INTRODUCTION
Thesis’s rationale
Credit activity is essential for the revenue and profit generation of commercial banks (NHTM), influencing their existence and growth However, various subjective and objective factors introduce potential risks that can impact not only the banks' business results but also the overall economic stability Consequently, improving credit quality, risk management, and efficiency is a priority for both banking leaders and economic managers Despite the finance and banking sector implementing numerous solutions to enhance monetary policy, the credit and loan outstanding balance for small and medium-sized enterprises (SMEs) remains stagnant at 25% of the total loan outstanding balance in the economy SMEs face significant challenges in accessing capital from credit institutions, with many struggling to secure funding Vietinbank Thanh Hoa has been recognized for its long-standing history and success in providing financial support to corporate clients, particularly SMEs However, the branch's credit activity has seen stable growth without significant breakthroughs, as many enterprises continue to face difficulties, leading to a rise in bankruptcies This situation raises critical questions for banking leaders on how to facilitate better access to credit for SMEs, thereby enhancing economic outcomes and contributing to the overall performance of the banking sector while mitigating risks.
Research objectives
Based on the analysis of the current state of SME credit activities at Vietinbank Thanh Hoa and the various factors influencing banking credit, this article proposes several solutions aimed at enhancing the efficiency of credit access for the branch in the future.
- Systematizing scientific bases in small and medium-sized enterprises, credit and credit efficiency, listing previous related research works
- Analyzing, assessing the reality of SME credit activity at Vietinbank Thanh Hoa;
- Researching some factors affecting the access of SME credit at Vietinbank Thanh Hoa
- Proposing some solutions to improve SME credit efficiency so as to be safe in business activities of Vietinbank Thanh Hoa;
- Research objects : Customers make transactions at the branch and the efficiency of credit access at Vietinbank Thanh Hoa
+ Space: SME credit activity at Vietinbank Thanh Hoa
Primary data: Making survey of customers from June 2015
Secondary data: Synthetizing reports on credit activity of Vietinbank Thanh Hoa for the period of 2012-2014.
Research methods
- Secondary data is collected from annual assessment reports on credit activity of Vietinbank Thanh Hoa for the period of 2012-2015
Primary data is gathered through direct interviews and surveys sent to SME customers who have taken out loans at the branch The selection of customers for the surveys is done randomly, utilizing the bank's customer data.
Based on collected data, the author uses the following methods to synthetize and analyze data:
- Descriptive Statistics method: on the basis of secondary and primary data, this method is used to describe data upon specific criteria over the time;
- Comparison method: comparing norms upon time, space;
- Quantitative analysis method is used to analyze factors affecting the credit quality at Vietinbank Thanh Hoa
Data processing and calculations for research are conducted using Excel and SPSS software The author employs descriptive statistics in Excel and performs logistic binary regression analysis with SPSS to evaluate the credit access capabilities of small and medium-sized enterprises in Thanh Hoa province.
Structure of the thesis
In addition to Query and Conclusion, research content of the thesis is structured by 3 following chapters:
Chapter 2: Theoretical basis and research works
Chapter 4: Research results and discussions
Chương 5: Conclusions and administration implication
THEOR ETICAL BACKGROUND
Small and medium-sized enterprises
Under the Law on Enterprises 2015, an enterprise is defined as an economic organization that possesses a private name, property, a stable transaction office, and business registration, all aimed at conducting business activities The law further clarifies that business encompasses the continuous execution of various stages of the investment process, ranging from production to product consumption or service delivery Therefore, an enterprise is fundamentally a self-interested economic organization, although some may not operate solely for profit.
In order to exactly determine this type of enterprise, two criteria are based: qualitative target group and quantitative target group
Qualitative target group includes specialization, management clue number
Small and medium-sized enterprises (SMEs) often exhibit lower levels of specialization and fewer management resources compared to large corporations Typically, these businesses are initiated by a single leader who may juggle multiple roles within the organization While the qualitative target group accurately represents the essence and current state of these enterprises, it remains challenging to define, making it primarily a reference point that is seldom applied in practice (Lê Minh Toàn, 2011).
The quantitative target group encompasses key metrics such as the planned number of employees, property value, business capital, revenue, and profit These metrics are not uniformly applied across different countries regarding labor, capital, and revenue The assessment can vary based on the number of employees, capital, revenue, or a combination of employees and business capital (Lê Minh Toàn, 2011).
