The purpose of this study is to develop a model of Resource-based View (RBV) and to analyze the competitiveness of Manado Small and Medium firms (SMEs) in facing the ASEAN Economic Community (AEC), based on valuable, rare, inimitable and non-substituable (VRIN) resources of Resource-based View (RBV). To answer these purposes, the proportional stratified random sampling was conducted by taking 180 small and medium firms (SMEs) in Manado consist of 90 small firms and 90 medium firms. The data were analyzed using qualitative systems dynamic analysis. The results indicated that holistically, syste mic behavior of VRIN resources makes contribution on Manado SMEs competitiveness in facing the implementation of ASEAN Economic Community (AEC), both before and after intervention. Before intervention, decline of VRIN resources makes contribution on decline of the competitiveness of Manado SMEs. On the contrary, after intervention, increase of VRIN resources makes contribution on increase of the competitiveness of Manado SMEs. Partially, rare (R) resources make more contribution than non substitutable (N), imperfectly imitable (I) and valuable (V) resources on competitiveness. It can be concluded that these systemic behavior of VRIN resources make contribution both negatively in declining and positively on increasing competitiveness of Manado SMEs.