In the first half of the year, nearly VND 1 quadrillion was injected into the economy; in June alone, loans amounted to VND 270 trillion. However, many enterprises, especially small and medium-sized enterprises (SMEs), and micro-enterprises, are still unable to access this capital.
Mr. Nguyen Danh Thuan, Chairman and CEO of Ademax JSC, attributed this to policies primarily focusing on large projects, and banks offering credit packages with relatively high requirements. Meanwhile, the capacity of small businesses to manage and produce transparent reports to access capital remains challenging.
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He further elaborated that “Access to capital is quite difficult, and those with sufficient knowledge and information from the banks struggle to reach small and medium-sized enterprises. This is due to a lack of information and policies. Even when there are favorable packages, businesses cannot access them.”
Experts attribute the core issue to the intrinsic nature of small businesses, which often fall short in meeting basic requirements such as transparency, effective business strategies, and establishing credibility.
Mr. Nguyen Kim Hung, Vice Chairman of the Association of Small and Medium Enterprises in Vietnam, asserted, “Small and medium-sized enterprises have historically struggled to meet bank credit requirements and mostly rely on loans collateralized by their assets. Therefore, increased credit injections primarily benefit larger businesses. Hence, we must clarify that credit growth is intended for small and medium enterprises to reflect the actual situation accurately.”
With his extensive experience in monitoring the banking sector, economist Dr. Nguyen Tri Hieu shared that banks with abundant funds would be inclined to lend but only when the market’s risk appetite is deemed acceptable. These are the very concerns that influence banks’ lending decisions.
“If the economy and the markets they serve are perceived as high-risk, banks will be reluctant to lend. Consequently, while banks have the funds, they are cautious about lending due to risk concerns. This leads to a phenomenon in the banking industry termed ‘capital glut,’ where banks have excess capital but cannot lend it out,” he explained.
Mr. Le Duy Binh, an economic expert, attributed the mismatch between customers and banks to the lending standards prevalent in the banking industry.
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“All banks must now meet the Basel II and III standards, which encompass not only capital adequacy and minimum capital requirements but also credit quality and lending criteria. While it is not challenging for SMEs to obtain loans from banks, the borrowing process must adhere to stringent legal regulations, especially when lending to businesses. Otherwise, banks will also be held accountable,” he stated.
Economist Prof. Dr. Dinh Trong Thinh emphasized that lending conditions and requirements are mandatory under the law for banks’ credit activities to ensure financial and monetary security for individual banks and the entire banking system in the national economy. Therefore, we must implement these conditions optimally.
“We expect banks to proactively lend based on cash flow and production and business plans to meet the capital needs of the national economy. However, this also requires businesses to prepare comprehensive documentation, including production and business contracts, to facilitate optimal investment decisions and align borrowing plans accordingly,” he suggested.
Additionally, experts pointed out that Vietnam’s financial market severely lacks banking products and financial services tailored for micro, small, and medium-sized enterprises. Moreover, the prevailing lending culture in Vietnam heavily relies on real estate collateral rather than movable assets such as accounts receivable, inventory, ownership papers, and commercial papers.
This highlights the need for more flexible loan packages from banks, ultimately offering financial products that better meet the requirements of SMEs.