In Vietnam, the incentive for enterprise development, especially the support to non-state owned enterprises is considered by the State
The Government has issued Decree No 59/2009/ND-CP to support small and medium-sized enterprises (SMEs), defining them as business establishments registered in accordance with the law SMEs are categorized into three levels: micro, small, and medium, based on total capital resources—equivalent to total assets on the balance sheet—or the average number of annual employees, with total capital resources being the preferred criterion for classification.
[Table 2-1] Criteria for assessing enterprise size under Decree
Small-sized enterprise Medium-sized enterprise
10 - 50 persons từ trên 10 - VND50 billion
2.1.2 Factors affecting activities of enterprises
In order to find out factors related to enterprises , first of all, business environment should be determined According to the proposal by Robbins& ctg
In 2003, the business environment is categorized into distinct layers: the internal environment and the external environment, which further includes the micro environment (operational environment) and the macro environment (general environment) This framework highlights that subjects represent the subjective influences of individuals, such as laws and regulations, while force factors denote the strengths of a more objective nature, including economic, social, and natural influences.
Enterprises may only monitor, detect to change their decisions to minimize bad impacts and exploit good impacts at most to adapt in the most favourable way to the environment
Trần Minh Đạo (2006) highlights the necessity of integrating the marketing environment with the overall business environment of enterprises However, this perspective may lack persuasiveness, as not all startups have a dedicated marketing division.
Understanding marketing opinions is crucial for large enterprises and those in the startup phase, while knowledge of the environment is more relevant for small and medium-sized enterprises The environment encompasses all forces and institutions that influence the operations and outcomes of businesses (Robbins, Coulter, Bergman, & Stagg, 2003).
The internal environment of a company is shaped by shared meanings and beliefs, influencing employee actions (Robbins et al., 2003) Founders play a crucial role in establishing corporate culture by defining the enterprise's image from the outset This corporate image is vital for enhancing competitiveness in both domestic and international markets A strong, positive image fosters trust among partners, significantly impacting the company's business performance.
In today's business landscape, companies utilize various communication tools, such as emails for remote marketing and detailed websites, to engage with potential partners These communication instruments not only facilitate connections but also reflect the company's character and enhance its corporate image.
Cultural factors are integral to the development of enterprises, encompassing the values, beliefs, and standards that are reflected in the actions and behaviors of each member within the organization.
The relationship between organizational culture and the perspectives of founders is closely intertwined Entrepreneurs' views are often influenced by various factors, including their social status, education level, age, leadership style, and personality traits.
The operational environment encompasses the factors that directly impact the decisions and actions of administrators, particularly in small and medium-sized start-up enterprises These elements significantly influence the ability of businesses to achieve their targets (Robbin et al., 2003).
According to Tran Minh Dao (2006), external forces under the operational environment of enterprises include supply organizations, service support intermediaries, competitors and customers
Business owners must secure essential input factors for their operations, including raw materials, fuel, spare parts, semi-finished products, machinery, and equipment for production and management Additionally, newly established enterprises need to recruit labor and acquire land to facilitate their activities.
Market input factor changes significantly influence business owner behavior Suppliers face risks and threats that impact decision-making, affecting the quality of relationships between companies and customers, as well as overall enterprise performance.
Competitors of businesses, especially startups, include individuals and organizations offering similar products and services, targeting the same customer base.
Basic issues of credit
Credit, derived from the Latin term "Creditium," signifies belief and trust, which translates to a borrowing relationship in Vietnamese It involves the temporary transfer of the right to utilize a value, whether in-kind or cash, from the owner to the user, with the expectation of repayment that exceeds the original value.
Lending is a type of credit where a lender provides a specified amount of money to a borrower for a particular purpose, under an agreement that includes the repayment of both the principal and interest within a set timeframe.
Credit involves the transfer of assets, such as money or goods, from lenders, including banks and financial institutions, to borrowers, which can be individuals or enterprises This transaction is governed by an agreement where borrowers commit to repay the principal and interest to lenders at a specified maturity date Banking credit specifically refers to arrangements that allow organizations or individuals to utilize funds through various methods, including loans, discounts, financial leasing, factoring, and bank guarantees, with the obligation to repay the borrowed amounts.
