This paper analyses the differentials of productive values in Vietnamese micro, small,
and medium enterprises (MSMEs) and how market constraints have hindered their performance.
Quantitative analyses suggest substantial differences in value addition among manufacturing
MSMEs, and the crucial contribution of technology adoption to their development. We assess
MSMEs’ productive value, production organization and performance using qualitative analysis.
Our case studies identify market failures hindering MSMEs’ potential; explain their strengths and
weaknesses; and assess how the market structure influences their production costs and business
strategies. Drawing from these insights, we suggest policy options to strengthen capability and
competitiveness of Vietnamese’ MSMEs