Small and Medium Enterprises in Tra Vinh Province, Vietnam An examination of problems and prospects

Tra Vinh is one of 63 provinces in Vietnam. It is located in Mekong Delta andis also one of the poorest. The official population of Tra Vinh Province is over onemillion people. Over 29% of the population’s ethnicity is Khmer. Over 80% of thepopulation is dependent on the agricultural sector.Since the Vietnamese government has implemented Doi Moi (reform) policies(in 1986), Vietnam’s business climate has been quickly improved. The state hasfollowed a market economy and officially admitted that there are various sectors inthat economy. The appearance of an enterprise law in Vietnam was a vital mark todevelop enterprises in Vietnam. Thanks to the enterprise law, hundreds of SMEs inTra Vinh started up during the last eight years.In past years, SMEs faced disadvantages in their business activities.However, it had been supported by the local government through implementingpolicies to promote SMEs. Thanks to their help, it has been exploring comparativeadvantages in locality to expand their business. SMEs have become one of theimportant factors which contributes local social-economic development. SMEs havecreated jobs for the local people to improve their living standards themselves. SMEshave played a vital role in eliminating poverty in Tra Vinh province.