Many of Vietnam's small businesses have reportied both strong growth and strong 
usage of digital technology – factors that make them better placed than many 
other small businesses across the Asia-Pacific region to manage through the 
COVID-19 crisis and recover quickly, according to a recent survey by CPA 
Australia.

While the survey was conducted prior to the global COVID-19 pandemic, CPA 
Australia's Asia-Pacific Small Business Survey 2019-20 found that many of 
Vietnam's small businesses entered the current crisis with healthy finances, 
with 95 per cent reporting that they grew in 2019, the highest result of the 11 
markets surveyed. 

Online sales are already an important part of many of Vietnam's small 
businesses, with over 60 per cent generating more than 10 per cent of their 
revenue through online sales in 2019.These businesses are arguably better 
placed to respond to changes in consumer behaviour caused by COVID-19. 

CPA Australia's Manager of Business and Investment Policy, Mr Gavan Ord warned 
that while the results from the survey were very positive for many small 
businesses in Vietnam, past performance is no guarantee of future success, 
particularly in the current uncertain environment. 

"As with any crisis of this magnitude, small businesses have little margin for 
error. Prudent management, focusing on the changing needs of customers and even 
greater adoption of technology – rather than good fortune – will be essential 
to business recovery and ongoing future success. 

"The business you had before this pandemic hit will not be the same as the 
business you have after the pandemic abates and economic activity picks up 
again. Small business owners face the challenge of adapting their businesses to 
'a new normal' at a time when accessing finance may prove difficult, although 
stimulus measures by the government are easing that particular challenge.

"The very strong focus of Vietnam's small business sector on technology is not 
only helping them to quickly improve their profitability, it is placing them in 
a very good position to capitalise on any business opportunities emerging from 
COVID-19.

"Vietnam's small businesses are not only focusing on tried and tested 
technologies, they are by far the most likely to have invested in artificial 
intelligence in 2019, potentially creating further opportunities for long-term 
growth," Ord said. 

The top four factors that had a positive influence on Vietnam's small 
businesses in 2019 were: 

- Technology
- Improved customer satisfaction
- Good staff; and
- Customer loyalty.

"Our survey results continue to show that year after year, through both good 
times and bad times such as these, businesses with a focus on their customers, 
technology and strategy are much more likely to grow strongly than other 
businesses. 

"While it is wise to focus on cash flow and financial health at this time, 
businesses should also be looking to how they can meet the fast-changing needs 
of customers, especially through increasing online sales," Ord said. 

CPA Australia has the following suggestions for small business in this 
difficult period: 

- Focus on improving cash flow and your financial health
- Utilise technology and online sales to meet changing consumer behaviour
- Capitalise on your existing pool of loyal customers
- Dedicate any spare time you may have to developing and implementing a 
  recovery plan, and learning about industry trends and emerging technologies
  and how they can be applied to your business
- If you are in a relatively strong financial position, look for opportunities
  in the recovery
- Seek professional advice. 


                             -ENDS-

Key links:
- Key statistics for Vietnam from the small business survey (English)
- Asia-Pacific Small Business Survey 2019-20 (full report) (English)

PowerPoint presentation of survey results is available on request 

Other CPA Australia resources to assist small businesses during COVID-19

- Roadmap to Recovery
- Business Recovery from COVID-19: Tips for Small Business
- Checklist of possible actions to help your business manage through COVID-19
- COVID-19 – key implications for boards
- Tips for building customer trust when selling online

About the CPA Australia Asia-Pacific Small Business Survey
 
The CPA Australia Asia-Pacific Small Business Survey provides annual insights 
into the views of small businesses across the region and forms part of a 
longitudinal study that began in 2009. The 11th CPA Australia annual survey 
comprised extensive surveying of 4,193 small business operators in eleven 
markets, including Indonesia, Australia, Hong Kong, India, Malaysia, Mainland 
China, New Zealand, Philippines, Singapore, Taiwan and Vietnam. The survey was 
conducted between 18 November and 12 December 2019 prior to the COVID-19 
pandemic.  

About CPA Australia 

CPA Australia is one of the world's largest accounting bodies, with more than 
165,000 members working in 100 countries and regions and supported by 19 
offices globally. Our core services to members include education, training, 
technical support and advocacy. Employees and members work together with local 
and international bodies to represent the views and concerns of the profession 
to governments, regulators, industries, academia and the community. Visit 
cpaaustralia.com.au 

SOURCE: CPA Australia