This paper aims to analyze the current export activities of SMEs in Vietnam as well as study the impact of innovation on the likelihood of exporting in SMEs in Vietnam and thereby proposing the governance implications to improve export activities of SMEs in Vietnam. Based on the reviewed literature, the researcher hypothesizes that the more firms engage in innovation activities, the higher their export propensity will be. The survey of small and medium-scale manufacturing enterprises (SMEs) in Vietnam conducted in 2015 is used to examine the link between innovation activities and export. The results from probit regression reveal that firms that introduced new products are more likely to export and that firms introducing new processes or new technology are more likely to become exporters. From the findings, theoretical and managerial implications are proposed in this study.