, NSW, Australia.

    More about this item

    Keywords

    Private enterprise; small scale industries; Vietnam model;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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