Promoting SMEs Development in Vietnam : An Approach to Stablize Macro Economic Condition and to Restructure the Economy

Vietnam entered the new development decades with development challenges, including stablizing macro economic condition, restructuring its economy toward higher competitiveness sustainable development. These challenges could be solved thoroughly by targeting the development of SMEs, the major player of its economy. Through examining the technical efficiency of SMEs in Vietnam, their innovation activities, the paper shows that policies makers still have a lot of rooms to help SMEs enhance their production efficiency and therefore their competitiveness. The rationale for policy intervention are (1) the existance of market failure, which hinder SMEs renovation activity and thus their development ; and (2) through SMEs development, government could solve the challenges of restructuring