Impacts of Globalization on Vietnam: The Ability of Small and Medium Enterprises to Cope with Opportunities and Challenges

Abstract

This study aims to contribute to the discussion of the effects of globalization on the competitiveness of small and medium enterprises in Vietnam. The two main research questions that will be addressed in this study are. (i) How does globalization affect our country's competitiveness of small and medium enterprises (SMEs)? (ii) How can small and medium enterprises (SMEs) adapt to the opportunities and challenges that arise from globalization? The methodology for this study is conceptualized to review existing research and make some recommendations on how SMEs can adapt to the opportunities and challenges of emerging markets participating in globalization. Research results have focused on building and establishing institutions, including factors affecting the competitiveness of enterprises. The results also show that the capacity of enterprises related to innovation, learning, and internationalization readiness, will increase the competitiveness of enterprises. Second, establishing relationships with governmental and non-governmental organizations is believed to be crucial in accessing resources, innovation, and entering international markets. Although globalization has brought significant benefits to many actors worldwide, its impact on the competitiveness of small and medium enterprises (SMEs) remains controversial. The results allow us to conclude that the impact of globalization depends on the ability of businesses to learn and innovate and also on the institutional setting of the government.