Small and Medium Enterprises in Tra Vinh Province, Vietnam An examination of problems and prospects

Tra Vinh is one of 63 provinces in Vietnam. It is located in Mekong Delta and is also one of the poorest. The official population of Tra Vinh Province is over one million people. Over 29% of the population’s ethnicity is Khmer. Over 80% of the population is dependent on the agricultural sector. Since the Vietnamese government has implemented Doi Moi (reform) policies (in 1986), Vietnam’s business climate has been quickly improved. The state has followed a market economy and officially admitted that there are various sectors in that economy. The appearance of an enterprise law in Vietnam was a vital mark to develop enterprises in Vietnam. Thanks to the enterprise law, hundreds of SMEs in Tra Vinh started up during the last eight years. In past years, SMEs faced disadvantages in their business activities. However, it had been supported by the local government through implementing policies to promote SMEs. Thanks to their help, it has been exploring comparative advantages in locality to expand their business. SMEs have become one of the important factors which contributes local social-economic development. SMEs have created jobs for the local people to improve their living standards themselves. SMEs have played a vital role in eliminating poverty in Tra Vinh province