Vietnam’s SMEs positive about business future

Some 48 per cent of 501 Vietnamese small and medium-sized enterprises (SMEs), which participated in The Future of Business survey, have positive views about the current situation.

Some 48 per cent of 501 Vietnamese small and medium-sized enterprises (SMEs), which participated in The Future of Business survey, have positive views about the current situation. — Photo

This was revealed in findings unveiled by Facebook last week.

The survey, developed by the Organisation for Economic Cooperation and Development (OECD), World Bank and Facebook, is a source of information on SMEs looking to learn from other businesses.

This includes insights on how businesses are more confident if they trade internationally and how those that trade internationally are using digital tools at a higher rate.

The percentage is not so high but still higher than the global average of 42 per cent, according to the survey, which was conducted last December, a month that was significant since it ended one year of the country’s economic development.

The December survey revealed some 69 per cent SMEs were hopeful of a positive future, nine per cent higher than the global average rate.

Thirty-eight per cent of SMEs said they created jobs in the past six months and 66 per cent said they want to create jobs in the next six months.

Among the key findings for Việt Nam, the survey revealed the most common challenges for business, which included attracting customers, increasing revenue and maintaining profitability.

“Some 78 per cent of Vietnamese small businesses said they used online tools to advertise to potential new customer products and services,” according to the survey.

Facebook said 21 per cent of small businesses surveyed engaged in international trade. This was high considering 70 per cent of these businesses have fewer than 10 employees and are not large multinationals.

The most commonly reported challenges for small businesses engaging in international trade are finding business partners, market access limitations and different regulations in other countries, which comprised 82 per cent, 64 per cent and 54 per cent of the participants, respectively.

Meanwhile, women running businesses were found to be as confident about the current and near-term outlooks of their businesses and reported facing the same challenges as male-run businesses.

Women-run businesses used digital tools for two of the six purposes included in the Future of Business survey, more than male-run businesses.

Small businesses represent more than 90 per cent of enterprises in all economies and also constitute a majority of a country’s employment virtually worldwide. OECD, World Bank and Facebook teamed up to create an online monthly survey of small businesses to understand their sentiment, activities and challenges. Timely information about businesses provides a pulse on the current and future economic environment in which businesses operate and gives insight on ways to help businesses grow.

Nearly 6,100 Vietnamese businesses took part in the monthly surveys in 2016, according to reports

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