The objectives of the research were to
investigate and describe features of financial management practices and financial
characteristics of SMEs in Vietnam, to develop and test a model of SME
profitability, and to contribute knowledge of the relationship between financial
management and characteristics to improve SME profitability by using tools of
efficient financial management. As for other research theses on aspects of SME,
the thesis provided background to SMEs in Vietnam including finance, use of
finance and financial management techniques adopted by managers. In looking at
financial management practices, the researcher examined information systems,
financial reporting, financial analysis, working capital management, fixed asset
management and capital structure management. The thesis developed from
theory, a model showing leakages between financial management practices,
efficient financial management and financial characteristics and the product of
management, small enterprise profitability. This profitability was measured in
terms of profit return on sales, profit return on assets and on equity. Financial
characteristics were measured in terms of liquidity and financial leverage ratios as
well as activity ratios