SME development strategy in Vietnam
Vietnam stands at an important crossroads in its transition from a planned to market oriented economy. Since the implementation of economic reform, starting with Doi Moi in 1986 and supplemented with further reform from 1989, the economy experienced rapid economic growth during the period of the 1990s until 1997. The onset of the financial and economic crisis that afflicted the region in 1997-98, and related decline in foreign direct investment flows, contributed to a slowdown in growth in its immediate aftermath although nowhere near as severe as in a number of other regional economies. Since 2000, however, economic growth has steadily recovered with GDP growth of 7.3 and 7.7 per cent in 2003 and 2004 respectively (ADB, 2005), led by the non-state sector and in particular private sector SMEs and the foreign invested sector.