The development of small and medium enterprises (SMEs) has been at the forefront of Vietnam's economic strategy, as emphasized during the recent meeting held on February 27, 2025, by Prime Minister Pham Minh Chinh. During this session, government officials engaged with representatives from SMEs to address prevalent challenges and explore ambitious growth opportunities within the sector.
"The development of the business community still faces many limitations and challenges; the potential and development space have not been effectively exploited," remarked Prime Minister Chinh, summarizing the current issues faced by SMEs. This sector is seen as pivotal, employing over 5.5 million people and contributing significantly to the national economy. With more than 940,000 active businesses, nearly 98% are considered SMEs, showcasing their importance as economic drivers.
The meeting underscored the government's commitment to fostering SME growth, which is seen as integral to achieving the nation's target of 8% economic growth by 2025. "We strive to achieve 8% growth by 2025 and double-digit growth in subsequent years," stated Nguyen Van Than, the President of the Vietnam SME Association, advocating for policies to eliminate barriers and empower SMEs to expand.
SMEs play a key role across various industries, significantly contributing to job creation and poverty reduction. Despite this, representatives at the meeting voiced concerns over multiple hurdles hindering their development. Issues raised included inadequate access to financing, complicated administrative procedures, and the need for greater support from the government to compete adequately within local and global markets.
Several business leaders proposed actionable steps during the meeting. Nguyen Van Than suggested the government create incentives for SMEs, particularly those engaging in large-scale national projects. He advocated for policies favoring domestic companies, such as tax reductions and relaxed requirements for collateral loans from financial institutions, to boost investment and growth.
Highlighting the sector's vibrancy, Pham Minh Chinh acknowledged the dynamic nature of SMEs, proclaiming them as "the most flexible and numerous force, the reserve force of large corporations and enterprises". He emphasized the necessity for SMEs to adapt and innovate to thrive amid rapidly changing global economic conditions.
Prime Minister Chinh also called for collaborative efforts between the government and the business community to establish mechanisms for continued support and resource allocation. This partnership is viewed as fundamental for dismantling structural barriers and allowing for the strategic deployment of resources to assist SMEs during challenging periods.
Reflecting optimism about the future, Chinh noted, "The time has come for SMEs to transcend their limitations and engage fully with the opportunities available for growth and sustainability." The call was for the entire political system and the business community to work together to solidify Vietnam's economic future.
To accomplish their growth goals, SMEs must embrace innovation and modernization, with government support facilitating access to new technologies and business models. Promoting sustainable practices, especially post-pandemic recovery, will be integral to their success.
The discourse surrounding SMEs is not merely about economic numbers but reflects the broader aspirations of Vietnamese society to create employment opportunities and improve livelihoods for many. The steady commitment shown by Prime Minister Chinh and government officials indicates recognition of SMEs as the backbone of the economy, urging them to adapt to new market challenges and technologies.
Looking forward, stakeholders urge the government to prioritize investments in infrastructure, digital transformation, and education schemes to nurture the next generation of entrepreneurs. Business leaders remain optimistic, expressing confidence and determination to overcome challenges and contribute to the larger economic vision of Vietnam.
Moving forth, it is clear the growth of SMEs is intertwined with the overall development of Vietnam, both socially and economically. The results from this meeting signal not just the government’s support but also the shared vision of collective progress toward sustainable economic growth, ensuring no one is left behind.