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VIETNAM SME DEVELOPMENT – STATUS & PROSPECTIVE

VIETNAM SME DEVELOPMENT – STATUS & PROSPECTIVE. OUTLINE OF THE PRESENTATION. Macro economic environment SME profile & Definition SWOT analysis SME positioning. 1. Macro economic environment. VIETNAM AT A GLANCE. Official name: The Socialist Republic of Viet Nam

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VIETNAM SME DEVELOPMENT – STATUS & PROSPECTIVE

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  1. VIETNAM SME DEVELOPMENT – STATUS & PROSPECTIVE OUTLINE OF THE PRESENTATION • Macro economic environment • SME profile & Definition • SWOT analysis • SME positioning

  2. 1. Macro economic environment VIETNAM AT A GLANCE Official name: The Socialist Republic of Viet Nam Area: 331,041 sq km (60 provinces & 4 major cities): Population (million): 86,02 4 (2009) Population growth rate: 1.06% (2009) Labor forces: 47,743.6 million (2009) Unemployment rate: 4.60%(2009) GDP growth rate: 5.32% (2009) GDP per capita: 1,064 (2009) GDP at current price ($m): 91,530 USD(2009) Inflation rate: 6.8% (2009) HDI (UNDP ranking out of 177 countries): 105 (2008)

  3. *Market economy status granted after 12 years Away from low-income country China-ASEAN FTA Open door policy Vietnam acceded to ASEAN WTO member AEC Industrialized country 1986 1995 2005 2007 2009 2010 2015 2020 *500,000 businesses registered by 2010 Law on enterprises *1.1100,000 businesses registered by 2015

  4. FDI by country & sector (Total as of November 22, 2009 by registration capital)

  5. VIETNAM SME DEFINITION

  6. -People -Properties -Processes -Products STRATEGY -STEEEP -Competitors & Collaborators

  7. TRENGTHS • Entrepreneurship, resilience • Capacity for innovation • Competitive labor costs • State of cluster development • Coperation in labor-employer relations • Abundance of young and adaptive labor forces • Sense of social responsibility

  8. EAKNESSES • Low starting point of development • Lacks of skilled labors and high quality human resources • Lacks of long-term strategic vision • Lacks of linkages among sectors • Lacks of cooperative sense • Dependency on state protection and subsidy

  9. PPORTUNITIES • Most products subject toTariff reduction to 0 – 5% under AFTA • More selection to tap the resources from overseas markets • Trend for shifting manufacturing bases of foreign companies to Vietnam

  10. HREATS • Uncertainty of global market economy • Cut throat competition • Level playing field • Non-tariff barriers raised • Middle-income trap

  11. TRENGTHS EAKNESSES PPORTUNITIES HREATS

  12. Firm strategy, structure and rivalry Factor condition Demand condition Related and supply industry Figure 3-1 The determinants of national advantage

  13. Sourcing Cost Customer Adaptation Service Technology Flexibility Market Intelligence Contacts Speed New Materials Raw Materials Labor Components Logistics Financing New Processes Indonesia Korea Singapore China Thailand Japan Malaysia Philippines Taiwan Hong Kong SME POSITIONING Asia Pacific as a Resource Base (Source: Strategies for Asia Pacific /Beyond the Crisis/Philippe Lasserre and Helmut Schuette/ Vietnam

  14. Thank you for your kind attention !

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