Summary of Doctoral thesis in Economics: Development of small and medium commercial enterprises in Ha Tinh province

MINISTRY OF EDUCATION AND TRAINING
THUONG MAI UNIVERSITY
-------------------------

HOANG SI NAM

DEVELOPMENT OF SMALL AND
MEDIUM COMMERCIAL ENTERPRISES
IN HA TINH PROVINCE
Major: Economic management
Code: 62.34.04.10

SUMMARY OF DOCTORAL THESIS IN
ECONOMICS

Ha Noi- 2018


The thesis is completed at Thuong Mai University
Academic supervisor:
Supervisor 1: Assoc.Prof. Nguyen Thi Bich Loan
Supervisor 2: Dr. Chu Thi Thuy

Refree 1:
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Refree 2:
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Refree 3:
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The thesis will be defended in front of the university’s of thesis
evaluation committee at:……………………………….………

The thesis can be found at: - National Library
- Thuong Mai University’s Library


OPENING
1. The urgency of the topic
Small and medium enterprises (SMEs) in general and SMEs
in particular are important to the overall development of the
economies of the world. That role is expressed through the attention
and recognition of the governments of countries around the world.
Governments and local governments have issued many policies to
support sme's development
According to the association of SMEs (Vinasme), SMEs
operate in many different fields such as manufacturing, industry,
construction, agriculture, forestry, fisheries and commerce in order to
create more jobs, increase income for laborers, contribute to socioeconomic development in general. SMEs account for about 97% of
all registered companies in Vietnam. These enterprises contribute
over 40% of total domestic income, generating over half a million
workers per year, accounting for 51% of total employment, of which
SMEs account for a large proportion (about 70%) of total SMEs in
Vietnam.
This proves that in recent years the Government of Vietnam
has issued many policies to support SMEs in general and SMEs in
particular development. Government policies have created favorable
conditions for localities to develop a system of policies to support
development of enterprises in order to boost the socio-economic

development of localities, contributing to the development of socioEconomic development of the country. In fact, many localities have
succeeded in helping SMEs to develop such as Binh Duong province,
Dong Nai province, Ho Chi Minh city, Da Nang city.
However, there is a fact that SMEs are often profitable,
obsolete technologies, and therefore have no economies of scale.
Therefore, in order to solve difficulties and improve competitiveness,
creating sustainable development for SMEs should have long-term
policy solutions to support enterprises.
With the role of SMEs in the key economy is the connection
between production and consumption, create more jobs suitable for
large population, help create value for goods and services. To
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promote the development of market economy, international
integration, trade liberalization and the building of an independent
and autonomous economy.
It can be said that SMEs are developing and operating very
dynamically and in accordance with the conditions and level of
development in our country, in the next time the type of SMEs still
play an important role in the economy front The trade liberalization
wave and the achievements of the 4.0 revolution are strongly applied
in all areas of social life.
In addition, the Law on Enterprises 2005 and Decree 56/2009
/ND-CP of the Government on supporting development of SMEs;
Particularly, the Small and Medium Enterprises Promotion Law was
promulgated on June 12, 2017 and came into effect January 1, 2018,
confirming the Government's interest, properly evaluating the role of
SMEs The legal framework is important for supporting sme's
development. This will facilitate the development of SMEs in general

and SMEs in particular. By the end of 2016, there were 4,432 SMEs,
of which 2,158 were SMEs, accounting for 49.7% of total SMEs,
contributing to the province's GRDP by 10.65%.
It can be said that in recent years, the province's SMEs have
achieved remarkable results such as the increase in quantity, medium
scale, diversified forms of ownership, creating many jobs and
contributing a lot. to the provincial GRDP. The result is that the
province has implemented many solutions and issued many policies
to support SMEs in general and SMEs in particular development Ha
Tinh province has created a favorable environment for individuals,
Organizing the establishment of enterprises as facilitating the
establishment and establishment of enterprises; Implement policies to
support business development in accessing capital; PAR; inspecting
and supervising the operation of enterprises; To plan and build smalland medium-sized industrial parks and complexes so as to perfect the
infrastructures in service of the local business. Besides, there are still
some drawbacks. Specifically, most of the SMEs have weak financial
resources, low technology, small scale, poor quality of human
resources, the internal business development is not firm, lack of
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business strategy. long-term business, ... and not fully promote the
potential available in the locality.
Ha Tinh is a province in the North Central Region, which is
associated with the East-West Economic Corridor, in the process of
integration of the country. However, due to many objective and
subjective reasons, the development of small and medium enterprises
in the province has not been sustainable, the efficiency of operation is
not high and not actively promoted. its role.
In addition, in the context of the 4.0 industrial revolution,

