This study examines the relationship between political connections and firm survival of manufacturing small and medium-sized enterprises in Vietnam with firm surveys from 2007 to 2015. Using survival analysis and the Cox model, politically connected firms are found less likely to exit than non-connected firms.

Educated and experienced owners lower exit rates for their firms and household firms survive better than other forms of business ownership. However, political connections might not be associated with higher productivity. This study raises a discussion about the role of the government in governing business activities in Vietnam.