Vietnamese SMEs struggle to turn bold plans into real growth

Vietnamese small and medium-sized enterprises (SMEs) face a critical hurdle: turning plans into action. Despite strong ambitions and clear strategies, many struggle to bridge the gap between ideas and execution. This challenge threatens their growth in an increasingly volatile global market.

SMEs form the backbone of Vietnam's economy, making up 97-98% of all businesses and contributing nearly half of the country's GDP. Yet their ability to scale up and stay competitive hinges on overcoming the 'knowing-doing' gap—a persistent disconnect between strategy and implementation.

Global pressures, from economic uncertainty to rapid technological shifts, demand that businesses balance growth with adaptability. For Vietnamese SMEs, structural weaknesses in organisational systems and operational efficiency often slow progress. Limited access to capital, management expertise, and strong business networks further complicates their ability to respond to market changes. Experts argue that success now depends less on strategy alone and more on the ability to execute it effectively. Supply chains, when managed as strategic drivers, can directly boost profitability and cash flow. VPBank reports that over 100,000 Vietnamese SMEs have grown into multi-billion-dong enterprises since their founding, proving that decisive action can lead to long-term success.

The future of Vietnamese SMEs will rely on their capacity to close the execution gap. Those that can translate strategy into concrete results will navigate global disruptions more effectively. With the right operational systems and decisive leadership, these businesses can sustain growth and strengthen their market position.