So, banking credit is the transfer of the right to use capital from banks to customers in a certain period with a certain expenditure by banking operations
Banking credit has 5 characteristics of general credit as follows (Nguyễn Văn
Banking credit fundamentally relies on trust, as banks are willing to extend credit only when they are confident that borrowers will utilize loan funds appropriately and possess the ability to repay both principal and interest punctually This mutual trust is crucial, as borrowers must also believe in their future earning potential to meet repayment obligations Consequently, banks prioritize specific criteria when making lending decisions.
- Credit (prestige, good faith) of borrowers
- Feasibility of a project (business project)
Credit involves the transfer of property with specific repayment terms Banks act as financial intermediaries by borrowing and lending, which necessitates defined terms for all banking credits to ensure the return of mobilized capital To establish appropriate lending terms, banks consider the nature and duration of their capital resources, as well as the turnover of borrowers' capital When banks possess stable long-term capital resources, they can offer more long-term credits Conversely, granting numerous long-term credits with unstable and short-term capital resources can lead to liquidity risks.
Loan terms should align with borrowers' capital turnover to ensure timely debt repayment If a bank sets loan terms that are shorter than the borrowers' capital turnover, customers may struggle to meet their repayment obligations Conversely, if loan terms exceed the capital turnover, it may lead to misuse of funds by borrowers, increasing potential credit risks for banks.
The repayment of a loan signifies the conclusion of a credit cycle, where borrowed capital, after completing its production and business cycle, is returned to its original currency form and subsequently repaid to lenders by borrowers.
Credit involves the obligation to repay both the principal and the interest Failure to make repayments disqualifies the transaction from being considered credit The repayment amount must exceed the original loan value, meaning customers are required to pay interest in addition to the principal This interest serves as the cost for utilizing the loan and is essential for covering operational expenses and generating profit, highlighting the fundamental nature of banking operations.
Interest must offset operating costs and make a profit, reflecting the quality business operations of banks
Credit operations pose significant risks for banks due to the challenges in accurately assessing loan applications The presence of asymmetric information leads to adverse selection and moral hazard Furthermore, credit recovery is influenced not only by the borrowers but also by external factors beyond their control, such as fluctuations in prices, interest rates, exchange rates, inflation, and natural disasters When borrowers face difficulties stemming from changes in the business environment, their ability to repay debts diminishes, thereby increasing the credit risks for banks.
Fifthly, credit must be based on a commitment to refund unconditionally
The loan application and lending process is governed by strict legal frameworks, including credit contracts, debt receipts, mortgage contracts, and guarantee contracts Borrowers and any guarantors are required to unconditionally repay the loans to banks upon maturity.
Credit plays a crucial role in ensuring the continuous and stable operation of production and business activities Since direct exchanges between goods and money are not feasible, capital is essential to sustain the production process Banking credit facilitates this need, allowing production to persist, stabilize, and thrive.
Credit is essential for driving socio-economic development, as it plays a crucial role in all economic and social activities To enhance capital turnover in production and business, entities must actively pursue various strategies, including the adoption of scientific and technological advancements This endeavor necessitates substantial capital investment, making banking credit a vital component where competition thrives and the economy experiences significant growth.
Credit serves as a macroeconomic regulation tool for the State, enabling it to adjust the economy across various regions, industries, and sectors By utilizing state banking credit, the government can harness the full potential of specific industries, fostering robust economic development in targeted areas to ensure they achieve comparable conditions to other regions.
Credit facilitates the development of external economies by enabling banks to open accounts in various countries This fosters favorable and trustworthy business relationships, allowing partners to feel secure in their collaborations.
When discussing banking credit, it is essential to view banks as lenders As credit grantors, banking credit can be categorized into several classifications.
Access to credit
Access to credit is influenced by an individual's or household's desire to maximize borrowing expectations, with each currency unit carrying an opportunity cost represented by the interest rate However, Stiglitz and Weiss (1981) contend that traditional interest-based supply-demand theories fail to fully explain borrowers' access to capital, as lending decisions are more reliant on the lender's assessment of the borrower's information rather than market interest rates Le Van Trinh (2010) defines access to credit as the likelihood of a household obtaining a loan or the amount of credit available to them.
