SMEs play a very important role in the economy of Vietnam, representing more than 97% of the total number of enterprises. According to the World Bank report in 2023, such companies create about 36% of job opportunities and comprise about 40% of GDP. While SMEs play an important role in increasing economic growth, many challenges are still experienced, because most of them cannot access funding that is necessary for their growth and development.
Funding remains a significant challenge for Vietnamese SMEs. A recent World Bank report indicates that 65% of these businesses struggle to secure the necessary funds for growth or sustainability. The primary obstacle is that many SMEs are unable to obtain loans due to a lack of assets or financial history, which prevents them from meeting the strict lending criteria set by banks. As a result, over 50% of these firms have had to reduce their production, while others are contemplating layoffs to stay afloat. The core issue for Vietnamese SMEs is the need for access to reliable and transparent funding sources, despite the common perception that high interest rates hinder business growth.
Moreover, Vietnamese SMEs are contending with fierce competition from both international and local companies that boast strong brand recognition and significant financial backing. With limited budgets and smaller teams, SMEs struggle to set themselves apart from these larger rivals in terms of branding, innovation, and customer trust. In today’s competitive landscape, very few SMEs can afford to implement extensive marketing strategies that could enhance their visibility and foster customer loyalty.
To navigate challenges related to funding, global market integration, branding, and logistical efficiency, Vietnamese SMEs require practical and dependable solutions tailored to the country’s dynamic market conditions. MBE offers a range of logistics services, including secure packaging and international shipping, which simplifies the process for SMEs to access broader markets. Additionally, our tailored marketing and printing solutions provide various cost-effective options to enhance brand image and build consumer trust, essential for helping small businesses distinguish themselves from larger competitors.
Cover Photo: Unsplash
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