Vietnam’s small businesses record strongest growth since 2014

Small businesses in Vietnam experienced very strong growth in 2017, with many businesses embracing technology, investing in innovation and exporting products and services – all key drivers of business growth, according to a new survey released today.

The findings, from CPA Australia’s eighth annual Asia-Pacific Small Business Survey, follow extensive surveying of nearly 3,000 small business operators in Malaysia, Vietnam, Indonesia, Hong Kong, Singapore, Australia, New Zealand and Mainland China.

CPA Australia Head of Policy, Paul Drum FCPA, said that 2017 had been a stellar year for Vietnam’s small businesses and they were on track to record strong growth again in 2018.

“In 2017, 90.7 per cent of Vietnam’s small businesses reported growing, the second highest result of the markets included in this survey, and the highest result for Vietnam since 2014.

“Many Vietnamese small businesses grew at a faster pace than in previous years. 41.5 per cent reported that they grew very strongly – up from 23.9 per cent in 2016.

“This extremely positive result is likely to continue in 2018, with 93.7 per cent of Vietnam’s small businesses expecting to grow over the coming 12 months – the second highest result of this survey, just behind Indonesia (94.8 per cent), and significantly better than Australia (55.6 per cent).

“We’re pleased to see so many small businesses from Vietnam are strong adopters of new technology. The vast majority of Vietnam’s small businesses use social media in their business and are earning significant revenue through online sales. Over seven in ten small businesses are earning more than ten per cent of their revenue from that channel,” Drum said.

The strong level of investment in technology in Vietnam is producing benefits for a clear majority of small businesses, with 76.4 per cent of respondents stating that their investment in technology over the past 12 months has already resulted in improvements in their profitability – the second highest result of the markets surveyed.

“This result, plus Vietnam’s strong business confidence, will no doubt encourage further investment in technology and assist Vietnam’s small business sector to become more globally competitive and successful,” Drum said.

Vietnam’s small businesses continue to be highly innovative, with 41.9 per cent expecting to introduce a new product, process or service in 2018 – again, the second highest result for the markets surveyed, and the highest ever result for Vietnam.

“The innovative business culture in Vietnam is likely to result in a more competitive small business sector and stronger economic growth,” Drum said.

Another key factor driving expected growth in Vietnam’s small business sector is exports - with 51.2 per cent of respondents expecting their revenue from overseas sales to increase strongly in 2018; the highest result of the markets surveyed.

“A focus on exporting not only helps to grow revenue, it can also expose small businesses to ideas that might improve their competitiveness and profitability,” Drum said.

The CPA Australia Asia-Pacific Small Business Survey provides annual insights into the views of small businesses across the region and forms part of a longitudinal study that began in 2009.

A summary of survey results for Vietnam (in English) can be viewed here:

The full results of the CPA Australia Asia-Pacific Small Business Survey (in English) can be viewed here:


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