Asymmetry theory in credit operations
A credit contract is considered an incomplete contract, as it requires the parties involved to fulfill their obligations for full implementation Unlike complete contracts, the execution of incomplete contracts poses challenges due to the numerous unforeseen circumstances that may arise during the implementation process.
Asymmetric information in economic activities leads to two primary issues: adverse selection and moral hazard Adverse selection occurs when a more informed party takes advantage of the less informed party before a contract is signed, while moral hazard arises when the informed party acts in a way that harms the less informed party after the contract is in place In the context of credit activities, banks often lack sufficient information about the projects and intended use of funds by clients To mitigate risks associated with asymmetric information, credit institutions must implement strategies to limit adverse selection and moral hazard, ensuring they lend to suitable borrowers and closely monitor their actions to safeguard the recovery of both principal and interest on loans.
In the credit market, asymmetric information leads to significant challenges such as backward selection, moral hazard, costly endorsement, and enforceable contractual obligations Stiglitz and Weiss (1981) highlighted that backward selection occurs when lenders lack complete knowledge of borrowers' characteristics, allowing unreliable borrowers to appear trustworthy This inability to distinguish between reliable and risky borrowers can result in market failure and hinder the distribution of credit information To mitigate this, lenders often require collateral, which unfortunately excludes borrowers in poorer, developing countries who lack sufficient assets The issue is compounded by moral hazard, where lenders face high costs in monitoring borrowers' actions and ensuring loans are used appropriately Consequently, collateral is again used as a solution to reduce moral hazard risks Additionally, costly endorsement and ineffective implementation exacerbate these problems, as lenders struggle to evaluate the success of borrowers' projects in less effective information environments While many asymmetric information models focus on lenders' constraints, borrowers also face challenges in identifying credit sources, often incurring high search costs that can prevent them from accessing necessary funds.
Overview of research projects
In the research conducted by Hongjiang Zhao, Wenxu Wu, and Xuehua Chen (2006), various factors influencing the borrowing capacity of small and medium-sized enterprises (SMEs) from banks were examined, focusing on data from Thanh Do city in Tu Xuyen province, China The study revealed that while SMEs can offer collateral or guarantees, critical factors such as enterprise size, willingness to accept bank terms, and the strength of relationships with banks significantly impact borrowing ability Correlation and regression analyses indicated that financial variables like income, net profit, liability ratio, and credit score do not clearly affect loan acquisition Consistent with theoretical predictions, enterprise size emerged as the most crucial determinant of SMEs' borrowing capacity, highlighting the information asymmetry between SMEs and banks.
In Phuong Nu Minh Le's 2012 research, corporate data from the World Bank in 1999 was utilized to examine the factors influencing SME financing The findings revealed that larger SMEs in Vietnam have a higher proportion of bank debts compared to smaller enterprises, contradicting the conclusions drawn by Taussig (2008) and Allen et al (2005, 2007).
Vietnamese enterprises have a more favorable access to capital compared to Indian enterprises The advantages of capital assets, internal funds, retained profits, and owner’s equity contribute to this accessibility A high loan-to-capital ratio can diminish capital assets relative to working capital In the manufacturing sector, the ability to raise capital through equity or new equity share issuance is significantly higher than in other industries Small businesses prioritize their potential assets, selecting land, buildings, personal properties, and machinery based on their importance as collateral.
In the reseach of Joseph Kofi Nkuah, John Paul Tanyeh and Kala Gaeten
Access to credit is crucial for the growth and survival of small- and medium-sized enterprises (SMEs) Policymakers are focused on implementing financial sector policies that encourage financial intermediaries to provide more credit to SMEs Despite these efforts, small businesses, particularly in developed economies, still face significant challenges in accessing credit, making it a prominent topic of discussion in both the business community and government circles.
A survey by the Association of Ghana Industries in 2011 revealed that inadequate access to credit is a major barrier to the growth of small enterprises in Ghana The development of SMEs is heavily reliant on their ability to invest in restructuring and innovation, which necessitates capital and access to finance Consequently, SMEs frequently express concerns about their financial access, posing a threat to the country's economic growth This research aims to investigate the challenges and factors influencing access to bank credit for SMEs in the Wa municipality, employing quantitative methods and stratified random sampling to analyze data from eighty businessmen in Wa Town The findings indicate a significant positive relationship between specific company attributes and access to credit, highlighting that financial activities such as business registration, documentation, and asset ownership significantly impact SMEs' ability to secure financing.
