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0 MINISTRY OF PLANNING & INVESTMENT MINISTRY OF EDUCATION & TRAINING CENTRAL INSTITUTE FOR ECONNOMIC MANAGEMENT LE DUY BINH CAPITAL ACCUMULATION OF SMALL AND MEDIUM ENTERPRISES IN THE PROCESSING, MANUFACTURING INDUSTRY IN VIETNAM Major: Economic Management Code: 62 34 04 10 SUMMARY OF DOCTORAL THESIS IN ECONOMICS Hanoi, 2017 The thesis was completed at: Central Institute for Economic Management (CIEM) Supervisors: 1: Dr Nguyen Dinh Cung 2: Assoc Prof., Dr Chu Tien Quang Reviewer 1: Assoc Prof., Dr Tran Dinh Thien Reviewer 2: Assoc Prof., Dr Ngo Quang Minh Reviewer 3: Dr Nguyen Van Than The thesis will be defended before the institute-level thesis evaluation council at the Central Institute for Economic Management at… on the date of…… 201… The thesis can be found at: Library of the Central Institute for Economic Management National Library, Hanoi INTRODUCTION The urgency of the thesis Recent studies show that the development of the processing and manufacturing industry in Vietnam over the last two decades mainly depends on micro and small businesses rather than on the increase of the number of medium and large enterprises In fact, very few small-sized enterprises have graduated and grown into medium-sized or large ones One of the reasons for this situation is the low accumulation of capital in enterprises Policy mechanisms have not been effective in promoting the accumulation of capital in enterprises Small size and low level of capital are among the reasons that explain why the majority of enterprises in the manufacturing industry maintain very small scale of their businesses This hinders their ability to access to new, modern technology, to improve productivity and competitiveness In order to solve the problem, the author has chosen the topic "Accumulation of capital in small and medium-sized enterprises in the processing and manufacturing industry in Vietnam" as doctoral thesis topic, majoring in economic management at the Central Institute for Economic Management The objective of the research thesis The general objective of the thesis is to evaluate the current status and propose measures to promote the accumulation of equity capital by the internal resources of SMEs in the processing and manufacturing industry Specific objectives are the followings: - Analyze the theoretical and practical basis for equity accumulation in small and medium-sized enterprises in the processing and manufacturing industry; - Assess the accumulation of equity in small and medium-sized enterprises in the processing and manufacturing industry since 2005 in Vietnam, the role of State, policies and implementation of government policies in this process; - Recommend viewpoints, solutions from the perspective of policies, actions and supporting programs of the State Object and scope of research Object of study: the role of the State and measures on policies mechanism to promote SMEs in the processing, manufacturing industry of Vietnam to accumulate equity capital Throughout the thesis, the connotation of capital accumulation tobe studied is accumulation of equity capital Scope of research: (i) In terms of space: SMEs in the processing and manufacturing industry in Vietnam; (ii) in terms of time: accumulation of the equity capital of SMEs in the processing, manufacturing industry in Vietnam from the year 2005 until now; perspective and vision to 2035; proposed solutions until 2025; (iii) in terms of content: accumulation of equity capital through internal resources of SMEs in the processing and manufacturing industry in Vietnam Approach and methodology 4.1 Approach The approach used in the thesis is from the perspective of state management, i.e the effects of the State role and governmental agencies on the results, limitation and current situation of the accumulation of equity capital of SME in processing and manufacturing sectors Research under the thesis focused on the accumulation of equity capital by internal resources of SMEs in the industry, or the accumulation of capital from retained earnings to be more specific 4.2 Specific research methods The specific research methods include the followings: Descriptive statistics method to describe the current situation of capital accumulation of small and medium enterprises in the processing and manufacturing industry Analyze the correlations between equity capital of SMEs with their competitiveness in the processing and manufacturing industry Policy analysis, analysis of factors affecting the process and the accumulation of equity capital in SMEs in the processing and manufacturing industry The interpolation and extrapolation research methods in order to make policy recommendations in accordance with the object and content of research Contributions of the thesis 5.1 Contribution in academic and theoretical terms The thesis systematically analyzes the theoretical and practical basis of capital accumulation of small and medium enterprises in the processing and manufacturing industry in Vietnam from the level of all SMEs in the processing and manufacturing industry, the role of the State in this process 5.2 Contribution in practical terms The