international economic integration and accession to new FTAs, poses
many challenges to the provincial SMEs in the province. Ha Tinh.
Starting from the reasons on the author selected topic:
"Development of small and medium enterprises in Ha Tinh province"
as a doctoral thesis.
2. Literatute review
2.1. Foreign research
Tran Thi Bich (2008), "Productivity, efficiency and
institutions: economic reforms and non-state manufacturing
companies in VietNam"; Nguyen The Quan (2009), "Developing
astrategic model for small- and medium-sized construction firms in
Vietnam; Dang Duc Son (2007), "Developing a sound financial
reporting medium for small and medium companies in VietNam",
David Begg (2007), "Economics"; ARI KOKKO (2004), "The
Internationalization of Vietnamese", OECD (2009), "The Impact of
the Global Crisis on SMEs and Entrepreneurship Financing and
Policy Responses; Marchese, M. & J. Potter (2010),
"Entrepreneurship, SMEs and Local Development in Andalusia,
Spain", OECD.
2.2. Domestic research
Le Xuan Ba, Tran Kim Hao, Nguyen Huu Thang (2006),
"Small and medium enterprises in Vietnam in the context of
international economic integration"; Nguyen Vinh Thanh (2005),
"Enhancing the competitiveness of Vietnamese commercial
enterprises in international economic integration"; Le Du Phong
(2006), "Small and Medium-Sized Enterprises Development in the
3


Field of Science and Technology, Hungarian Experience and

Application in Vietnam"; Tran Kim Hao (2005), "Business Service
Market for Small and Medium Enterprises in Vietnam: Current
Situation and Solutions"; Dinh Van Thanh (2012), "Research on the
scientific foundation for the development of Vietnam's trade in the
period 2011-2020";Nguyen Thi Lan Anh (2012), "Development of
management human resources of small and medium enterprises in
Thai Nguyen province"; Le Anh Dung (2003), "Renovation of the
State management mechanism for small and medium enterprises in
Ho Chi Minh City"; Man Ba Dat (2009), "The Development of NonState Small and Medium Enterprises in Bac Ninh Province, 19972003, Situation, Experience and Solutions"; Tran Van Hoa (2007),
Small and Medium Enterprise Development in Rural Thua Thien Hue
"; Pham Van Hong (2007), "Small and Medium Enterprise
Development in Vietnam in the Process of International Integration";
Tran Thi Van Hoa (2003), "The Impact of Macroeconomic
Regulatory Policy on the Development of Small and Medium
Enterprises in Vietnam; Pham Thuy Hong (2004), "Developing
competitive strategies for small and medium enterprises in Vietnam
in the process of integrating into the world economy"; Le Thi My
Linh (2009), "Development of human resources in small and medium
enterprises in Vietnam in the process of international economic
integration"; Le Quang Manh (2011), "Promoting the role of the state
in the development of small and medium enterprises in Vietnam";
Thai Van Re (2011), "Small and medium enterprises in Ho Chi Minh
City after Vietnam joined the World Trade Organization (WTO); Ha
Quy Sang (2010), "Financial solutions, accounting for small and
medium enterprises in Vietnam"; Chu Thi Thuy (2003), "Some
solutions to improve business performance of small and medium
enterprises in Vietnam"; Nguyen The Binh (2013), "International
experience on policies supporting small and medium enterprises
development and lessons for Vietnam"; Nguyen Thi Lam Ha (2007),
"Experience building and developing business incubators in China

and lessons for Vietnam"; Pham Xuan Hoa (2013), "Experience
building taxation systems supporting small and medium enterprises
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in some countries"; Tran Ngoc Hung & Do Thi Phi Hoai (2013),
"Support for Small and Medium Enterprises Development of
Agricultural Products in the North of Central Vietnam"; Dao Duy
Huan & Duy Duy Tung (2012), "Restructuring of Small and Medium
Enterprises in Vietnam; Doctor Kiem (2013), "Small and Medium
Enterprises: Situation and Solutions in 2013"; Le Thi My Linh (2009),
"Demand for support from the State and international organizations
of small and medium enterprises"; Besides the above documents,
there are many textbooks, articles, as well as seminars and seminars
related to SME development such as e-commerce curriculum (2103),
Bach Khoa- Hanoi, the basic e-commerce curriculum, the University
of Commerce, the curriculum on state management of commerce
(2015) by the author Than Danh Phuc, University of Commerce ...
In general, many domestic and foreign researches have
developed a theoretical framework for SME development, theories of
SME development and solutions for SME development in different
localities. Therefore, NCS inherit the theoretical framework for SME
development. However, few works mention the content and criteria
for assessing the development of SMEs in terms of economic
management. On the other hand, there is no specific study on the
situation of SME development in Ha Tinh province in the recent time.
From that, we propose some solutions to develop the SMEs.
3. Purposes and research duties
3.1. Research purposes
The dissertation proposes measures to develop SMEs in Ha