A study by Nhung Nguyen, Christopher Gan, and Baiding Hu (2015) examines the factors influencing credit accessibility and interest rates for SMEs in Vietnam in 2012 Key findings indicate that owner characteristics, including educational level and gender, significantly affect credit access, with small enterprises facing greater challenges While owner characteristics do not significantly impact loan interest rates, private money lenders charge the highest rates, followed by commercial banks and microfinance Longer operational periods, government support, and long-term loans contribute to lower interest rates, whereas larger loan amounts and new investment projects lead to higher rates, particularly for SMEs in manufacturing or construction The research highlights the importance of relationships in the SME credit market and the disadvantages faced by small businesses and women in securing loans Consequently, policies aimed at enhancing credit access for small enterprises should focus on these borrower groups, alongside the need for a stable monetary policy that prioritizes market-driven factors over non-market influences.
In their 2016 research, Hezron Mogaka Osano and Hilario Languitone highlight the crucial role of SMEs in Mozambique's economic development, emphasizing that access to finance is vital for their growth The study aimed to identify factors influencing SMEs' access to finance, focusing on the financial sector's structure, awareness of funding opportunities, collateral requirements, and support services Analyzing a sample of 242 SMEs and 324 bank staff, the findings revealed significant relationships between these factors and SMEs' access to finance The results underscore the need for government regulations and funding programs to enhance financial access for SMEs The study concludes that providing small business support services and ensuring the availability of relevant funding information are essential for improving access to finance for SMEs.
RES EARCH METHODS
Research process
In scientific research, various methods are employed to gather data on research subjects, including experimental, interview, survey, and observation methods The collected data is typically processed in quantitative form using statistical techniques, which involve managing disparate numbers, tables, charts, and graphs To verify research findings, repeated experiments are conducted using the initial methods The research process is illustrated in a diagram.
The two main methods used in this thesis are quantitative and qualitative methods Details of the method implementation process are as follows:
Theoretical bases and related researches
Research methodology
The qualitative method aims to provide an overview of the credit situation for SMEs in Thanh Hoa Province at the Vietnam Joint Stock Commercial Bank for Industry and Trade The assessment of SME loan efficiency in this region is based on criteria such as profit, the number of corporate borrowers, credit outstanding balance, bad debt, and the debt remission ratio Additionally, it is crucial to identify the factors influencing SMEs' ability to access loans in Thanh Hoa Province, leading to the design of a research model that illustrates the impact of these factors on credit accessibility for SMEs.
To effectively conduct research, it is essential to analyze data sources, including secondary data from VietinBank Thanh Hoa Branch's profit and loss accounts, credit risk management reports, national magazine articles, and seminar reviews, alongside previous studies for supplementary information Additionally, information collection techniques should be employed, utilizing a discussion outline rather than detailed questionnaires, facilitating direct discussions to clarify information needs with a user-friendly and suggestive design.
The author performed comprehensive interviews with specialists in banking, finance, risk management, credit management, and economics to select an appropriate model and identify the key factors influencing credit access, ranked by priority and significance The detailed interview process is outlined as follows:
Step 01: Outlining contents of survey including in-depth questionnaire, basic contents of in-depth interviews with experts about the importance and the relevance of factors in this study
Step 02: Formulating survey forms, selecting experts and making appointments with experts named in the list before conducting the survey
Step 03: Conducting a survey among experts, recording answers of in-depth interviews and experts’ recommendations
Step 04: Based on judgements and assessments of experts, determining the suitability and level of priority of factors, making comparison with preliminary results of investigation among enterprises to form official factors of investigation
Quantitative research primarily aims to validate theories through positivism and natural science models, as highlighted by Vu Cao Dam (2012) To perform regression analysis using quantitative methods, the initial step involves data collection.
The study employs a survey method utilizing questionnaires for data collection, which is both cost-effective and time-efficient However, this approach often results in low response rates and potential inaccuracies due to deliberate misstatements by participants To address these challenges, direct interviews are chosen as the next data collection method, as they yield higher response rates This method allows surveyors to use material stimuli for more effective interviews and provides the opportunity to clarify any ambiguous or complex questions.
