Challenges of Small and Medium-Sized Enterprises (SMEs) In Vietnam during the Process of Integration into the ASEAN Economic Community (AEC)

Abstract

This paper analyzes the economic obstacles faced by small and medium sized enterprises (SMEs) in Vietnam during the process of integration into ASEAN Economic Community (AEC). It also examines the level of awareness of those obstacles within SMEs and the preparation they made, if any, to overcome those obstacles. To achieve the research objectives, quantitative methods are used. With surveyed data that covered 2,575 SMEs in Vietnam from the Central Institute of Economic Management (CIEM)  and the data from the Asian Kenan Institute (OSMEP),  the results showed that Vietnamese SMEs are facing major obstacles, such as: (1) intense competition from domestic as well as foreign businesses (2) difficulty in consumer markets, (3) lack of capital, and (4) limited understanding of relevant laws. Lastly, the study provides some suggestions to help Vietnamese SMEs overcome these obstacles and  prepare to actively integrate into regional markets.