Tinh province, contributing to socio-economic development of the
province.
3.2. Research duties
- To systematize and deeply clarify the basic arguments for
developing the SMEs; to identify the major factors affecting the
development of SMEs.
- Analyzing the situation of developing SMEs in Ha Tinh
province in the recent time, assessing the achievements, limitations of
existence and causes.

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- Proposing some solutions for SME development in Ha Tinh
province in the coming time.
4. Subjects and scope of research
4.1. Research subjects
The research subjects of the project are to develop SMEs in
general and in Ha Tinh province in particular.
4.2. Research scope
- In terms of contents: On the basis of theoretical and
practical analysis of the development of SMEs in Ha Tinh province,
the thesis proposes some main solutions for developing SMEs in Ha
Tinh province.
SME development entities include the state, the enterprises
themselves and the organizations concerned. However, from the
study viewpoint of the thesis, the SME development entity here is the
state. Therefore, the content of SME development is in essence the
content of state management of the development of small and
medium enterprises.

State management of SME development consists of two
levels, namely state management at the central level and state
management at the local level. Within the scope of the thesis research,
the content of SME development is approached from the perspective
of state management at the local level (provincial level).
- In terms of time: The data used in the study of the thesis
was collected from 2011 to 2016, solutions proposed to develop the
SMEs to 2025, vision by 2030.
- In terms of spaces: The main thesis on research on SMEs in
Ha Tinh province.
5. Research methodology
5.1. Methodology
Methodology of dialectical materialism and historical
materialism: used as a basis for the study.
5.2. Specific research methods
5.2.1. Data collection methods
5.2.1.1. Method of secondary data collection

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To collect secondary data for the research process, the author
conducted the collection process including the following steps:
Step 1: Identify the data needed for the study
Step 2: Determine the secondary data to be collected from
the external source (data type and source data).
Step 3: Conduct secondary data collection
Step 4: Conduct a detailed study of the data value
Step 5: Form the secondary data to be collected for use in the
thesis from the original sources

5.2.1.2. Primary data collection method
Primary data was collected from two sources through direct
questionnaires distributed to the respondents.
Primary sampling method
- The first object: representatives of the small and medium
enterprises (representatives of the Board of Directors or members of
the Board of Directors)
- Second object: Representatives of managers of local state
management agencies.
5.2.2. Data processing methods
5.2.2.1. Secondary data processing method
Based on the collected secondary data, statistical methods
used to describe, analyze, compare, synthesize and evaluate such as:
compare the fluctuation (increase, decrease) the number of
enterprises through each year, then calculate the rate of increase,
decrease average during the study period. Determining the proportion
of SMEs in the total number of SMEs, summarizing the indicators on
the efficiency of using human resources such as profit, profitability ...
From then analysis and evaluation of trends of change (increase,
decrease) through years.
5.2.2.2. Primary data processing methods
Based on the primary data, the authors sum up the data from
the questionnaire. The author uses the Microsoft Excel program and
the SPSS statistical annalysis program to process, synthesize and
analyze data according to the research content. However, This study

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mainly uses descriptive statistics to analyze and evaluate information

(presented in Appendix 04, 05).
6. Contributions of the thesis
New theoretical contributions
The dissertation has clarified some basic theories on the
development of small and medium commercial enterprises such as
concepts, the building of evaluation criteria system; The contents of
developing small and medium commercial enterprises are approached
from economic management perspective such as creating the
favorable environment and conditions for the establishment of small
and medium commercial enterprises, implementing support policies
for the operation of small and medium commercial enterprises,
implementing administrative reform to create favorable conditions
for the development of small and medium commercial enterprises...
The thesis has identified factors affecting the development of small
and medium commercial enterprises such as the orientation and
restructure of the Government; the local socio-economic
development; scientific and technological development; natural
conditions and local infrastructure, qualification and capability of
state management officials…
New conclusions about the current situation
Based on the practical experience of some local provinces
such as Nghe An, Thanh Hoa, Quang Nam, the thesis has drawn four
lessons that could be applied to develop small business enterprises
and in Ha Tinh provinces such as creating favorable conditions for
the establishment of small and medium commercial enterprises,
implementing policies to support the development of small and
medium commercial enterprises, implementing administrative reform
to improve the investment environment, removing barriers for
enterprise development; investing in local infrastructure system.
The thesis analyzes the situation of developing small and medium

