HCM CITY — Vietnamese small and medium-sized businesses (SMBs) are showing remarkable resilience in overcoming the challenges of globalisation, according to a newly-released report entitled SMB Ambitions Barometer for Việt Nam by Payoneer.

The second annual report reveals that while global expansion remains a key priority for the country's SMBs, achieving this goal requires overcoming challenges by leveraging the right talent and advanced technologies, including AI.

Việt Vũ, country manager of Payoneer in Việt Nam, said that the company’s survey highlighted the rapid adoption of technologies and diversification of networks of SMBs, all while remaining committed to strengthening the local economy. 

“By leveraging their strengths and resources, they’re positioning themselves for global growth and long-term success. It’s an exciting time as these SMBs play a crucial role in driving the country’s economic growth," Việt said.

According to the survey, Việt Nam’s SMBs remain focused on global expansion – and they’ve been reaping the benefits so far.

With the US, China, and Australia as the top three markets for sending and receiving payments, these businesses have experienced growth in key areas including new customers, innovation, high-quality supply, access to vendors, and financial performance. 

To maintain this momentum and safeguard against external threats, Vietnamese SMBs are diversifying their customer and vendor networks, with 63 per cent believing this approach helps protect them from disruptions.

SMBs are embracing digitisation to overcome barriers to global expansion.

The report named top challenges including high business costs, accessing capital and inconsistent financial performance, high debt-to-income ratios, and limited personal or professional networks. 

However, it said, with the right technology and talent in place, businesses are finding these obstacles more manageable. 

In fact, 58 per cent of companies said digitisation reduced barriers to entering international markets, and 77 per cent believe the pace of technological change is driving innovation. Many Vietnamese SMBs are increasing their AI adoption, with 26 per cent using it to improve customer service, aligning with the global average. 

However, some are still lagging in areas like content creation, inventory management, and merchandising.

Despite their global growth ambitions, Vietnamese SMBs are committed to supporting the local economy by creating jobs and generating revenue for their communities.

Nearly two-thirds are prioritising local hiring and are optimistic about both their growth and the future of Việt Nam's economy. Some 79 per cent are confident in their ability to increase revenue over the next 12 months, and 82 per cent expect improvements in the local economy. 

As the local economy strengthens, SMB performance improves, which in turn further boosts the local economy. More than two-thirds of Vietnamese SMB owners rely on their business as the only source of family income.

The SMB Ambitions Barometer, a joint initiative by Payoneer and Oxford Economics, surveyed 3,779 SMBs across 15 countries, including over 250 SMBs in Việt Nam, in early 2024 to identify key factors driving their growth. 

Payoneer’s second annual SMB Ambitions Barometer surveyed decision-makers such as CFO/Finance Director, CEO/owner and managers at 3,779 SMBs to examine their progress, goals, and barriers to success. — VNS