Improving Access to Bank Loans for Small and Medium-sized Enterprises in Mekong River Delta, Vietnam

Abstract

Despite Small and Medium-sized Enterprises play an important role in economic growth of Vietnam, there remain still many difficulties for them to access credit. This study contributes to takle these problems with investigating the factors that affect the ability to borrow money of SMEs in Mekong Delta, Vietnam. Data collected from a survey on 480 SMEs in the area are analyzed using Binary Logistic regression model. The results suggest that groups of factors affecting loan financing to those SMEs include Characteristics of business owners, Enterprise characteristics, and Business environment characteristics. The significance of the study provides evidence to the policy makers and practistioners to improve the accessibility to loans of the SMEs in Vietnam.