commercial enterprises in Ha Tinh province in the period from 2011 to
2016. It then evaluates the achievements, points out the limitations and the
causes of the situation. The basic achievements are the rapid increase in
the number of enterprises, the diversification in type of ownership; the
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widespread development of enterprises throughout the province; job
creation for local laborers; the contribution to the economic development
of the province... The main shortcomings are the small size of enterprises
in terms of capital and labor, the concentration of capital on retail trade,
low performance, the low number of jobs created, the modest contribution
to GRDP. The main reason is that the unsuitable support policies for small
and medium enterprises, the limited organizational structure of state
management for enterprises and asynchronous local infrastructure.
New proposals on solutions
The thesis proposes seven groups of measures to develop small
and medium commercial enterprises in Ha Tinh province to 2025, vision
by 2030. The main focuses are creating more favorable environment and
conditions for business registration and establishment, improving the
support policies for enterprises, continuing to implement administrative
reform to create favorable conditions for enterprises to operate
effectively... At the same time, it is necessary to have recommendations to
the Government, Small and Medium Enterprises Association to create
favorable conditions and environment for the implementation of the above
solutions effectively.
7. Structural thesis
Apart from the introduction, conclusion, reference list and
structural appendix of the dissertation are presented in 3 chapters:
Chapter 1. Rationale and experience of some localities on the

development of small and medium commercial enterprises
Chapter 2: Situation of developing small and medium
commercial enterprises in Ha Tinh province.
Chapter 3. Orientations and solutions for development of
small and medium enterprises in Ha Tinh province.
CHAPTER 1
THEORY AND LOCAL EXPERIENCE ON THE
DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISE
ENTERPRISES
1.1. Overview of small and medium commercial enterprises in the
economy
1.1.1. Concepts and characteristics of small and medium enterprises
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1.1.1.1. Concept and criteria for identifying small and medium
enterprises
The thesis uses the concept to identify SMEs in Vietnam as
follows: "SMEs are enterprises with chartered capital of less than
VND 100 billion and average number of employees less than 300
people per year."
1.1.1.2. Characteristics of small and medium enterprises
SMEs have limited resources such as capital, human
resources, technology; management capacity of managers with low
qualifications, lack of experience and skills in management and
operation of enterprises; Operating mainly in the field of trading.
1.1.2. Concept, characteristics and role of small and medium
commercial enterprises
1.1.2.1. The concept of small and medium commercial enterprises
Within the scope of the study, by the author: Commercial

enterprises are the type of enterprises established for the purpose of
conducting commercial activities.
Doanh nghiệp thương mại nhỏ và vừa ở Việt nam là các
doanh
Small and medium sized commercial enterprises in Vietnam
are enterprises that satisfy both the following conditions:
(1) It is an enterprise that accounts for more than 50% of the
total turnover of the business.
(2) Being an enterprise with a chartered capital of less than
VND 50 billion and an annual average labor force of less than 100
employees [6, P.2].
1.1.2.2. Characteristics of small and medium commercial enterprises
First of all, the operation of the DNP is not the same as the
other enterprises, including economic processes, technical
organizations ... in the customer's business is the central character
with the motto "customer is the first priority".
Secondly, the private sector has an indispensable link with
each other, which forms the economic and technical sector, in terms
of relatively loose technology, but is very tight on the socio-

10


economic angle and thus exists. in the laws recognized and respected.
That is the very nature of the trading guild.
Thirdly, SMEs nowadays are the intermediate link between
production and trade in goods and services, so the development of
SMEs has indirect effects on all sectors of the national economy.
SMEs are very large. In particular, in the period of international
economic integration, trade liberalization will create great

