Summary of phd thesis the impact of export on the growth of small and medium sized manufaturing enterprises in vietnam

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY SUMMARY OF PHD THESIS THE IMPACT OF EXPORT ON THE GROWTH OF SMALL AND MEDIUM SIZED MANUFACTURING ENTERPRISES IN VIETNAM Major: International Economics Code number: 9310106 LE THI THANH Hanoi — 2023 NGAN The thesis is completed at: Foreign Trade University Science Instructor: Assoc.Prof.Dr Nguyen Thi Thu Ha Dr Nguyen Thi Hoang Anh Reviewer 1: Reviewer 2: Reviewer 3: The research will be protected in front of the council meeting at Foreign Trade University The thesis can be founded at National Library and Library of Foreign Trade University Rationale of the study INTRODUCTION Small and medium-sized enterprises (SMEs) play an role in the economy of every country around the world, highly developed countries The development of SMEs is way to accelerate the achievement of socio-economic important including seen as a goals of countries (Cook and Nixson, 2000) However, with the limitation of scale, human resources, capital, technology this type of enterprise has to face many challenges to survive and develop Growth is always the top goal of SMEs towards sustainable development because without growth, the existance ability of SMEs is significantly reduced (Freeman, et al., 1983) The topic about SME growth is of particular interest to scientists In the process of doing business, many SMEs have turned to export and consider this as one of the solutions to help them grow Studies on the impact of exports on SME growth have attracted the attention of many researchers worldwide However, these studies not reach consensus, even many studies have conflicting results within the same country There are still many debates about the effects of exports on firm growth Several studies have confirmed the positive effect of export on growth such as Kraay (2002), Blalock and Gertler (2004), Lu and Beamish (2006) Meanwhile, many studies have found no evidence on the impact of export on firm growth (Liu et al., 1999; Aw et al., 2000; Hahn, 2005; Di Cintio et al (2017) or think that the benefits from exporting depend on many factors such as the industry, the type of firm (Park, 2011) and the degree of internationalization of the firm (Kafouros et al., 2008) In Vietnam, research on the impact of export on the growth of SMEs has also attracted the attention of some researchers such as the studies of Vu Huong et al (2014), Pham Dinh Long and Nguyen Chi Tam (2018), Nguyen Thu Hang et al (2018), Pham Thi Huyen Trang and Vu Hoang Nam (2020) Although certain results were achieved, most of these studies were based on a small number of exporters or only use export as a control variable or only exploit export from the perspective of whether the firms export or not without paying attention to the different export status of the firm In addition, these studies only measure firm growth on individual aspects such as revenue, labor, profit, etc., but not combine different measures to research the topic from many different angles On the other hand, the studies dedicated to manufacturing firms are very limited in number, although in Vietnam, the manufacturing industry plays a particularly important role as the driving force for economic growth (GSO, 2021) Stemming from the inconsistency in empirical research results in the world and in Vietnam and the practicality of the study, in order to provide empirical evidence on the influence of export on the growth of SMEs in various aspects, the author has chosen the topic "The impact of export on the growth of small and medium-sized manufacturing enterprises in Vietnam" as the research topic of the thesis Research objectives Research objectives The overall objective of the thesis is to study the impact of export on the growth of manufacturing SMEs, thereby proposing solutions to promote export activities, in order to improve the growth rate of these enterprises in Vietnam in the near future Research tasks Firstly, the thesis systematizes the theoretical basis on export, firm growth, and the impact of export on SME growth Secondly, the thesis analyzes and evaluates the current growth rate of manufacturing SMEs in Vietnam Thirdly, on the basis of data collection and research model building, the thesis explores and analyzes the impacts of export on the growth of manufacturing SMEs through the following aspects: participation in export and export status Fourthly, based on the analysis results, the thesis proposes some recommendations to promote export activities, thereby improving the growth rate of manufacturing SMEs in Vietnam Research questions: To achieve the research objectives, the study identified critical questions including: (1) The growth of manufacturing SMEs is measured by which indicators? (2) What is the growth situation of manufacturing SMEs in Vietnam in recent years? (3) How does export, with two factors: involved in export or not and what is the status of export, has an impact on the growth of manufacturing SMEs in Vietnam? (4) What are the recommendations to promote export activities that contribute to the growth of manufacturing SMEs Research concepts and Scope Research subjects The object of the thesis is the impact of export on the growth of manufacturing SMEs Research scope: Content scope: In