The questionnaire is designed to gather personal information about enterprise owners, including their gender, age, and qualifications It also examines corporate profile factors such as business experience, operating period, number of staff, business form, loan terms, and purposes Additionally, it addresses sources of financing, including bank loans, loans from friends, and mortgaged assets, while evaluating credit policies and customer satisfaction.
Collection period: from September 15, 2016 to November 20, 2016
Data processing method: All data is analyzed under the binary logistic model by SPSS 22 software
Sampling method in this research is non-probability sampling, because of time and budget constraints The total number of samples observed in the subject is
A total of 300 questionnaires were distributed to households across 19 wards and communes in Quy City, Binh Dinh Province The sample size was conveniently selected from a household list, ultimately reaching 210 completed responses The distribution and collection of these questionnaires took place from June 1, 2016, to January 9, 2016.
Data collection is a crucial phase in studying socio-economic phenomena, but it can be time-consuming and costly Understanding various data collection methods is essential for developing an effective scientific data collection plan to maximize efficiency Utilizing a list of 300 SMEs in Thanh Hoa province and insights from experts in economics, public management, and policymaking, the author has gathered valuable data.
Step 1: After setting up the framework for research and analysis of SME credit operations in Thanh Hoa province at VietinBank Thanh Hoa Branch, the author used Microsoft Word 2010 software to design and print questionnaires
Step 2: Through the administration and personnel department, the author sent questionnaires to business owners by means of direct or indirect interviews with business owners and at the same time clearly explained how to answer questions in the questionnaire with attached documents stating the contents and survey purposes, as well as explaining how to answer in the interview
Step 3: Taking back questionnaires answered and checking answers of households In case it is not clear about the meaning of answers, the author will meet respondents to obtain their comments.
Proposed research model
This study examines the factors influencing credit access for small and medium-sized enterprises (SMEs) in Thanh Hoa province at Vietinbank, utilizing both domestic and international credit access models, including those by Phuong Nu Minh Le (2012) and Nhung Nguyen et al (2015) The research primarily employs the model by Nhung Nguyen, Christopher Gan, and Baiding Hu (2015) to guide its main research directions A logistic model is used to analyze the factors affecting SMEs' ability to secure credit from various sources, such as commercial banks and microfinance Given the binary nature of the dependent variable—loans versus non-borrowings—logistic estimates are deemed appropriate for this study The model is estimated using the maximum likelihood estimation method in STATA software, highlighting the simplicity and effectiveness of the logistic approach for binary dependent variables.
The Borrowit model incorporates various factors such as gender, age, education level, ownership experience, firm age, size, and sector classifications Additionally, it considers export status, payment duration, loan purpose, loan size, and network influences from commercial banks, social banks, friends, and customers Other critical elements include asset value, interest rates, and credit policies, all contributing to a comprehensive understanding of borrowing dynamics.
Data processing method
The research will utilize logistic linear regression, employing total least squares methods to construct the regression model To verify the model's reliability, the author will examine potential defects.
The author conducts a descriptive statistical analysis by gathering data and encoding variables, utilizing SPSS 22 software to generate descriptive statistics and additional analyses This analysis provides a summary of the data characteristics, highlighting key factors that influence credit accessibility for SMEs in Thanh Hoa province at VietinBank, including mean values, median values, maximum and minimum values, and standard deviation.
Analysis of Logistic regression model
The research model utilized binary variables, assigning values of 1 or 0, and employed the Logistic model to forecast dependent variables within the range of [0, 1] The Logistic model is represented by a specific equation.
In the model, the independent variable \( P \) ranges from 0 to 1, while \( X \) is another independent variable characterized by regression coefficients \( \beta \) and \( \alpha \) Additionally, \( u \) accounts for confounding factors.
When X → + ∞, then P → 1, and when X → - ∞, then P → 0 Thus, P will be in the range of [0,1] The model estimation method depends on whether the observed value of P is between 0 and 1 or not, or whether it is a binary number with the value being 0 or 1 or not In the event that P is in the range of [0,1], the method is simply changing P and obtaining:
To analyze the relationship between Y and X, it is essential to perform a regression that includes a constant term and allows for the addition of more explanatory variables However, when P is a binary variable, the logarithm of the odds ratio P/(1 - P) becomes unidentifiable at the extremes where P equals 0 or 1 This issue can be addressed by employing a method that estimates appropriate maximum values The marginal effect of X on P is determined by calculating the partial derivative of P with respect to X, leading to the estimation of the marginal impact.