thesis succeeds in proposing views and solutions to accelerate the process of capital accumulation in SMEs in the processing and manufacturing industry, especially the specific measures which the State can implement Structure of the thesis In addition to the introduction, conclusion, bibliography and annexes, the thesis is divided into four chapters Chapter 1: Overview of researches and literature related to capital accumulation in SMEs in processing and manufacturing industry Chapter 2: Theoretical basis for capital accumulation and the role of the state in capital accumulation in SMEs in the processing and manufacturing industry Chapter 3: The current situation of capital accumulation and the role of the State in the capital accumulation of SMEs in the processing and manufacturing industry in Vietnam Chapter 4: Orientation and measures to promote capital accumulation in SMEs in the processing and manufacturing industry in Vietnam in the coming period CHAPTER - OVERVIEW OF RESEARCH RELATED TO CAPITAL ACCUMULATION IN SME IN THE PROCESSING, MANUFACTURING INDUSTRY 1.1 Overview of research published abroad related to capital accumulation of SMEs According to Adam Smith, output value depends on the role of labor rather than wealth or money (labor value theory) Alfred Marshall, in his principles of neoclassical economic growth model in 1890, emphasized the role of technological advances Without denying the role of labor, Marshall said that labor could be substituted by capital According to Karl Marx, capital accumulation is the process in which profits are reinvested in the economy, and thus increasing the total amount of investment Michael Porter stressed that in order to truly enhance national competitiveness, each country should rely on the robust growth of enterprises, which are the nucleus of microeconomics and are the foundation of the national competitiveness Matemilola in his pecking order theory says that firms will look cautiously at the debt / equity ratio Facing an investment decision, an enterprise will consider the use of retained earnings or borrowing or issuing additional shares Frank M.Z.& V.K Goyal (2009) used data from US companies during the period 1950 -2003 and demonstrated that when profits soar, businesses will prioritize the accumulation of capital and reinvest profits to increase its equity capital 1.2 Overview of research related to capital accumulation of SMEs in the country According to VCCI & USAID (2016), 97,6% of enterprises in Vietnam are SMEs The majority of SMEs grow from small enterprises and household businesses Dam Quang Anh (2015) confirms that it is imperative to promote capital accumulation for enterprises operating in the export sector Bach Van Mung et al (2009) argues that "capital accumulation is the process of internal development of a business over time coupled with business results” Dinh Truong Hinh et al (2013) note that "there are many reasons that explain why the government should prioritize the acceleration of the process of capital accumulation and the development of small business into medium and medium sized enterprises, rather than focusing on the formation of too many small enterprises which fail to succeed and have to shut down from year to year" Nguyen Dinh Cung et al (2011) also state that "the lack of management training and the sluggish capital accumulation are clearly major constraint, hindering the improvement of the capacity of Vietnamese enterprises to shift from a production-based economy to a knowledge-based one" CHAPTER –THEORETICAL BASIS OF CAPITAL ACCUMULATION AND THE ROLE OF STATE IN CAPITAL ACCUMULATION OF SMES IN THE PROCESSING AND MANUFACTURING INDUSTRY 2.1 Capital accumulation of small and medium enterprises in the processing and manufacturing industry 2.1.1 Small and medium enterprises in the processing and manufacturing industry According to SME Promotion Law, SMEs have the average number of employees covered by social insurance schemes of less than 200 people and meet one of the following two criteria: (a) total capital not exceeding VND 100 billion; (b) total revenue of the preceding year not exceeding VND 300 billion According to GSO, the number of SMEs in the processing and manufacturing sector increased from 10,399 in 2000 to 63,244 in 2014 2.1.2 The nature, role and accumulation of capital of characteristics small and of the medium-sized enterprises in the processing and manufacturing industry Equity capital of SMEs in the whole processing and manufacturing industry, and the process of accumulation of equity capital by internal resources of these enterprises is the focus and scope of the thesis Equity capital being studied is measured by the aggregate equity capital of SMEs in the entire processing and manufacturing industry over the years Equity capital accumulation is defined as the growth of equity over the years by the internal resources of the business itself Self-accumulation of equity is made through changes in internal capital resources of the enterprise such as chartered capital, retained profits, appropriation of funds for reserve for technical development and to supplement charter capital 2.1.3 Content and method of capital