this study, the thesis approaches the problem of firm growth based on the growth rate of firm To measure the growth rate of the firm, the thesis uses a combination of all three measures of the growth rate of the firm: revenue growth rate, asset growth rate and labor growth rate In order to analyze the influence of export on firm growth, the thesis explores the issues of export in terms of whether firm participates in export or not and the export status of the firm In which, the export status includes: start to export, continue to export and stop exporting Geographical scope The Vietnam spatial scope because of the thesis is manufacturing of their different characteristics in SMEs in production, business and investment activities from other kind of firms Time scope The time scope of the thesis is the period 2014-2019 The thesis does not include the period after 2019 when the market has a lot of instability due to the influence of the Covid 19 pandemic, resulting in high data volatility and the lack ofa number of important indicators 4, Research Methodology Data collection methods: The data source for the thesis research is mainly secondary data source, which is used to: (i) Review of research works and systematize theory on related issues of the thesis The author uses data from domestic and foreign sources of books, newspapers, magazines, dissertations and specialized seminars (ii) Analyze the growth situation of manufacturing SMEs in Vietnam and assess the impact of export on the growth of manufacturing SMEs in Vietnam Secondary data is collected by the author from the results of the Annual Enterprise Survey of the General Statistics Office, in which the research sample is enterprise operating in the manufacturing industry (manufacturing firms) from 2014-2019 Data processing method: The thesis uses quantitative method To evaluate the effect of export on firm growth, the author uses Pooled Ordinary Least Square (OLS) and two-step GMM estimation method New contributions of the Thesis Theoretical contributions Firstly, the thesis has systematized theoretical issues about export, firm growth and the influence of export on firm growth from researches in the world and Vietnam Second, in order to measure firm growth, the thesis uses a combination of all three measures: revenue growth, labor growth and total asset growth The use of all three measures of firm growth will make the research on firm growth more profound, the research results more reliable Thirdly, the thesis explores export in terms of whether the firm participates in export or not and the export status of the firm while previous studies only consider export as a control variable In addition, the thesis limits the scope of research to manufacturing SMEs because of the unique characteristics of this kind of enterprise and their importance to the economy of any country Practical contributions: Firstly, the thesis has described the growth and export situation of manufacturing SMEs in Vietnam Second, the thesis provides empirical evidence on the influence of export on the growth of manufacturing SMEs in Vietnam on two aspects, whether the firm export or not and the export status of the firm Research results are the basis for proposing solutions to promote and maintain stable export activities, thereby promoting firm growth CHAPTER 1: RESEARCH OVERVIEW 1.1 Overview of researches on growth of SMEs The growth of SMEs has always been a research topic of interest to many scholars worldwide These studies focus on finding out the factors affecting the growth rate of SMEs These studies focus on finding out the factors affecting the growth rate of SME In which, the research mainly follows two main branches The first branch studies the dependence of the growth rate on the size of the firm and the number of years of operation of the firm The second branch of research argues that the growth rate of the firm depends not only on the size and number of years of operation, but also on the characteristics of the firm and the firm’s owner For the first branch of research, the studies mainly test the validity of the Gibrat theory for SMEs in different countries However, the results of studies did not reach consensus Regarding the size of enterprises, the studies supporting the Gibrat theory that firm growth is independent of its size are mostly studies on large and long-standing enterprises Meanwhile, many other studies provide evidences that firm size has an impact on firm growth, especially in the manufacturing sector (Fiala and Hedija, 2019) Regarding the number of years of operation of enterprises, some studies support the view that young enterprises will have more advantages than old enterprises in adapting to changes in the market (Geroski and Gugler 2004; Nguyen Thu Hang et al., 2018; Evans, 1987) For the second research branch, the empirical evidence then continues to confirm that the growth rate of enterprises depends not only on traditional factors such as size and number of years of operation, but also on other unique characterisics of enterprises and business owners The unique characteristics of enterprises include access to capital, ownership forms, human resources, and business strategies The characteristics of the business owner include education, gender, age, etc 1.2 Review of studies related to the impact of exports on growth of