In binary logistic regression, Chi-squared tests are employed to evaluate the null hypothesis \( H_0: p_1 = p_2 = \ldots = p_k = 0 \) The decision to reject or accept \( H_0 \) is based on the significance level indicated by SPSS in the Omnibus Tests of Model Coefficients Table.
Testing the significance of regression coefficients
Binary Logistic Regression requires a hypothesis test for the non-zero regression coefficient, that is the probability of the occurrence or non-occurrence of an event is equal
The Wald Chi Square test is employed to assess the statistical significance of the overall regression coefficient A significance level of P < 0.05 indicates that we can reject the null hypothesis, which posits that all regression coefficients are equal to zero.
The model's appropriateness is evaluated using the -2 Log Likelihood (-2LL) indicator, where a smaller value indicates better suitability The ideal -2LL value is 0, signifying no error and perfect model fit.
The correlation coefficient Nagelkerke R Square shows that the percentage probability of access to credit is explained by variables of the model
The effectiveness of an estimation model can be assessed using a classification table that compares actual and predicted values for each expression, allowing for the evaluation of the overall percentage of correct predictions made by the model.
RES EARCH R ESUL TS
Situation of credit of small and medium-sized enterprises (SMEs) in Joint-Stock Commercial Bank for Industry and Trade, Thanh Hoa branch
4.1.1 Situation of capital mobilization of Joint-Stock Commercial Bank for Industry and Trade, Thanh Hoa branch (Vietinbank Thanh Hoa)
VietinBank's Thanh Hoa Branch recognizes the critical importance of capital growth for expanding its scale and ensuring system security To achieve this, the bank has actively managed interest rates flexibly, diversified term types, and enhanced advertising efforts to boost capital for its members Additionally, it has strengthened partnerships with international financial institutions to secure medium and long-term capital that aligns with the characteristics of core credit institutions in the province The total mobilized capital has shown consistent growth, increasing from VND2,158 billion in 2013 to VND2,859 billion in 2015, although the growth rate has begun to decline On-site capital mobilization constituted over 48%, with resident savings accounting for over 38% and an average growth rate of 17.61% Furthermore, the branch has relied on capital from VietinBank’s operation center, which rose from VND700 billion in 2012 to VND1,094 billion in 2015 Short-term capital mobilization also increased significantly, reaching VND1,579 billion in 2013, up 17.28% from the previous year.
2012, this index increased by 14.13% by 2014, the end of 2015 it increased rapidly to 20.96%, the term of short-term deposits will account for over 71% of the mobilized funds at the branch
[Table 4-1] Situation of capital mobilization in Vietinbank Thanh Hoa branch
Ye ar 2012 Ye ar 2013 Ye ar 2014 Ye ar 2015
Value Proporti on Value Proporti on Value Proporti on Value Proporti on
(Source: Business Development Department of Vietinbank Thanh Hoa branch)
Despite a slight decrease in growth rate, the Thanh Hoa Branch has achieved remarkable results amid a challenging economic landscape and intense competition from both domestic and foreign banks during the 2012-2015 period From 2012 to 2014, the branch maintained stable mobilized capital, supported by timely transfers from the Operation Center to meet credit growth and customer payment demands The branch has actively tapped into local capital sources, particularly from economic organizations, and marketed its services to businesses for opening demand accounts While on-site capital mobilization has shown good growth, the growth rate has declined, particularly due to a significant drop in savings deposits as the bank lowered its mobilizing interest rates below those of competitors, prompting customers to withdraw funds In Thanh Hoa province, over 10 banks operate, with Agribank holding the largest market share at 20%, followed by Vietinbank and Vietcombank at 16%, while the Cooperative Bank, a smaller entity, accounts for only about 2% of the market share.
