Vietnam's SMEs face a critical 'execution gap' despite digital progress
Vietnamese medium-sized businesses have made progress in recent years by embracing digital tools and diversifying supply chains. Between 2020 and 2025, many firms adopted cloud computing, expanded into e-commerce, and shifted sourcing away from China. Yet despite these gains, turning plans into real-world results remains a persistent challenge for the sector.
At the SME Forum 2026, experts highlighted a critical 'execution gap'—the disconnect between strategy and implementation—that threatens long-term growth.
Vietnam's small and medium enterprises (SMEs) form the backbone of the economy, making up 97-98% of all businesses and contributing nearly half of GDP. Since 2020, many have boosted competitiveness through digital transformation, such as adopting platforms like VNeID and expanding into e-commerce. Others, like Vinamilk and FPT, invested in automation and software to improve efficiency. Supply chain diversification—moving production from China to domestic and ASEAN suppliers—also helped firms navigate US-China trade tensions, while government programmes like the National Digital Transformation Program upskilled workers.
However, global uncertainty, geopolitical risks, and rapid tech changes continue to test resilience. Limited access to funding, managerial expertise, and business networks further complicates adaptation. Experts argue that success now hinges less on strategy itself and more on the ability to execute it. Without stronger management capabilities and clear alignment between operations and business goals, even well-designed plans fail to deliver results.
The SME Forum 2026 underscored this 'knowing vs doing' gap as a key bottleneck. While firms recognise the need for agility, many struggle to act decisively. Supply chains, once seen as cost centres, are now viewed as strategic drivers of profitability—but only if businesses can turn plans into action effectively.
Vietnamese SMEs have made strides in digital adoption and market expansion, yet their future success depends on closing the execution gap. Firms that strengthen management skills and align operations with strategy will be better placed to handle disruptions. For now, the ability to act quickly—and translate plans into measurable outcomes—remains the defining challenge for the sector.
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