small and medium enterprises Studies on the impact of exports on growth of SMEs: Research results on the impact of exports on growth of SMEs are quite scattered Many studies in the same country have opposite results There are still many debates about the benefits that exports bring to exporters (Wagner, 2012) Studies that support the view that exports promote business growth suggest that exports help firms gain economies of scale By exporting, enterprises can increase the number of goods sold, allocate fixed costs on a large number of products, and reduce product costs In addition, exporting enterprises have the opportunity to learn from export activities and thereby create innovations in enterprises, promoting business growth (Robson and Bennett, 2000; Castellani, 2002; Baldwin and Gu, 2003; Wagner, 2002; Lu and Beamish, 2006; Golovko and Valentini, 2011; Yang and Tsou, 2020; Esaku, 2021) Meanwhile, studies refusing the impact of exports on firm growth tend to negate the mechanism of learning from exports and favor the mechanism of self-selection An enterprise that wants to participate in the export market needs to be prepared in terms of capital and size of the enterprise to compete with competitors from the importing country and other goods of the same type in the importing market The advantage of scale will help businesses reduce the cost of export products, over time, businesses will have a foothold in the market An enterprise must become a firm that performs better than other firm in the same industry to be able to participate in export markets Therefore, these studies suggest that the difference in growth of exporting and non-exporting enterprises is due to the fact that exporting enterprises have been prepared in advance (Bernard and Jensen, 1995; Liu et al., 1999; Delgado et al et al, 2002; Hahn, 2005; Di Cintio et al., 2017; Paul et al., 2017) Studies on the impact of export status on SME growth: The export process leads to important changes in firm behavior and performance, and these changes can more pronounced in SMEs (Acs et al., 1997; Peiris et al 2012) Entering and leaving international markets are times of significant change for any firm (Bernard and Jensen, 1999; Greenaway and Kneller, 2007) The number of studies analyzing the specific impact of different status in the export process on the growth rate of firm is still quite limited and not reach consensus in the results (Lafuente et al., 2018) Some studies have found evidence that enterprises move from a state of non- export to export, business performance will increase, while switching from being an exporter to selling only in the domestic market led to poor performance However, many studies not find a difference in growth between firms that start to export and stable-exporting firms (Lafuente et al (2018) or suggest that the extent of the effect of export status to firm growth is different across industries (Ngo Quang Thanh and Nguyen Thi Canh, 2020) 1.3 Research gap First, mainly use combination growth and about measuring firm growth: studies on firm growth a single growth indicator Therefore, the use of a of three measures of firm growth (revenue growth, labor total asset growth) confirming the stability of the research results Second, about the measurement of the export variable: Literature review shows that, in Vietnam, previous studies only studied the impact of export or not export on firm growth In this thesis, the author researches and puts into the model both aspects of export: whether the firm export or not and the export status of the firm (including start to export, continue to export and stop exporting) Third, about the research method: the research review shows that studies in Vietnam mainly use the traditional regression method, so the endogeneity problem due to the use of lagged variables in the models has not yet been solved To overcome this phenomenon, the thesis uses the System Generalized Method of Moments (SGMM) two-step to solve the problem of model defects Therefore, the research results are expected to be more reliable Fourth, about the scope of the study The number of SME-specific studies is very limited Moreover, industrialization is a major policy of the Communist Party of Vietnam The manufacturing industry is identified as the driving force for economic growth Therefore, the thesis's limitation of research scope at manufacturing SMEs has great practical significance Fifth, about the data: The research on SMEs in Vietnam mainly uses the dataset for SMEs surveyed by the World Institute for Development Economics in the period 2004-2015 Therefore, the thesis's use ofa large dataset with updated data for the period 2014-2019 from the results of the GSO's Annual Enterprise Survey is expected to find a more suitable solution for the problem in the current period CHAPTER 2: THEORETICAL BASIS ON THE IMPACT OF EXPORT ON THE GROWTH OF MANUAFACTURING SMALL AND MEDIUM SIZED ENTERPRISES 2.1 Overview of Manufacturing Small and Medium Sized Enterprises Small and medium sized enterprises Definition of SME: Currently, there are significant differences in the definition of SME around the world due to differences in economic development and socio-cultural characteristics in different countries In this thesis, for the date in the period from 2014-2017, the author uses the criteria to determine SME according