accumulation of SME in the processing and manufacturing industry In the course of business, the equity capital of the business may be supplemented by the profit of the business operations, reserves of the enterprise, and by the difference in the revaluation of assets Equity capital accumulation from internal resources is to increase the capital based on the accumulated profits and surplus value, converting part of the profits into capital In the course of operations, businesses will balance the accumulation of equity by internal resources with the mobilization and use of external capital 2.1.4 Criteria for assessing the impact of the role of the State on the capital accumulation of SMEs in the processing and manufacturing sector The state plays an important role in the process of accumulation of equity capital in the processing and manufacturing industry The effectiveness of the implementation of these roles is reflected in the following criteria: (i) The ease of doing business demonstrated typically by the Ease of Doing Business Index announced annually by the World Bank (WB); (ii) Level of informal costs: Informal costs are the costs that businesses must spend in the process of production and business and take the form of under-the-table costs (Iii) Effectiveness and efficiency of monetary, credit, fiscal and tax policies Monetary and credit policies whose effectiveness of it is reflected by the bank lending interest rate Bank lending interest rates have direct impact to profitability of SME in the manufacturing sector At the same time, they affect the ability and motivation to accumulate equity capital from internal sources of SMEs in the processing and manufacturing industry (iv) Effectiveness of business-nurturing policies through favorable policies on taxes and payables to the State budget, applicable to SME in the processing and manufacturing industry The policy on taxes and payable to State budget applicable to SMEs in the manufacturing sector have a 11 2.3 International experience on the role of the state in promoting SME capital accumulation Nordic countries such as Finland, Denmark and Sweden are good examples for improving business environment Some countries such as the UK or the Netherlands take measures to improve profitability and thus capacity to retain profit of SMEs or to encourage businesses to reinvest to expand Singapore allows enterprises to enjoy tax rates of lower than 5% (compared to the general tax rate of 17%) for a period of 10 years, extendable by another years, applicable to income ploughed back to expand investment or business CHAPTER – CURRENT SITUATION OF CAPITAL ACCUMULATION AND THE ROLE OF THE STATE IN CAPITAL ACCUMULATION OF SMES IN THE PROCESSING AND MANUFACTURING INDUSTRY IN VIETNAM Overview of the development of the processing and manufacturing industry and small and medium enterprises in the sector 3.1.1 Overview of the development of the processing and manufacturing industry in Vietnam In 2016, industrial production was a bright spot in the economy with a high growth rate of 7.5% And in the 7.5% growth of the industry in the year, it is worth noting that much of the growth is attributed to the processing and manufacturing industry The Ministry of Industry and Trade has set a target of industrial production growth of 8-9% for 2017 and the 12 upcoming years At the same time, the manufacturing and processing industries are also oriented towards reducing assembly and processing work In addition, more efforts will be put on enhancing the sophistication of the product, thus contributing more to the global value chain These developments bring about great opportunities for SMEs in the processing and manufacturing in Vietnam At the same time, they will also expose SMEs to huge challenges 3.1.2 Overview of the development of SMEs in the processing and manufacturing industry in Vietnam The number of SMEs in the processing and manufacturing industry has increased rapidly from 10,399 enterprises in 2000 to 63,244 enterprises in 2014 Over the last 14 years, an average of 3,800 enterprises have been registered annually in the processing and manufacturing industry In 2006, the number of micro and small enterprises was 21,926 By 2013, the number of small and micro enterprises is 54,220 enterprises Analysis of current situation of capital accumulation of SMEs in the processing and manufacturing industry in Vietnam 3.2.1 Current situation, results in capital accumulation of SMEs in the processing manufacturing industry 13 Equity capital is the basis for enterprises to mobilize other funds sources, making up the total capital and forming the total assets for the enterprise Figure 3.7: Accumulation and growth of equity capital and total capital of SMEs in processing, manufacturing industry Source: Annual Enterprise Survey, the GSO (2015) Enterprises in the processing and manufacturing sectors are of very small scale The average equity capital per enterprise of the whole industry is merely VND 19.3 billion Given the small scale of equity capital, it is extremely difficult for these businesses to invest heavily in modern technology, advanced production methods in order to improve the