The impact of government policy and land accessibility to the development of SMEs: Do industrial cluster and network models work in Vietnam?

This study examines how the state can act an entrepreneurial role to influence the creation of a sustainable market factors and land infrastructure conditions to support SMEs. The findings suggest that transitional economies such as Vietnam need to take some specific measures to create conditions to encourage entrepreneurial activities and for small and medium enterprises (SMEs) to find opportunities to grow in different sectors of the economy as well as forming industrial cluster to utilize resource efficiency. The findings indicate that in the absence of strong market forces in a Vietnamese transitional economy, the state has to play a decisive role to create those conditions. In addition, the study highlights that cultural factor has an impact on entrepreneurial activities, especially in forming of industrial cluster, linkages and networking for cooperation and utilizing resources. Failure to identify such critical factor will be a serious mistake to hinder the progress of supporting SMEs growth and forming of industrial clusters in Vietnam.