Effectiveness Gaps in Policy Frameworks and Institutional Support Mechanisms for MSMEs in Vietnam

This study uses a comparative policy evaluation design to assess five policy domains and 14 support mechanisms for micro, small, and medium-sized enterprise (MSME) development in Vietnam. The findings show that, despite strong macroeconomic performance, Vietnam’s MSME support system remains weak, constrained by institutional weaknesses that limit competitiveness and inclusive growth. The assessment highlights five critical challenges: slow digital transformation, weak integration of environmental sustainability, limited support for women and youth entrepreneurs, low participation in exports, and a widening gap with ASEAN peers in forward-looking reforms. These systemic barriers prevent MSMEs from fully contributing to growth, global value chains, and environmental, social, and governance (ESG)-compliant markets. The study concludes that Vietnam’s MSME support framework has not kept pace with emerging demands, with significant gaps between policy design and execution. To address these challenges, a phased roadmap is recommended, focussing on digitalisation and inclusive entrepreneurship in the short term, green finance and export clusters in the medium term, and structural reform, such as circular economy integration and regional benchmarking, in the long term.