NECESSITY FOR THE DEVELOPMENT OF MEDIUM-SIZED ENTERPRISES IN HOCHIMINH CITY: A CASE STUDY OF THE ELECTRONIC AND INFORMATION TECHNOLOGY AND MECHANICAL SECTORS

Nguyễn Thị Thanh Uyên

Abstract


This study aims to investigate the absence of medium-sized enterprises and the necessity for the development of medium-sized enterprises in two capital-intensive sectors: Electronic and Information Technology and Mechanics in Hochiminh City. The results reveal two major issues. First, there is a lack of medium-sized enterprises in the two targeted sectors. Second, medium-sized enterprises are proven to play an important role in generating and utilizing more effective resources than other large-scale enterprises including the ability to mobilize capital, obtain technology, gain market access and policy support, linking resources, generating income and higher productivity. The case study offers some policy recommendations to overcome the lack of medium-sized enterprises in Hochiminh City.

Keywords


Electronic & Information Technology sector; Medium-sized enterprises; mechanical sector; Missing middle.

Full Text:

PDF

References


Ardic, O. P., Mylenko, N., & Saltane, V. (2011). Small and medium enterprises: A cross-country analysis with a new data set (Working Paper No. 5538). Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/3309/WPS5538.pdf?sequence=1&isAllowed=y.

Ayyagari, M., Demirguc, A. K., & Maksimovic, V. (2011). Small vs. young firms across the world: Contribution to employment, job creation, and growth (Working Paper No. 5631). Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/3397/WPS5631.pdf?sequence=1&isAllowed=y.

Bouazza, A. B., Ardjouman, D., & Adaba, O. (2015). Establishing the factors affecting the growth of small and medium-sized enterprises in Algeria. American International Journal of Social Science, 4(2), 101-115.

Catherine, Y. C., Nguyen, T. K., Nguyen, N. T., & Tran, N. Q. (2017). The missing middle: Growing and strengthening Vietnam’s micro, small, and medium sized enterprises (Working Paper No. 2017/72). Retrieved from https://www.econstor.eu/bitstream/10419/163043/1/88372510X.pdf.

Geroski, A. P. (1999). The growth of firms in theory and in practice (Discussion Paper No. 2092). Retrieved from https://ideas.repec.org/p/cpr/ceprdp/2092.html.

The government of Vietnam. (2009). Decree on supporting small and medium enterprises in Vietnam (Decree 56/2009/ND-CP). Hanoi, Vietnam: The Government of Vietnam Office.

HCMC Statistical Office. (2016). Survey results of HCMC enterprises in 2015 - Scheme for development of SI 2015-2020, vision to 2015. Hochiminh City, Vietnam: The HCMC Statistical Office.

Hidayet, K., Canan, S., Onur, S., & Hakan, M. K. (2010). The importance of SMEs in developing economies. Paper presented at The International Symposium on Sustainable Development, Bosna & Hercegovina. Retrieved from http://eprints.ibu.edu.ba/id/file/1826.

Ho, S. H., Nguyen, H. C., Nguyen, H. L., Trinh, T. H., Nguyen, T. L., & Pham, T. S. (2014). Vietnam small and medium enterprises. Hanoi, Vietnam: Statistical Publishing.

Hsieh, T. C., & Benjamin, A. O. (2014). The missing “missing middle”. Journal of Economic Perspective, 28(3), 89-108.

Jasra, J., Ahmed, I. I. H., Aziz, U. R., Rauf, I. A., & Muhammad, A. K. (2011). Determinants of business success of small and medium enterprises. International Journal of Business and Social Science, 2(20), 274-280.

Khan. S. A. (2014). The SME missing middle problem in developing countries and its link to lack of financing: The case of Bangladesh. (Thesis Master), The University of Ottawa, Canada. Retrieved from https://ruor.uottawa.ca/bitstream/10393/ 31576/1/Khan_Azfar_2014_researchpaper.pdf.

Lee, S., Park, G., Yoon, B., & Park, J. (2008). Open innovation in SMEs - An intermediated network model. Research Policy, 39(2), 290-300.

Liedholm, C., & Mead, D. C. (1987). Small-scale industries in developing countries: Empirical evidence and policy implications [Technical Report]. Michigan, USA: Michigan State University. Retrieved from https://ideas.repec.org/p/ags/mididp/54062.html.

People's Committee of Hochiminh City. (2016). The plan to deploy major tasks and solutions to improve business environment, investment environment, raise high provincial level (PCI) of HCMC, period 2011-2015 (Decision No. 3293/QĐ-UBND dated on 28/6/2016). Hochiminh City, Vietnam: The People's Committee of Hochiminh City.

Pham, T. H., & Shino, T. (2015). Revisiting the “missing middle”: Production and corruption (Working Paper No. WP02/2015). Retrieved from https://ideas.repec.org/p/qld/uqcepa/100.html.

Schmitz, H. (1992). On the clustering of small firms. IDS Bulletin, 23(3), 64-69.

Shinozaki, S. (2012). A new regime of SME finance in emerging Asia: Empowering growth-oriented SMEs to build resilient national economics (Working Paper No. 104.ADB). Retrieved from http://www20.iadb.org/intal/catalogo/PE/2013/10839.pdf.

Sibel, A. (2015). Factors for increasing the competitiveness small and medium-sized enterprises (SMEs) in Bulgaria. Procedia - Social and Behavioral Sciences, 195(3), 1104-1112.

World Bank. (2013). World Development Indicators online. Retrieved from http://data.worldbank.org/data-catalog/world-development-indicators.




DOI: http://dx.doi.org/10.37569/DalatUniversity.8.1.360(2018)

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Nguyễn Thị Thanh Uyên

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Editorial Office of DLU Journal of Science
Room.15, A25 Building, 01 Phu Dong Thien Vuong Street, Dalat, Lamdong
Email: tapchikhoahoc@dlu.edu.vn - Phone: (+84) 263 3 555 131

Creative Commons License
Based on Open Journal Systems
Developed by Information Technology Department