commercial value contributing to the overall development of the
economy.
With the above characteristics, it can be seen that DNI has a
great role in the socio-economic development of countries in the world.
Those features have certain advantages and limitations.
1.1.2.3. The role of small and medium commercial enterprises in the
economy
Firstly, it directly contributes to the growth of the trade sector,
thus contributing to the economic growth of the country.
Secondly, SMEs have an important role in transforming the
economic structure towards industrialization and modernization.
Thirdly, contribute to the dynamic economy, maintain the
freedom of competition, democratization and efficiency, contributing to
the strengthening and development of economic relations.
Fourthly, create more jobs, increase income for laborers,
stabilizing social politics.
Fifth, facilitate the incubation of entrepreneurial talent.
Sixth, attract capital and resources available in society.
1.2. The concept and norms for evaluating the development of
small and medium commercial enterprises
1.2.1. The concept of developing small and medium commercial
enterprises
According to the author, SME development is understood as
follows: The development of SMEs is the increase in the quantity and
quality of the SMEs, the improvement of the performance of the
small and medium enterprises, ensuring the structure of the SMEs in
line with the economic structure. To contribute to local economic and
social development.
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1.2.2. Criteria for evaluating the development of small and medium
commercial enterprises
- Number and size of medium enterprises
- SME performance
- Level of contribution to local socio-economic development
1.3. State management of small and medium enterprise
development
- Creating the environment and conditions for the birth of the
small and medium enterprises
- Implement policies to support the operation of SMEs
- The administrative reform aims to create favorable
conditions for SMEs to operate effectively
- Checking and supervising the operation of the small and
medium enterprises
1.4. The basic factors affecting the development of small and
medium commercial enterprises
- Orientation of economic restructuring of the Government
- Socio-economic conditions of the locality
- Level of scientific and technological development
- Natural conditions and infrastructure of the locality
- Qualification and capacity of the contingent of State
management officials
- International economic integration and globalization
- Internal factors of small and medium commercial
enterprises (business strategy, financial resources, human resources
quality, business position)
1.5. Experience developing small and medium enterprises in
some localities and lessons learned from the local
1.5.1. Experience developing small and medium enterprises in some

localities
- Experience in Nghe An province
- Experience in Thanh Hoa province
- Experience in Quang Nam
1.5.2. Some lessons on developing small and medium enterprises for Ha
Tinh province
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To formulate plans on development of small and medium
commercial enterprises; To implement policies to support the
development of small and medium commercial enterprises; reforming
administrative procedures to improve the investment environment,
removing difficulties for SMEs; To invest in the development of local
infrastructure
CHAPTER 2
SITUATION OF DEVELOPMENT OF SMALL AND MEDIUM
TRADING ENTERPRISES IN HA TINH PROVINCE
2.1. Overview of Ha Tinh province and the situation of
developing small and medium enterprises in Ha Tinh province
2.1.1. Overview of Ha Tinh Province
2.1.2. The situation of developing small and medium commercial
enterprises in Ha Tinh province according to evaluation criteria
2.1.2.1. The quantity and average size of small and medium
enterprises in Ha Tinh province
2.1.2.2. Structure of small and medium enterprises in Ha Tinh
province
2.1.2.3. Effectiveness of small and medium enterprises in Ha Tinh
province
2.1.2.4. Contributing to the economic and social development of Ha

Tinh province
2.2. Analyze the status of state management of small and medium
enterprises in Ha Tinh province
2.2.1. Creating the environment and conditions for the establishment
of small and medium commercial enterprises
The number of licensed SMEs in the period from 2011 to
2016 is as follows: in 2011 there were 259 enterprises; 151
companies in 2012; in 2013 there are 66 enterprises; 2014 businesses
have 205; By 2015, there will be 105 enterprises; In 2016 there were
430 enterprises.
In general, at this stage, the number of registered enterprises
annually varies from year to year. Specifically: in 2011 the number of
registered business is 259 (Enterprises), in 2012 and 2013 tend to
decrease. However, in 2016, due to environmental problems affecting
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the overall economic development of the province, the number of
registered enterprises is 430 (Enterprises).
2.2.2. To implement the policy of supporting the development of
small and medium commercial enterprises
2.2.2.1. Policy to support access to capital for small and medium
commercial enterprises
First, interest rate support loans
According to the assessment of local SMEs, up to 12% of
businesses think that lending rates are very high, 24% of businesses
rated high and 41% said it was normal, while only 3% Very low and
20% rated low. This proves that despite the fact that the Central State
and especially the local authorities have promulgated policies to
support loans for SMEs, lending rates still remain a big obstacle for

enterprises in the locality.
Second, support access to capital
To evaluate the possibility of implementing policies to
support enterprises in the province. The evaluation from the
managers of the results are as follows:
Only 16% of enterprises have good access to state
management; 52% of businesses are normal; the remaining 32% are
poor in accessing provincial loan support funds.
In summary, small and medium enterprises are facing many
difficulties in accessing domestic and foreign capital. Although the
government and local governments have recently adopted policies to
significantly improve access to capital for small and medium-sized
businesses by supporting interest rates on loans, establishing The
credit funds reserved for this object, the reform of administrative
procedures, the loosening of loan conditions, the expansion of
mortgage assets, etc., have not yet resolved the shortage of capital for
enterprises. . The common situation is that many enterprises have
difficulties in accessing capital, the process of borrowing is time
consuming and costly. In addition, many businesses submitted loan
applications declined because they did not meet the requirements of
financial information, accounting and feasibility of production and
business projects. In addition, due to limited internal capacity of
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enterprises, many enterprises do not have access to the policies of the
Government and localities when implementing.
2.2.2.2. Tax support policy
In general, the tax support policy has shown the
Government's concern for enterprises, there are many tax policies to

