Working Paper
Differentials in market constraints and value addition among micro, small, and medium enterprises in Viet Nam

This paper analyses the differentials of productive values in Vietnamese micro, small, and medium enterprises (MSMEs) and how market constraints have hindered their performance. Quantitative analyses suggest substantial differences in value addition among manufacturing MSMEs, and the crucial contribution of technology adoption to their development.

We assess MSMEs’ productive value, production organization and performance using qualitative analysis. Our case studies identify market failures hindering MSMEs’ potential; explain their strengths and weaknesses; and assess how the market structure influences their production costs and business strategies. Drawing from these insights, we suggest policy options to strengthen capability and competitiveness of Vietnamese’ MSMEs.