Developing the SME Performance Indicator Matrix for ADB

  The small and medium enterprises (SME) sector in Vietnam has experienced impressive growth rates in the last few years. They are on a steady trend to reach 500,000 enterprises by the end of 2010 as targeted by the Government. The growth of the sector has been impressive not only in terms of number of enterprises, but also in terms of revenue, capital, job created, etc.

However, many studies, researches and papers, some of them were also implemented by Economica Vietnam, have suggested that the growth has been mostly in terms of quantity. The quality of the growth of the SME sector in Vietnam has not been paid due attention too.


The SME sector has been receiving considerable support from different donor agencies. Among them, the Asian Development Bank (ADB) has been continuously providing support to the sector in the last decade.


In Vietnam, the ADB have been increasingly interested in improving the quality and the performance of SMEs in Vietnam. As such, the development bank has encouraged the ministries and government agencies in Vietnam to adopt policies and regulations which contribute to strengthening the performance and the quality of the sector.


Under the request of the ADB, Economica Vietnam team have developed an SME Performance Indicator Matrix to measure the quality and the performance of the SME sector in Vietnam. The matrix is backed  with data and statistics to illustrate the performance status of the SME sector in the country. The matrix is also expected to offer a navigational tool, enabling line ministries and government agencies to lay a stronger emphasis in their policies and regulations on the quality of growth rather than just only on the growth in quantity. 

The policy implications of the indicator matrix will be further sent across to many ministries and also to provincial governments. By reviewing international best practices and, the current state of business statistics and enterprise data, Economica Vietnam also suggested a set of indicators which can provide an accurate picture on the growth in quality of SMEs in Vietnamese context. The final report which interprets the indicator matrix also provides suggestions on how the statistics system on SME in particular and on the whole enterprise sectors should be improved to support analysis work, policy making, decision making in issues related to SMEs and enterprise sector.

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