Compilation of input–output table by firm size using non-survey method: analyzing the role of SMEs in Vietnam in 2015 and 2021

Abstract This study aims to explore a method for compiling input–output (I–O) table by firm size: specifically for small and medium enterprises (SMEs) and large enterprises (LEs), using a non-survey method. As a pioneering approach, this study constructs I–O tables by firm size of Vietnam for the years 2015 and 2021 using Vietnamese firm-survey data. The RAS method is employed in allocating intermediate inputs and inter-trade between SMEs and LEs. Non-surveyed method takes less time and cost for constructing I–O table by firm size. This study then investigates the role of SMEs in the Vietnamese economy. The results highlight the significant contributions of SMEs to Vietnam's economy, particularly in key manufacturing sectors, such as food, beverage, and tobacco; wood and wood products; pulp, paper, and printing; and manufacturing, nec, and recycling, from the demand side. In addition, the analysis presents a strong inter-connection between SMEs and LEs in the agriculture sector, chemical and chemical product sectors, and basic metals and fabricated metal sectors. SMEs in these sectors contribute to LEs’ production and Vietnam’s economy. Supporting SMEs in these sectors can be beneficial to the economic growth and industrialization of Vietnam.