Micro Businesses in Vietnam: Common Issues and Management Practices

Abstract

The research study employs qualitative method to identify the management problems and common practices of managing micro businesses in Ho Chi Minh City, Vietnam. Primary data for the research are collected by observations and interviews with managers and employees of 19 micro enterprises. The research study reveals similar problems and deficiency of resources necessary for management of micro firms identified in previous studies among investigated businesses, such as the lack of important resources from finance, credit and marketing skills, managerial skills and mindset to growth. However, it is particularly discovered that micro businesses in Vietnam rely on a sophisticated group of resources which utilized effectively within the cultural context of the country. The resources do not help creating more business but seem ensuring the survival of the micro firms well. Overall impression was the risk-avoiding attitude limits the growth options of the enterprises. Some suggestions on further research in the context of micro businesses are then made.