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VOL. 11, ISSUE 5 (2025)
Factors affecting commercial banks' lending decisions for small and medium enterprises in Viet Nam
Authors
Bui Vinh Thanh, Lam Thai Bao Ngoc
Abstract
SMEs are important players in the growth of
all economies, it plays an important role in business activities, job creation
and social stability. In Vietnam, SMEs occupy an extremely important position
in the national economy, but the rate of SMEs accessing bank credit is
relatively low, only about 25%. This study was conducted to identify and
measure the factors affecting the lending decisions of joint stock commercial
banks to SMEs, thereby making recommendations to improve access to bank capital
for SMEs. With the data set collected from 284 bank officers in Tien Giang
province, through structural equation modeling (SEM), we identified 07 factors
that affect the decision to lend capital to small and medium enterprises,
including: financial assets, loan options, loan term, business reliability,
business operation time, initial impression of loan appraisal staff and loan
options. Based on these results, we have made 7 recommendations for small and
medium enterprises to be able to access bank loans.
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Pages:81-87
How to cite this article:
Bui Vinh Thanh, Lam Thai Bao Ngoc "Factors affecting commercial banks' lending decisions for small and medium enterprises in Viet Nam". International Journal of Commerce and Management Research, Vol 11, Issue 5, 2025, Pages 81-87
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