The Five Competitive Forces Model of Porter was developed in 1985 with a view to analyzing fundamental competitive forces facing small and medium-sized enterprises (SMEs) in real estate industry (hereunder referred to as RSMEs for short). The paper also figures out that the competition derives from threats from internal factors, customers, suppliers, established rivals and the entry of new rivals. | Development of small & medium-siZed enterprises The Five Competitive Forces Model of Porter was developed in 1985 with a view to analyzing fundamental competitive forces facing small and medium-sized enterprises (SMEs) in real estate industry (hereunder referred to as RSMEs for short). Findings have shown that the existence of RSMEs, previous to 2007, is thanks to open monetary policies, the collaboration with state-run enterprises and mobilization of citizens’ capital. In the context of closer economic integration, RSMEs have been menaced by the harsh competition of FDI-supported enterprises. Besides, inflation seems to make the RSMEs go pale and drawn due to the fact that tight monetary policies have been employed, causing a rise in investment interest rate and a curb on the credit demand, and accordingly an impediment to the mobilization of deposits. The paper also figures out that the competition derives from threats from internal factors, customers, suppliers, established rivals, and the entry of new rivals. The origin of competitive forces facing RSMEs is from inefficiency of financial instruments in the realty industry, and the lack of collaboration among RSMEs and between RSMEs and large-sized enterprises. Thus, in order to restrain adverse impacts of competitive forces on RSMEs, the government should establish a legal corridor that can facilitate the birth of appropriate financial instruments for the sake of realty industry, and stimulate the collaboration between RSMEs and large-sized enterprises and other sectors. Keywords: competitive forces, small and medium-sized enterprises in the realty industry (RSMEs), financial instruments for the sake of realty industry. 1. Introduction the realty industry is deemed as a driving force behind the economic growth, especially in newly emerging economies (united nations Human settlements program, cited in troïng Haø, 2011). in vietnam, realty industry, although a new economy, has reached a rapid growth over .