to Decree No 56/2009/ND-CP dated June 30, 2009 Accordingly, small and medium; having a total SME in the manufacturing industry means a business establishment that has registered its business in accordance with the law and is divided into three levels: micro, capital of no more than VND 100 billion or an average number of employees of no more than 300 people per year (total capital is the priority criterion) With data from 2018 and later, the author uses the criteria for SME identification in the Law on SME Support 2018 and Decree No 39/2018/ND-CP Accordingly, SME includes micro-enterprises, small enterprises and medium-sized enterprises with the average number of employees participating in social insurance in the preceding year not exceeding 200 people and meeting one of the following two criteria: a) Total capital of the preceding year must not exceed 100 billion VND; b) Turnover of the preceding year is not more than 300 billion VND 2.1.2 Manufacturing enterprises In the ISIC 4.0, the United Nations defines a manufacturing enterprise as follows: “Manufacturing enterprises are enterprises that perform physical or chemical effects on raw materials, substances, semi-finished products to transform them into products that meet market needs” (United Nations, 2008) 2.1.3 Characteristics of manufacturing SMEs In terms of capital, SMEs are capital-intensive businesses The production process requires investment in factories, machines, equipment and complex technological production systems, so manufacturing enterprises have a high level of investment in assets Regarding human resources, the level of labor in manufacturing SMEs is low compared to the general level of the economy and other economic sectors In terms of ownership and management structure, 11 2.3.3 Advantages enterprises and disadvantages of exporting activities for Benefits of exporting: Firstly, exporting is a low-risk, lowinvestment method of entering foreign markets Second, exporting can help businesses achieve location economies, which are the savings arising from performing value-creating activities at the optimal location for that activity at any given location, anywhere in the world Third, exporting helps firms achieve economies of scale, which is the cost advantage that comes from the large size of the enterprise, or the large scale of production Fourth, exporting is the source that helps increase the productivity of firms through the learning effect Disadvantages of exporting: First, exporting from a company's domestic facility may not be suitable if the cost of production at home is higher than the cost of production abroad Second, high logistics and transportation costs can make exporting uneconomical, especially for large sized or bulk goods Third, tariff barriers are a barrier to export activities Fourth, dependence on overseas agents can be risky 2.3.4 Export for small and medium enterprises Export is a particularly important method of entering foreign markets, more than 80% of SMEs use this method when deciding to expand abroad because this method does not require a high level of commitment of resources and finance, is easy to withdraw, so the risk is low (Golovko and Valentini, 2011; Deresky and Christopher, 2015) However, SMEs also face many obstacles when exporting Firstly, a large proportion of SMEs not have enough financial resources to carry out exporting due to their limited access to capital Second, SMEs lack qualified and experienced human resources for the export process (Mendy and Rahman, 2019) Third, the next obstacle in the SME's export process is access to information Fourth, SME's ability to link with other firms in the industry is limited, hindering the process of expanding business to foreign markets 2.4, Theoretical basis of the impact of exports on manufacturing SME’s growth 2.4.1 Background theories Penrose's growth theory: According to the author, firm growth means efficient use of resources and management capability has an 12 important impact on growth Accordingly, a firm is a collection of its own distinctive and characteristic resources Firm growth depends on the diversity and number of resources that an enterprise can use to grow The firm’s diversification strategies should focus on how to best exploit the firm’s current resources It means that growth by diversification will be best achieved if the new activities are related to the existing resource base of the firm Export is the development strategy beyond the current market but still within the capacity and value network of the group By exporting a firm's traditional products or services into new markets, a firm can create synergy for themselves (Ansoff, 1965) The reason is that export helps businesses achieve economies of scale By expanding markets and increasing sales to international markets, firm can save production costs by being able to allocate fixed costs over a large number of products Resource-Based View: According to Wernerfelt (1984), the position in the market of a firm depends on its ownership of scarce resources Firm resources can be tangible or intangible resources And export can help create resources of firm in the sense that it is not simply the act of producing goods and selling them abroad, but also a way to accumulate experience and knowledge learned from foreign buyers such as: design transfer, quality control