Buenos Aires (VNA) - Iꦰnfobae, arenowned newspaper in Argentina, has recently published an article by economistDamián Di Pace about the contributions of small and medium-sized enterprises(SMEs) to Vietnam’s economic growth after he visited the Southeast Asiancountry.

According to the article, the Doi Moi (Renewal) process launched by the Communist Party of Vietnam in 1986 has turned Vietnam into a nation with the highest economic growth rate in the world in over 30 years.  The article emphasises that the marketeconomic model under state management has promoted the activities of privatecompanies and enterprises, as well as attracted foreign direct investment. Inthe 1990-1997 period, Vietnam's economy recorded an annual average growth rate of 8%and 7% in the 1999-2022 period. In this process, SMEs play a key role,especially in structural transformation which resulted in a shift in labourproductivity from a low level to a high level. The Doi Moi process has fueledthe growth of SMEs, which today account for 95% of businesses operating inVietnam and half of the manufacturing workforce and contribute 40% ofgross domestic product (GDP). The author highlighted the State's attention andsupport policies for SMEs, as well as the role of foreign-invested enterprisesin the Vietnamese economy.    In addition, the Vietnamese Government follows anorientation to develop supporting industries, particularly sectors likegarments, footwear, electronics, cars, machinery and high technology. It alsohas financial and tax policies to support domestic SMEs to develop and improvecompetitiveness. The article cited forecasts made byconsulting firm PwC which said Vietnam, India and Bangladesh will be the threecountries with the fastest economic growth rates from now to 2050 in the world,at 5% yearly. Regarding the relations between Vietnam andArgentina, the article stressed that Vietnam is an important trade partnerof the Latin American country. Last year, Vietnam imported about 5.5 milliontonnes of agricultural products from Argentina.  

The author also noted that Vietnam's socialist-oriented market economy adheres to both principles - focusing on economic growth and always paying attention to social issues. Vietnam has been making efforts to build a good social security and public service system, ensure fairness, narrow the gap between the rich and the poor, and approach hunger eradication and poverty reduction.

He cited a report from the United Nations Development Program (UNDP) which said within ten years from 2012 t༺o 2021, the poverty rate in Vietnam decreased from 1🧸8.1% to only 4.4%. Vietnam’s income per capita increased from 96 USD in 1989 to 4,163 USD today, one of the highest increases in the world.

However, the article also mentioned thechallenges that Vietnam has to solve in the process of economic developmentsuch as a cumbersome state administrative apparatus, bureaucracy, corruption,economic growth’s heavy reliance on foreign-invested enterprises, expensiveoffice rents and lack of highly skilled labourers./.