motivate and encourage the development of SMEs in both quantity
and quality, thereby contributing to the increase. However, according
to the assessment of managers of small and medium enterprises, there
are still many problems that need to be resolved, such as some
complicated tax regulations on administrative procedures, longstanding tax examination and Trouble for businesses.
2.2.2.3. Land and Business Support Policy
2.2.2.4. Policy support trade promotion
According to the SME's, the evaluation of trade promotion
activities supports the development of small and medium enterprises on a
scale from 1 to 5 according to the gradual increase: none of enterprises rated
at 1-very poor and 5-very good measure, good evaluation (8%), average
(78.1%), poor (13.9%). Thus, standing on the side of the trade activities are
still limited, even not good. The advantages of small and medium
enterprises are not promoted.

2.2.3. The administrative reform will create favorable conditions for
the development of small and medium commercial enterprises
2.2.4. To inspect and supervise the operation of small and medium
commercial enterprises
2.3. Analysis of factors affecting the development of small and
medium enterprises in Ha Tinh province
2.3.1. Orientation of economic restructuring of the Government
To assess the impact of orientation on structural change to
the development of the small and medium enterprises. According to
the evaluation of SMEs, 35 out of 137 enterprises rated good at
25.55%; 33 companies rated good 24.1%; 57 normal enterprises
accounted for 41.6%; 7 enterprises rated low 4.65%; Five companies
rated very poorly accounted for 4.1%.
In general, the orientation of the province's restructuring has
an impact on the SME sector in the province. This is due to the shift

of agriculture, forestry and fishery to industry, construction and trade,
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which has led to the shift of human resources, along with the
economic development policy. The development of industry,
construction and trade will create favorable conditions for the
development of small and medium enterprises.
2.2.3.2. The socio-economic development situation of the province
2.3.3. Level of science and technology development
In general, the level of science and technology of the
province is limited compared to some provinces and cities across the
country. Research and application of science and technology has not
met the requirements of economic development of the province, not
much contribution of scientific value. Although the provincial
People's Committee has issued a number of documents and policies
related to the development of science and technology. However, state
management of science and technology, patents, standards of product
quality, product labels, ... have not met development requirements in
the current period. Policies that encourage enterprises to innovate and
apply modern science and technology in business management are
promulgated but lack of synchronism, not really bring big benefits for
enterprises.
In addition, the quality of science and technology researchers
has been improved, but they still lack experience, have not attracted
good experts and qualified in all fields. On the part of SMEs due to
limited capital, accumulated profits are not high, most of the SMEs
have not set aside funds to develop science and technology, not
interested in the application of modern science and technology in
management, management and business. business.

2.3.4. Natural conditions and infrastructure of the province
2.3.5. Qualification and capacity of the State management staff
2.3.6. International economic integration and globalization
2.3.7. Internal factors of small and medium enterprises in Ha Tinh
province
2.4. A general assessment of the status of small and medium
enterprises development in Ha Tinh province
2.4.1. Achievements and causes
2.4.1.1 Achievements
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Firstly, the enterprises are rapidly increasing in number and
diversification in terms of business types and types of ownership,
thus contributing to the growth and economic restructuring of the
province.
Secondly, SMEs are widely distributed throughout the
province, thereby contributing to the exploitation of scattered
resources from all sectors in the society, economic components in
each locality to serve the whole needs. and contribute to the creation
of jobs and income for local workers. The important achievement is
that many of the SMEs in mountainous areas, newly established
districts are facing many difficulties, creating jobs and employment
for local laborers, contributing to economic development in the
locality.
Thirdly, the development of SMEs in the province has
promoted the market economy development. Although the formation
of a market economy will create a competitive environment that
directly impacts the operation of the small and medium enterprises, it
poses the need to improve the market economy, ensuring healthy