methods or technical advice from the buyer Uppsala Model: According to this theory, internationalization is a four-stage process in which firms make constant efforts to increase participation and share in international markets, and at the same time, gradually improve foreign consumers' awareness and commitment to their products In the first stage, firms operate in the domestic market and not participate in export activities In the next stage, firms start to be interested in expanding cross-border business activities by exporting through representatives or agents In the third stage, due to the tie-up establish with resources in the international sales branches abroad, and market, further firms often build up production/manufacturing facilities in abroad in the final stage Therefore, business results will also change differently depending on the stage of internationalization of firm 13 2.4.2 The impact of exports on manufacturing SME’s growth From previous studies and collected data, when studying the impact of export on firm growth, the aspects of export mentioned in the thesis include the fact that firm exports or not and the export status of the firm Impact of export on firm growth: Whether we use classical or modern trade theory, economists appreciate the long-term growth benefits of international trade when resources are used more efficiently However, empirical studies on the effect of export on growth not reach consensus, even many studies have conflicting results Impact of export status on firm growth: The impact of export status on growth is explained by the Uppsala model of firm development and internationalization by Johanson and VahIne (1977) According to Bernard and Jensen (1999) and Lafuente et al (2018), firm achieved a significant improvement in business performance due to the effect of moving from non-exporting to exporting Meanwhile, firm that stops exporting may face financial risks related to their previous export investments Operating results may be affected by reduced sales As a result, the growth rate of firm may be reduced (Crick, 2003; Das et al., 2007) Firms that regularly export will benefit more from exporting (Silvente, 2005) 2.5 Conceptual model Figure 2.3 Conceptual model EXPORT EXPORTING NOT EXPORT EXPORTING STATUS CONTINUE TO EXPORT STOP 14 CHAPTER 3: RESEARCH METHODS 3.1 Research design Step 1: Build a theoretical framework The thesis builds a theoretical framework from an overview of domestic and foreign researches on firm growth and the impact of export on firm growth Step 2: Build model and research method Based on the theoretical framework built in step 1, the author identifies research objectives, research questions, builds models, proposes research hypotheses and selects appropriate research methods Step 3: Analyze research results and come up with solutions Using the research model and research method in step 2, the thesis analyzes and discusses the final research results 3.2 Research hypotheses 3.2.1 Research hypothesis related to the impact of export activities on the growth of small and medium-sized manufacturing enterprises Hypothesis H1: There exporting and firm growth is a positive relationship between 3.2.2 Research hypothesis related to the effect of export status on the performance of small and medium enterprises Hypothesis firm growth Hypothesis firm growth Hypothesis growth Hypothesis growth is greater H2(a): Starting to export has a positive effect on H2(b): Cessation of export has a negative effect on H2(c): Stable exporting has a positive effect on firm H2(d): The positive impact of exporting on firm among stable exporters than among new exporters 3.3 Regression model and measurements 3.3.1 Regression model From the hypotheses in Section 3.2, in order to test the influence of export factors on firm growth, the thesis proposes a general research model which is model (1): TANGTRUONG;, = Bo + B:BIEN_XUATKHAU;—1 + BzQUYMO_DN;:_¡ + BaTANGTRUONG;_¡ + B,BIEN_KIEM_SOAT_D? B;BIEN_KIEM_SOÁT_CHU_DN;,+ &, (1) 15 3.3.2 Variable Measurements Table 3.1 Main variables Variable Meaning Measure Dependent Variables TANGTRUONG | _DOANHTHU Expect ed impact The difference between the natural logarithm of the firm’s net sales Revenue growth rate between years t and t-1 The difference between TANGTRUONG | Labor growth | the natural logarithm of _LAODONG rate the firm’s average labour between years t and t-1 TANGTRUONG | _TAISAN Difference between the Total _ asset | natural logarithm of the growth rate firm's ending assets Independent Variables pid XK_KYTRUOC BATDAU_XK ave yetween years t and the activities t-1 firm Dummy, ‘variable, take export | value I if in | in year t-1 year equals firm exporte t-1, otherwise, thevalielifine maid | ` _ started the value| if ji the firm di Firm not export in the years exporting at) before year t but started y exporting in year t, otherwise equals “TING Dummy variable takes i stops the value | h if the firm has Firm exported in the years NGUNG_XK exporting ONDINH_XK + Firms exporting ears up at y a Pp = exporting in year otherwise equals years up to year total the firm at year t-1 size by | Natural logarithm of the asset of | previous + t, Firm size by | Natural logarithm of the revenue of the previous year's sales of LN TAISANK | Firm YTRUOC t, Dummy variable takes all value “1 if firm has to | 2ways exported in