SMALL BUSINESS GROWTH SOARS TO FOUR-YEAR HIGH

Vietnamese small businesses experienced a successful 2024, with 82 percent reporting growth, up from 77 percent in 2023-the country’s highest result since 2019, a survey shows.

This momentum is expected to accelerate in 2025, with 92 percent of small businesses expecting to grow, the highest projection among 11 markets surveyed, according to annual small business survey of CPA Australia - one of the largest professional accounting bodies in the world.

Confidence in Viet Nam's economy is equally strong, with 93 percent of small businesses expecting the economy to grow in 2025, well above the Asia-Pacific survey average of 67 percent, and again the highest result among all surveyed markets.

CPA Australia's CEO Chris Freeland attributes this optimism to Viet Nam's young, tech-savvy and entrepreneurial small business community.

Viet Nam's small business sector is driven by dynamic and youthful entrepreneurs that embrace technology and innovation. Their ability to adapt quickly and invest in digital solutions is positioning them as regional leaders, Freeland said.

For example, Viet Nam's small businesses rank at or near the top across the Asia-Pacific in all indicators of tech adoption, including e-commerce, social media use, digital payment options and seeking advice from IT specialists, he added.

Easier access to funding has also fueled growth, with 80 percent of Vietnamese small businesses seeking external finance for growth in 2024, up from 73 percent in 2023.

Viet Nam's small businesses are also becoming more internationally focused. In 2025, 28 percent anticipate strong improvement in overseas sales, up from 15 percent in 2024. This signals growing confidence in their ability to compete globally, despite global uncertainty.

Technology-driven investments continue to give strong and quick returns, with 88 percent of small businesses reporting their investment in technology last year improved their profitability. Notably, AI investment among Viet Nam's small businesses doubled in 2024 to 44 per cent from 2023, with nearly half using AI for business advice.

Viet Nam's small businesses are increasingly willing to experiment and integrate technologies like AI into their operations, Freeland said, adding that while most other markets appear to be taking a more cautious approach, Viet Nam's small businesses are leading the way in AI investment.

CPA Australia is one of the largest professional accounting bodies in the world, with nearly 175,000 members in over 100 countries and regions, including more than 21,000 members in South-East Asia.

Source: VCCI