Balancing Economic Interests and Social Responsibility in Small and Medium-Sized Enterprises: A Stakeholder Theory Perspective between Vietnam and China

Small and medium-sized enterprises (SMEs) play a dominant role in the economies of both Vietnam and China, contributing significantly to employment, economic growth, and innovation. However, their importance also raises a fundamental challenge: how to balance economic objectives with social responsibility toward employees, consumers, communities, and the environment. Although Vietnamese law provides extensive support for SME development, stakeholder protection remains fragmented across labour, environmental, and consumer-protection legislation, while the Law on Enterprises lacks an explicit stakeholder-oriented corporate-purpose provision. By contrast, China has introduced stakeholder considerations into company law through Article 20 of the 2023 Company Law, yet concerns remain regarding its enforceability and practical effectiveness. Against this backdrop, this paper employs stakeholder theory and a comparative legal approach to examine the regulatory frameworks of Vietnam and China, identify their similarities and differences, and propose legal reforms for Vietnam aimed at strengthening stakeholderoriented governance while preserving the competitiveness and sustainability of SMEs.