competitiveness of the sector 3.2.2 Limitations and challenges facing processing and manufacturing SMEs in capital accumulation its impact to competitiveness of the business and of the sector Small scale of equity capital, limited capital accumulation capacity of SMEs in the manufacturing industry 14 have a direct impact to the competitiveness of the whole industry, such as profitability, value added and labor productivity - the key factors presenting the competitiveness of the processing and manufacturing industry in Vietnam in general and of SMEs in the industry in particular Table 3.4: Some indicators on the relationship between equity capital and competitiveness of SMEs in the processing and manufacturing industry between 2005- 2014 2005 2007 Profit before tax / equity ratio (%) Micro enterprises -4.18% 0.09% Small business 4.08% 6.60% Medium enterprises 8.21% 13.17% Large enterprises 12.98% 17.31% The value added / equity ratio (%) Micro 41.4% 43.0% enterprises Small business 60.3% 58.7% Medium 80.3% 74.6% enterprises Large 78.5% 76.8% enterprises 2009 2010 2012 2014 -9.94% 6.27% -3.12% 5.04% -3.00% 1.96% -3.59% 3.31% 15.67% 9.99% 8.50% 10.77% 18.66% 18.10% 16.61% 20.89% 111.8% 56.6% 36.7% 40.1% 58.0% 71.3% 64.0% 73.6% 63.2% 68.8% 63.1% 71.8% 65.0% 76.7% 90.3% 84.5% Source: Author calculation on the basis of Annual Enterprise Survey, the General Statistics Office (2015) The number of SMEs in the processing and manufacturing industry, which is running at loss, is quite large Approximately 1/3 of enterprises in the processing, manufacturing has been losing for years Losses have negative impact on capital accumulation capacity of SMEs 15 Total Manufacturing Figure 3.13: Proportion (%) of SMEs in the processing and manufacturing industry which were running losses and that of the entire corporate sector Source: VCCI (2016), Vietnam Business Annual Report 2015 3 Current status of the role of the State in capital accumulation in small and medium-sized enterprises in the processing and manufacturing industry in Vietnam 3.3.1 The main result achieved In recent years, tremendous efforts have been implemented by the State to ensure the freedom to business of the people This stimulates the entrepreneurial spirit of the people Most notable of all, the Enterprise Law, the Investment Law has brought about a boom of SMEs in general and has contributed directly to the capital accumulation process of SMEs in the processing and manufacturing industry manufacturing in particular 3.3.2 Limitations and causes However, there still exist limitations and weaknesses in terms of the role of the State in order to further promote the process of capital accumulation and development of SMEs in the processing and manufacturing industry in Vietnam 16 3.3.2.1 The business environment is not favorable withthe high cost of doing business, thus hampering the capacity to accumulate capital High costs of doing business narrow the room for the use of retained earnings to increase equity capital among manufacturing SMEs Business environment has direct impact on the profitability of the businesses in the processing and manufacturing industry According to the Ease of Doing Business Index in 2017 by the World Bank, Vietnam ranked 82 out of 190 economies with a score of 63.83 on a scale of 100 3.3.2 High informal cost simultaneously has strong impact on the capacity and the motivation of capital accumulation Figure 3.18 Percentage of firms that stated that their businesses pay informal charges (%) Source: Report on PCI in 2015, Chamber of Commerce and Industry of Vietnam (2016) Fact has shown that the informal costs have direct impact on resource allocation, capital accumulation in enterprises in general and enterprises of processing and manufacturing sectors in particular Informal costs distort the allocation of resources 17 by the market Besides, informal costs shatter the dynamics, motivation to invest of business owners Informal costs erode business confidence, thwart the idea of starting a business According to VCCI (2016), SMEs which paid informal expenses has now become popular 3.3.2.3 Ineffective financial, monetary and credit policies result in high interest rates, tdirectly affecting the profitability and retained earnings High interest rates results in increased costs and reduced efficiency of business; many enterprises suffered losses or unable to pay debt These directly affect the capital accumulation of enterprises in the processing and manufacturing sectors The average interest rate of commercial banks Figure 3.19: ROA and ROE of the enterprises in processing and manufacturing industry and the average lending rate of commercial banks Source: "Annual Business Report 2015 Vietnam", VCCI and "2015 Annual Report 2015 of the State Bank”, the State Bank 18 3.3.2.4 Unfavorability of policies and regulations on taxes and payable the budget does no promote capital accumulation of SME in the manufacturing industry Figure 3.20 shows the fact that in proportional terms, the smaller the size of the enterprise is, the higher the burden of taxes and payables to the State budget Besides, the growth rate of the taxes and other payables to the budget in the