Vietnamese small and medium-sized enterprises: Legal and economic issues of development at modern stage

Abstract

In Vietnam, developmental ideologies in general and market economic principles in particular have been changed drastically under the transitional system. To build a good platform for small and medium-sized enterprises, Vietnam had to amend some of its most important laws on business. This adjustment was conducted not only in order to improve the existing legislation, but also to facilitate Vietnamese laws to match with the world system, especially taking into consideration the fact that Vietnam is under the pressure of international integration and regionalisation. The role of the new Vietnamese government is appreciated through the adoption of the amendments. The Vietnamese business environment has become more supporting, especially for small and medium-sized enterprises which accounted for 97.5% of the total number of 700,000 enterprises of Vietnam in 2016. This paper presents the legal adjustment and evaluates how the latest legislative policies on small and medium-sized enterprises are impacting the Vietnamese economy.