Lack of funds hinders SMEs’ growthMicro, small and medium-sized enterprises (SMEs) account for nearly 97 per cent of the total number of businesses in HCM City, with more than 90 per cent of newly-established ones every year belonging to this category. A steel company at the Tan Tao industrial park in HCM City. Due to their lack of resources, small and medium-sized enterprises cannot upgrade technology or invest in research and development. Do Phuoc Tong, chairman of the HCM City Association of Mechanical Electrical Enterprises, told Sai Gon Giai Phong (Liberated Sai Gon) newspaper that most mechanical enterprises are SMEs or household businesses. But local enterprises have to pay 10 per cent import tariff on the same stuff.