Arbeitspapier

The missing middle: Growing and strengthening Viet Nam's micro, small, and medium-sized enterprises

We study the exporting and subcontracting decisions, mark-ups, market concentration, and growth of a panel of Vietnamese private micro, small, and medium-sized enterprises. Our main findings are as follows. First, we find that among subcontractors, subcontracting is a supplementary rather than primary activity. Second, there is strong evidence that the propensity to export increases with managers' or owners' knowledge of customs law. Third, all else equal, mark-ups are lower for larger micro, small, and medium-sized enterprises. Fourth, there is significant home province bias in the sales of Viet Nam's micro, small, and medium-sized enterprises. Membership of business associations and having internationally recognized quality certifications attenuate the size of the home market bias. Fifth, a significant number of enterprises did not grow or even contracted in size between 2010 and 2014. Finally, we find no evidence that inspections deter enterprises from expanding beyond their core competencies.

ISBN
978-92-9256-296-0
Language
Englisch

Bibliographic citation
Series: WIDER Working Paper ; No. 2017/72

Classification
Wirtschaft
Empirical Studies of Trade
Economic Impacts of Globalization: Microeconomic Impacts
Contracting Out; Joint Ventures; Technology Licensing
Firm Performance: Size, Diversification, and Scope
Microeconomic Analyses of Economic Development
Subject
Viet Nam
exporting
subcontracting
SME
enterprise growth
home market bias
mark-ups

Event
Geistige Schöpfung
(who)
Co, Catherine Yap
Thu Kim Nguyen
Tung Nhu Nguyen
Que Nguyet Tran
Event
Veröffentlichung
(who)
The United Nations University World Institute for Development Economics Research (UNU-WIDER)
(where)
Helsinki
(when)
2017

DOI
doi:10.35188/UNU-WIDER/2017/296-0
Handle
Last update
10.03.2025, 11:46 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Co, Catherine Yap
  • Thu Kim Nguyen
  • Tung Nhu Nguyen
  • Que Nguyet Tran
  • The United Nations University World Institute for Development Economics Research (UNU-WIDER)

Time of origin

  • 2017

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