Enterprise Growth and Survival in Vietnam: Does Government Support Matter?

Henrik Hansen, John Rand and Finn Tarp

Journal of Development Studies, 2009, vol. 45, issue 7, 1048-1069

Abstract: This paper analyses whether direct government assistance during start-up and other forms of interaction with the state sector have influenced the long-run performance of small and medium-sized manufacturing enterprises (SMEs) in Vietnam. Using three partly overlapping surveys during the period 1990-2000, we find strong effects on firm dynamics from interaction with state institutions. Enterprises which have the state sector as their main customer perform better. This is so for both survival and growth. Moreover, temporary tax exemptions during firm start-up had a separate and positive influence on long-run growth for non-household enterprises and initial credit support seems to benefit rural firms.

Date: 2009
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DOI: 10.1080/00220380902811025

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