competition. But the increase in the number and type of activities of
SMEs is also a factor promoting the healthy development of the
modern market economy. Over time, state owned enterprises are
being rearranged and equitized according to the policy of the State to
create favorable conditions for the State-owned enterprises to focus
on key areas, creating the necessary premises for SMEs continue to
develop and at the same time contribute to improving the efficiency
of SOEs.
Fourthly, the business capacity of SMEs is reflected in the
increase in capital size, the number of employees, the level of labor
has been improved step by step, the business efficiency has been
improved ... contributing to the accumulation To increase investment
in innovating business methods more and more effectively in the
direction of market economy and international economic integration.
Fifthly, the development of provincial SMEs in recent years
has contributed to increasing local budget revenue, creating a value
chain linking businesses in the province.
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2.4.1.2. Cause of the achievements
Objective objective: Government economic development
policy has limited the economic downturn. Policies to support
enterprises in general and SMEs in particular more and more open
and favorable conditions create conditions for businesses in the
province.
Subjective reasons:
Firstly,The People's Committee of Ha Tinh province has
stepped up propaganda and issued comprehensive policies to support
SMEs in the province, creating the most favorable conditions for

administrative procedures, land and capital for enterprises to
approach Production and business expansion and expansion,
sustainable development.
Secondly, The issuance of business licenses and appraisal of
investment projects shall be effected according to the mechanism of
one, transfer and public posting of dossiers, fee rates and settlement
time of each work, issued by the provincial / municipal Planning and
Investment Services Assume the prime responsibility for, and
coordinate with the concerned departments and branches in, settling
the procedures for registration of establishment of enterprises to
ensure the quality, process and shorten the time for enterprises.
Thirdly, The SME sector in the province develops the
available resources of enterprises from mobilizing internal resources,
mobilizing and mobilizing external resources to organize and develop
business to bring benefits to enterprises. The promotion of socioeconomic development.
2.4.2. Limitations, Existence and Cause
2.4.2.1. Limitations, exist
Firstly, the size of most of the small and medium enterprises
in the province is very small in terms of capital and labor, thus
causing difficulties in developing and expanding the size of
enterprises and improving business efficiency, reducing the closure.
Contribute to the provincial budget.
Secondly, the majority of SMEs in the province still focus on
retail trade and transportation services, while other sectors are still
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underdeveloped. The development of small and medium enterprises
is still concentrated in large centers and urban centers of the
province.

Thirdly, the performance of small and medium enterprises
(SMEs) is reflected in such indicators as turnover, profitability,
profitability, low labor productivity, causing difficulties in expanding
production and business scale. .
Fourthly, SMEs generate jobs for the province's laborers, as
well as contribute to the province's total product output. However, the
contribution to the province's socio-economic situation is low and
does not match the potential of the province. the development of
SMEs.
2.4.2.2. Causes of limitations, exist
Objective reasons:
Firstly, the system of policy documents supporting SMEs of
the Central Government was promulgated but not synchronized and
specifically, some contents of the policy are not suitable with the
actual situation of the local.
Secondly, Ha Tinh is not geographically localized to attract
local and foreign investors to invest in localities, weather conditions
and climate are complicated. The psychology of investors and
enterprises in the province.
Thirdly, in the context of domestic and global economic
turbulence, the long-term economic downturn has affected the
efficiency of SME development policies. credit support policies, tax
support policies, policies to support investment promotion, ... affect
the operation of investors and businesses.
Subjective reasons:
Firstly, the province does not currently have a specific SME
development plan in the short or long term. This leads to the
development of enterprises in the province in general and SMEs in
particular are spontaneous and follow the trend of market demand
without linking with the province's socio-economic development

plans. Orientation of economic restructuring of the province.

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Secondly, the implementation of policies to support the
development of small and medium enterprises in the province is
facing many difficulties. Many policies have broad support, not for
small and medium enterprises, some policies support content is not
suitable for SMEs.
Thirdly, the establishment of the SME managerial apparatus
in the province is the common responsibility of many branches, many
levels and many organizations of the province. However, in practice,
the management is still limited, not systematic, overlapping due to
legal regulations that do not clarify the role of the focal point for state
management of the development of small and medium enterprises.
This issue is quite fuzzy. The coordination among agencies in the
field of developing small and medium enterprises is limited, not
effective for SMEs. PAR of the province has made many positive
changes in the recent past. However, there are still a number of
cumbersome administrative procedures, administrative procedures
for small and medium enterprises have encountered many difficulties
and prolonged time.
Fourthly, the capacity and level of the management team of
the State in the province has many positive changes, but there still
exist some cadres and civil servants in inappropriate positions, the
reception and treatment The information processing is slow, affecting
the efficiency of the work and cause difficulties for businesses.
Fifthly, the infrastructure system of the province has been
invested but not synchronized, the infrastructure is only developed in

