Home / Knowledge / News / Textiles / SMEs continue to face problems despite growth
SMEs continue to face problems despite growth
Jul '08
Although small and medium sized enterprises have grown at rapid pace since the time Vietnam joined the World Trade Organization, experts believe that they are still too small, inefficient and face major financial and other crisis.

After becoming a WTO member last year, Vietnam saw 50,000 new SMEs springing up. The fastest growth recorded by the sector was when it accounted for 24.6 percent of the industrial output in 2000 which escalated to 37.5 percent in 2005.

However, difficulties facing the sector were so grave that it virtually impeded the overall growth in terms of output.

Nearly 41 percent of the SMEs had a capital of VND1 billion or less, while over 51 percent had only 10 employees or even less. This just proves that more than two-thirds of the SMEs face a serious financial crunch while almost all of them are denied of adequate technologies.

Poor marketing strategies, low quality and lack of strategic management are some of the other serious problems faced by the SMEs.

Economists have opined that if the Government supported the SMEs with financial assistance which otherwise flowed into big groups, the sector could generate huge returns for the economy.

Must ReadView All

Textiles | On 20th Oct 2016

Indian polyester market demand grows 14% in Q2 FY17: RIL

The Indian polyester market witnessed a demand growth of 14 per cent...

Fashion | On 20th Oct 2016

Replay to explore new markets in 2017

Replay, the iconic Germany based denim brand, is planning to get into ...

Textiles | On 20th Oct 2016

Pakistan proposes Rs200 bn for textile sector revival

A bailout package of Rs 200 billion has been proposed by the Pakistan ...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search