all previous year_| - belore year t but stops y otherwise equal to Control variables: Firm characteristics iN DOAN + year's _ total - 16 Variable Meaning the previous | asset of the firm at year= Firm size By year average year ~ TANGTRUONG KYTRUOC TANGTRUONG RUOC in previous Value year previous | ; | Total ie year previous | NHTHU year > ĐÔNG KYTR ie the LOAIHINH_KY | TRUOC of the P of the of f | the the ton total previous | assets Number TUOLDNKYT of previous of TRUNG_NIEN + Tiabilities/total Ï liabili + of ears of COMPANY the in year t-1 Natural Togarithm of the of | number of years oi - gperation | in | operation of ‘he firm the previous | from the date of year establishment to year t-1 Legal form of | the enterprise | in the previous | year if the ‘firm registers a legal form of limited liability or joint-stock company, otherwise Dummy variable, takes T Owner's age Education level of owner + equals to Dummy’ variable, take value of years | if owner is 40 old or D immy variable, takes the value of if the owner has a university degree or - older, otherwise, equals 0; TRINHDO + previous of p Control variables: Owner characteristics ¬ + previous | TANGTRUONG_ LAO Leverage Lev year P previous TANGTRUONG_TAIS AN ~ | Labour Value TANGTRUGNS rowth rate of | year YTRUOC of the TANGTRUONG_DOA asset | Value rowth rate of | year - ¥ rowth rate of | ie Expect ed impact ihe firm “ai ear tel | Revenue ~ ~ "of | Natural logarithm of the employees the total LN_LAODONG J number _KYTRUOC Measure higher, + 17 Variable Meaning Gend ~ ender GIOITINH firm owner Expect ed impact Measure r otherwise equals D ummy, Variable, take of | value of | if firm owner + is male, otherwise equals 3.4, Data collection and processing 3.4.1 Data collection The data of the thesis is taken from the results of the Annual enterprise Survey of the General Statistics Office (GSO) The data samples used in the thesis are manufacturing firms operating in the manufacturing industry The data sample covers all sub-sectors of the manufacturing industry over a 6-year period from 2014-2019 3.4.2 Data processing After collecting data on enterprises with business registration in the group of manufacturing industries with industry codes level from C10-C33 according to VSIC 07 and VSIC 18, the author conducts a repeatability test and remove duplicate observations To deal with outliers, the author decided to remove 10% of the maximum value and 10% of the minimum value of the net sales, total assets, revenue growth, labor growth, and total asset growth to eliminate the effect of outliers In addition, the measurement of the growth rate of the firm is based on the growth rate and characteristics of the firm in the previous year, so the sample will lose the observations of the first two years and the final data consists the observations from 2016-2019 Finally, the author obtained an unbalanced panel data consisting of 86,441 observations of 36,486 enterprises The data is processed by Stata 16.0 software 3.5 Regression method - Pooled least squares regression method (Pooled OLS): The Pooled OLS method is used by many authors in studies on the impact of EXPORT on firm growth as in the study of Bernard and Jensen 1999), Liu et al (1999), Lafuente et al (2018) In this thesis, the research model uses industry and year dummy variables to fix industry and year effects In case the model has variable variance defects, the thesis uses a combination of Robust option (robust standard errors method) 18 - Generalized method of moments (GMM): The thesis uses the systematic GMM estimation technique proposed by Arellano and Bover (1995) and Blundell and Bond (1998) The systematic GMM method is suitable for the following reasons Firstly, the study uses a large number of firms (38,468 firms), while the study period is years, which is very small compared to the number of firms Secondly, the research model of the thesis is a dynamic model with the appearance of lagged variables in the model and may arise endogenous problems in the estimation Third, the data used in the thesis is unbalanced panel data systematic GMM method Therefore, the is considered to be the most suitable to overcome the above disadvantages (Roodman, 2009b; Sharma and Mishra, 2011; Ngo and Nguyen, 2020) In addition, the thesis chooses a two-step system GMM with standard error correction according to Windmeijer (2005) to obtain a more accurate estimation result than a one-step system GMM and overcome autocorrelation and endogeneity (if any) the heteroscedasticity, CHAPTER RESEARCH RESULTS ON IMPACTS OF EXPORT ON GROWTH OF SMALL AND MEDIUM SIZED MANUFACTURING ENTERPRISES IN VIETNAM 4.1 Export participation of small and medium-sized manufacturing enterprises in Vietnam Table 4.1 describes the current status of SME exporting in the manufacturing industry It can be seen that the proportion of enterprises exporting over the years is at a low level and tends to decrease gradually Table 4.1 Percentage of small and medium-sized manufacturing enterprises participating in exporting Export| No Yes Total 2016 Number|% _ 13043 |93.5 914 65 |13957 |100 2017 Year 2018 |Number|% _ [Number |18426 |939|2525I |1,197 [61 |1462 |19623 |100 |26713 |% |94.5 |55 |100 2019 |Number [24281 |I2l6 |25497 |% [95.2 |48 | 100 Total |81001 |4789 |85790 Source: Author's compilation according to calculations from STATA 16.0