micro and small enterprises is much faster than the improvement rate in pre-tax profits of these enterprises Figure 3.20: Profit before tax, taxes and payables to the budget of the enterprises in the manufacturing industry 19 Source: Annual Enterprise Survey, the GSO (2015) This shows an imperative requirement for policies which are aimed at nurturing businesses, and to provide more support to operations of micro and small enterprises so they can improve financial performance, creating preconditions for this enterprise grow into a larger scale 3.3.2.5 Effectiveness of Government programs to support the vision, capacity and motivation for capital accumulation of SMEs in the processing and manufacturing sectors Long-term vision and business strategy of SMEs have direct impacts on the motivation and decision to accumulate the equity capital of the business owners State policies have a direct impact to the motivation and the decision to accumulate capital of SMEs CHAPTER – ORIENTATION AND SOLUTIONS TO PROMOTE CAPITAL ACCUMULATION OF SMES IN THE PROCESSING, MANUFACTURING SECTOR IN VIETNAM IN THE COMING PERIOD 4.1 Context and the orientation of SME development in the processing and manufacturing in Vietnam to the year 2035 4.1.1 Context, development orientation of the processing and manufacturing industry in Vietnam by 2025 and vision to 2035 Vietnam is persistent in the target of becoming an industrialized country The objective is that by 2035, the industry sector in Vietnam will develop with the majority of its sub-sector being equipped with advanced technology The quality products will meet international standards; participating 20 in global value chain; energy saving; fair competition in internation integration 4.1.2 Orientation for the development of small and medium enterprises in the processing and manufacturing sectors until 2035 The processing, manufacturing industry will gradually shift from the growth model which is primarily based on quantity to one which based on productivity, quality and efficiency Measures will be taken to promote the development of industries and industrial products which have high added value, and large export value Businesses, especially SMEs in the sector will be important pillars of the process of adjusting to this growth model 4.2 Viewpoints on the promotion of capital accumulation in SMEs in the processing and manufacturing industry in Vietnam The development of the processing and manufacturing industry in Vietnam and capital accumulation process must be based on the following important viewpoints and principles: The capital accumulation must be promoted by enforcement mechanisms or polices which are consistent with market principles, development rules and rules of resource allocation of the market Measures to promote capital accumulation in the small and medium-sized manufacturing enterprises industry international commitments in Vietnam the processing should conform and to 21 The capital accumulation of SMEs in the processing and manufacturing sector should be in line with the ongoing efforts to restructure the economy, improve the competitiveness of the economy, green growth goals, sustainable development objectives, enhancing corporate social responsibility for the protection of the living environment and social security The capital accumulation process of SMEs in the processing and manufacturing sector need to be linked with efforts to improve productivity, efficiency, competitiveness of the enterprises 4.3 Solutions for the State to promote capital accumulation of the small and medium-sized enterprises 4.3.1 Creating a policy, law, business environment to facilitate the building of capacity and motivation for capital accumulation of the enterprises 4.3.1.1 Improve business environment and the indicators of the business environment The State should take firm actions to implement measures to reform the business environment, particularly in the areas of compliance costs Improving the ranking of Vietnam position in the Doing Business will be accompanied with business environment reforms measures These will bring direct benefits in terms of strengthening the capacity and motivation to accumulate equity of SMEs in the processing and manufacturing industry 4.3.1.2 Accelerate reforms of administrative procedures; enhance the quality of public services, building governance integrity to reduce legal compliance costs and informal costs 22 The Government should promote the implementation of actions aimed at building a transparent business environment, Government integrity, and low informal costs Efforts toeffectively implement the program of institutional reform, reform of the operational quality of the public authorities, as well as the action programs through Resolutions such as Resolution 19, Resolution 35, etc should be accelerated 4.3.2 Effective use of monetary, credit policies, fiscal, tax policy instruments to improve capital accumulation capability and the motivation to accumulate equity of SMEs 4.3.2.1 Improving the effectiveness of the monetary and credit polices to reduce interest rates and the cost of funds related to bank loans The State, through monetary and credit