urban areas and industrial parks.
CHAPTER 3
DIRECTION AND SOLUTIONS TO DEVELOP SMALL AND
MEDIUM TRADING ENTERPRISES IN HA TINH
PROVINCE
3.1. The socio-economic development objectives and orientations
in Ha Tinh province up to 2025 with a vision to 2030
3.1.1. Domestic and international contexts influence the development
of small and medium commercial enterprises
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3.1.2. The socio-economic development goals and orientations of Ha
Tinh province up to 2025 with a vision to 2030
3.1.2.1. Socio-economic Development Goals in Ha Tinh up to 2025
with a vision to 2030
3.1.2.2. Socio-economic development orientation of Ha Tinh up to
2025 with a vision to 2030
- Development orientation of trade and services
- Development orientation of industry - construction
- Orientations for development of agriculture, forestry and
fishery
- Orientations for scientific and technological development
3.1.3. Development orientation of small and medium enterprises in
Ha Tinh province to 2025, vision to 2030
First, the development orientation of small and medium
commercial enterprises under the trade of goods and services trade
Second, the development of small and medium commercial
enterprises distributed by region
Third, the development of small and medium-sized

commercial enterprises belonging to the private sector, the
restructuring of state trading enterprises
Fourth, to promote the development of small and medium
enterprises (SMEs) in the direction of cooperation, cooperation and
enhancement of competitiveness.
Fifth, enhance the effectiveness of policies to develop small
and medium commercial enterprises
Sixth, development of small and medium commercial
enterprises associated with the protection of the environment
Seventh, continue to implement administrative reform in a
way to create conditions for small and medium commercial
enterprises to develop
3.2. Proposing some solutions to develop small and medium
enterprises in Ha Tinh province
3.2.1. To create more favorable conditions for business registration
and establishment of small and medium commercial enterprises

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3.2.2. Better implementation of policies supporting the development
of small and medium commercial enterprises
Firstly, to help Ha Tinh province's SMEs develop a plan and
business plan to minimize risks and improve their ability to cope with
market changes.
Secondly, to improve the financial capacity, competitiveness,
efficiency of using resources of enterprises, to ensure sufficient
resources for enterprises, take advantage of opportunities and limit
the challenges encountered to survive and play. .
Thirdly, to build and expand business markets, joint ventures

and joint ventures in investment, creating many opportunities for
business cooperation, making full use of capital resources, advanced
science and technology and capacity. Modern management helps
SMEs to be active in business.
Therefore, in order to help the SMEs grow in width and
depth, the following policies should be completed in the coming time.
- Policy to support access to credit capital
- Policy on land support and business premises
- Policy on trade promotion support
3.2.3. To continue implementing administrative reform to create
favorable conditions for small and medium commercial enterprises to
operate effectively
3.2.4. To enhance the inspection and supervision of the operation of
small and medium commercial enterprises
3.2.5. Improve the management capacity of small and medium
enterprises
3.2.6. Improve the internal capacity of small and medium commercial
enterprises

(1) Develop and improve the business strategy of the
business
(2) Improve the efficiency of mobilizing and using capital in
enterprises
(3) Enhancing management capacity for business leaders
(4) Improve the quality of human resources in enterprises

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(5) Applying science-technology to develop e-commerce in

enterprises

(6) Enhancing the expansion of joint-venture cooperation,
linking and joining trade associations and boosting export activities
3.2.7. Some other solutions
3.2.7.1. To improve and modernize the province's infrastructure
3.2.7.2. Development of business support services for small and
medium commercial enterprises
3.3. Some recommendations to the State and Small and Medium
Enterprises Association
3.3.1. Some recommendations to the State
3.3.2. Some recommendations for small and medium business
associations
CONCLUDE
In socio-economic development of countries in the world,
SMEs in particular and SMEs play a very important role. In recent
years, SME development in general and small and medium
enterprises in particular in Ha Tinh province have seen rapid
development in the number and structure of SMEs, the number of
SMEs in the province is widely distributed throughout the province,
capital size of enterprises tends to increase. In addition to the
development of quantity and structure, the development of SMEs in
the province has improved the efficiency of production and business,
the average profit of enterprises tends to increase and contribute to
the budget of the province in the period 2010-2015 increase
Strengthen, create jobs, raise income for laborers. Despite the abovementioned results, there are still some limitations in the province.
Determining the objectives, subjects, scope and methods of
dissertation research has been carried out on the basis of the
following tasks:
Firstly, systematize and clarify basic arguments for SME

development such as concepts, characteristics, evaluation criteria,
content of SME development and factors affecting the development
of small and medium enterprises.

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