The private sector plays a pivotal role
Ho Van Long – Deputy General Director and Director of Retail Banking VIB shared at the event on the morning of 05/08/2025.
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Mr. Ho Van Long – Deputy General Director and Director of Retail Banking VIB stated that the private sector – in which SMEs account for 98% of the total number of enterprises – always plays a pivotal role in the socio-economic development of Vietnam. This sector currently contributes more than 50% of GDP, 30% of the state budget revenue, and creates more than 40 million jobs, equivalent to more than 82% of the country’s labor force.
The potential of this dynamic economic sector is not yet commensurate with its development capacity and the support of all sectors, including the banking industry, the information technology industry, the tax and customs management agencies, and other support to promote the private economy, especially SMEs.
However, to develop rapidly and sustainably in both scale and quality, the SME community still faces many difficulties and challenges, especially in accessing capital, improving governance, and digital transformation.
First, more than 42% of businesses face difficulties in accessing credit; having a stable source of capital at a reasonable cost, and accessing capital for businesses is currently very challenging.
Second, in the trend of digital transformation, competitive ability in the digital field is the core capacity that private enterprises and SMEs are facing.
Third, in the context of limited capital and a strong desire to develop business, financial management capacity and mechanisms for managing spending and cash flow after business are not optimized.
Although there are many challenges, the current economy also offers many opportunities for SMEs with the support of the State in promoting the development of the private sector, new tax policies in the domestic market, or value-added tax refund policies. On March 25, 2025, the Prime Minister also issued Directive No. 10/CT-TTg on promoting the development of SMEs. Accordingly, by 2030, there will be at least 1 million new enterprises, while promoting supportive infrastructure, improving access to finance, credit, and human resources for SMEs.
The current picture of SMEs
![]() Speakers shared at the event
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Mr. Gareth Parrington – Senior Director of Visa assessed that Vietnam is undergoing a significant transformation in its payment ecosystem, with an increasing number of digital transactions. Key developments include the rise of contactless payments. By the end of 2020, more than 75% of face-to-face transactions on Visa cards in Vietnam were contactless, and e-wallets were widely used by over 80% of consumers. This reflects users’ preference for cashless payment methods.
In addition, it is worth mentioning the government’s policy of promoting digitization. The government is implementing a policy to encourage cashless payments and financial inclusion, aiming for 80% of the population aged 15 and over to have a bank account by 2025.
Economic trends that will affect SMEs this year. First, outstanding economic growth, with GDP expected to grow by 6.5% in 2025, driven by strong domestic demand and increased foreign direct investment. E-commerce is predicted to reach 32 billion USD by 2025, benefiting SMEs through online channels. This trend will also affect SMEs this year.
Second, improvements in payment technology. The adoption of real-time payments (API open banking) and the development of embedded payments in platforms such as accounting and billing systems benefit SMEs in transaction management.
Third, focusing on financial inclusion, such as pilot programs for unbanked population groups, and access to digital services also expands the potential customer base for SMEs. Card payments are also being introduced with security for businesses.
Common challenges when businesses approach financial solutions
According to a nationwide survey by Visa of 600 micro, small, and medium-sized enterprises aged 26-55. The results show the main challenges facing SMEs. First is the limitation in accessing finance, creating a barrier to growth. Finance is the second biggest challenge after business operations. Time-consuming processes and procedures create bottlenecks in payment and credit procedures.
In addition, there are also challenges in payments, such as the lack of separation between personal and business expenses. While most SMEs use cards as a means of payment, they lack the tools to manage and separate them. The card usage rate will increase if SMEs are offered programs with better credit terms, foreign exchange support, and cost management tools.
Most micro, small, and medium-sized enterprises still rely on credit to develop but face barriers due to complicated procedures and documentation, although digital platforms for credit extension have emerged, most still follow traditional methods.
The rate of adoption of digital payment acceptance is high. More than 40% of SMEs accept card payments from customers, and more than two-thirds of businesses recognize the positive impact of digital payments, such as increased revenue, simpler management, and higher security. Therefore, SMEs also want simple, safe, and secure payment acceptance solutions.
Mr. Ho Van Long shared that, understanding the pivotal role of SMEs in the Vietnamese economy and the challenges in accessing and managing finances, VIB has also designed a comprehensive financial solution to accompany and bring optimal benefits to the SME community. The solution offers three products that meet the needs of capital, cost management, and payment for businesses: VIB Business Card credit card, VIB Business Loan supplemental working capital loan package, and VIB Business digital banking.
With the demand for working capital loans from businesses, the maximum loan limit is up to VND 150 billion, competitive interest rate from 6.7%/year, loan ratio up to 90% of the value of collateral. Timely and abundant capital sources help businesses take the initiative in production and business activities and seize opportunities to expand the market.
– 15:45 05/08/2025
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