policies, and with sound macroeconomic management measures, plays an important role in maintaining inflation at a reasonable level The State can use monetary market policy instruments in order to ensure the stability and soundness of the lending rate 4.3.2.2 Implement policies to nurture enterprises, especially SMEs in the processing and manufacturing industry through policies to relax tax and payables to the State budget Policies on income tax enterprises should also be adjusted in order to encourage businesses to reinvest and plough back profits in the production and business, thus improving the capacity and level of financial autonomy of the business These are important precondition for renewing technology, machinery and equipment 23 4.3.2.3 Introduce tax incentives to encourage small and medium-sized enterprises to retain profits to supplement equity capital and to reinvest profits to expand the business Encouraging reinvestment of profits is extremely important for any single business Looking from the perspective of the entire processing and manufacturing industry, this is even more significant, particularly given the very low capital base of the industry, the capacity of financial autonomy as well as the modest technology and machinery of the sector 4.3.3 Support the improvement in awareness about, vision in capital accumulation and implementation of SME support programs to support capital accumulation of SMEs 4.3.3.1 Enact and implement policies to raise awareness on the importance of the accumulation of equity capital and of raising the capital base of SMEs in the processing and manufacturing industry Awareness and understanding of the importance of the accumulation of equity capital and strengthening the capital base of SMEs in the processing, manufacturing industry is the premise and basis for further action, policies and programs to support manufacturing SME to accumulate its capital 4.3.3.2 Implement programs to support SMEs in the processing, manufacturing industry to build long-term vision and strategies for sustainable development SME support programs and programs supporting the processing and manufacturing industry should focus on helping SMEs to build up a long-term vision and strategy for the development The support activities should also aim to change 24 the awareness of SMEs on equity capital accumulation, how to select the relevant methods to accumulate equity capital, especially from internal resources GENERAL CONCLUSIONS Equity capital accumulation and improving the capacity and the scale of owners’ capital is critically important for Vietnamese SME to shift from a factor-based economy to a knowledge-based one To accelerate the accumulation of capital in SMEs in the processing and manufacturing industry, the State plays a very important role The thesis has achieved the objectives set out initially However, the thesis still has some limitations Despite strenuous efforts by the doctoral student, some of the data are yet to be most updated In the coming time, the doctoral student will continue to deepen and broad the analysis on the theme of the doctoral thesis The student will also collect and observe data, analyze and update data in order to deepen further the analytical work with the aim of proposing more suitable solutions to the State 25 LIST OF WORKS PUBLISHED BY THE AUTHOR RELATED TO THE THEME OF THE THESIS Le Duy Binh (2017), "Promoting capital accumulation in SME in the manufacturing industry to improve the competitiveness of the industry", Journal of Economic Management, No 82, May + June/2017, pages 14-25 Le Duy Binh (2017), " Factors affecting the equity capital accumulation in SME in the manufacturing industry in Vietnam ", Journal of Economic Studies, Issue 2, March 2/2017 (465), pages 63-71 Le Duy Binh (2017), " Promoting equity capital accumulation of the business in the manufacturing industry ", Journal of Economics and Forecasting, Issue May 02 / 2017 (645), pages 32-34 Le Duy Binh (2017), " Impact of some payables to the State budget on the ability of enterprises to accumulate capital", Journal of Finance, May 02/2017 (651), pages 72 -74 Le Duy Binh (2012), “VietSoftware International Inc.: The Journey to Become an International Player”, the APEC Secretariat ISBN 978-981-07-4884-5, pages 145-156 Le Duy Binh (2010), “Moving from necessity-driven entrepreneurial activity to development of high performance SMEs in Viet Nam”, TechMonitor Journal, UNESCAP Vol 27 No 4, Jul-Aug 2010, pages 3 -41 Le Duy Binh (2005), "Improving the Quality of Business Environment Reforms in Vietnam", GTZ, pages 65-82 ... industry in Vietnam by 2025 and vision to 2035 Vietnam is persistent in the target of becoming an industrialized country The objective is that by 2035, the industry sector in Vietnam will develop... manufacturing industry in Vietnam Chapter 4: Orientation and measures to promote capital accumulation in SMEs in the processing and manufacturing industry in Vietnam in the coming period CHAPTER... manufacturing in Vietnam At the same time, they will also expose SMEs to huge challenges 3.1.2 Overview of the development of SMEs in the processing and manufacturing industry in Vietnam The number