SMEs’ access to credit: Better, but not enoughSmall- and medium-sized enterprises (SMEs) have been highly conducive to economic development in Vietnam as they significantly contribute to job creation, export promotion, growth generation and poverty reduction. Therefore, one of the most important measures to support SMEs is to improve their access to credit. In an economy like Vietnam whose financial system relies heavily on banks, access to credit is even more critical. In addition to this, credit ratings and guarantee frameworks are also significant for access to credit by SMEs. The above issues imply that a much broader approach is needed to make credit accessible to SMEs rather than relying only on World Bank’s Access to Credit Index, though that indicator is intrinsic and meaningful.

Source: VietNamNet News May 02, 2018 09:11 UTC