4.1.2 Situation of outstanding loans to SMEs of the branch
From 2012 to 2015, Vietinbank's Thanh Hoa Branch effectively provided loans to individuals and enterprises in Thanh Hoa province, addressing their capital needs for production, business, and consumption, particularly for SMEs The number and quality of SMEs in the region have been rapidly increasing; however, these enterprises face significant challenges, including access to credit, business strategies, human resources, technology, and product outputs Despite these difficulties, Vietinbank Thanh Hoa Branch has focused on enhancing service quality, management, and credit policies to support businesses amid economic challenges As a result, the total outstanding loans to enterprises have steadily increased, with notable growth from 1,589 borrowing enterprises in 2012 to 1,688 by the end of 2015 The branch's total outstanding loans rose from VND 459 billion in 2013 to VND 551 billion in 2015, reflecting a consistent upward trend in both loan value and growth, marking a positive outcome for the branch.
[Table 4-2] Outstanding loans of SMEs of Vietinbank Thanh Hoa branch
Items Year 2012 Year 2013 Year 2014 Year 2015
(Source: Business Development Department of Vietinbank Thanh Hoa branch)
The VietinBank branch has effectively implemented flexible credit expansion measures while adhering to safety and efficiency standards, focusing on lending to small and medium enterprises (SMEs) and production households The branch has intensified marketing efforts to broaden its operational reach and borrower selection, resulting in significant growth and quality in credit activities over the past year Short-term loans increased from VND259 billion to VND345 billion, reflecting a growth rate of 10.03%, while medium-term loans rose from VND91 billion to VND131 billion, with a 13.02% annual growth rate Long-term loans remained stable, comprising 16.29% of the portfolio Key products for SMEs include loans for business expansion, equipment investment, and import-export support, featuring preferential policies such as reduced interest rates for the initial six months Despite the branch's strong performance, Agirbank holds the highest market share in the area.
As of now, the market share is led by Vietinbank at 23.2%, followed by Vietcombank at 18.2% and other private joint-stock commercial banks at 12.52% The effective implementation of Government Decree No 41/CP has positioned construction and commercial services as primary offerings, leading to stable lending in the construction sector and confirming the bank's focus on production-oriented business strategies The majority of loans, over 95%, are denominated in VND, with foreign currency loans primarily used for payment purposes At the Vietinbank Thanh Hoa Branch, most loans are secured to enhance system security and manage banking risks However, the quality of collateral remains a concern, as some enterprises engage in fraudulent practices to secure loans beyond their limits, resulting in repayment difficulties.
4.1.3 Situation of overdue debts and bad debts in lending to SMEs
The rise in loans at Vietinbank Thanh Hoa inevitably leads to an increase in non-performing loans In 2013, non-performing loans reached VND10.9 billion, marking a 15.5% increase from 2012 and accounting for 0.79% of total outstanding loans By 2014, this figure is projected to rise to VND11.5 billion, representing 0.71% of total outstanding loans, with a growth of 15.17% compared to the previous year.
In 2015, bad debts surged to VND 17 billion, representing 0.87% of total outstanding loans, marking a 10.4% increase Despite this rise, non-performing loans generally comply with Basel II standards and the State Bank's Circular 02 Notably, the bad debt for small and medium enterprises rose from VND 4.76 billion.
VND7.42 billion, this rate tends to decrease in 2013, 2014, and increase sharply in
In 2015, Vietinbank Thanh Hoa faced significant bad debts primarily from small and medium enterprises, predominantly consisting of medium and short-term loans These debts were often secured by collateral assets and were notably concentrated in the construction and trading services sectors.
[Table 4-3] Situation of bad debts in lending to SMEs of Vietinbank Thanh Hoa
Amount Proportion Amoun t Proportion Amount Proportion Amount Proportion Total outstandi ng loans 1,329 1,536 1,769 1,954
Bad de bts of e nte rprises 6.3 0.47 6.27 0.41 5.89 0.33 9.49 0.49
Bad de bts of SMEs 4.76 0.28 4.5 0.29 4.33 0.24 7.42 0.38
As pe r lending te rm
Wit h collat eral 4.58 96.2 4.29 95.2 4.05 93.5 7.1 95.7 Without Collat eral 0.18 3.8 0.22 4.8 0.28 6.5 0.32 4.3
Const ruct ion industry 2.25 47.2 2.06 45.7 2.11 48.8 3.77 50.8 Trading and services 1.84 38.6 1.81 40.2 1.71 39.5 2.83 38.1
(Source: Business report of Vietinbank Thanh Hoa branch)
The Vietinbank Thanh Hoa branch reported a significantly low annual overdue debt ratio, well below the average for both the banking system in Vietnam and Vietinbank itself The rise in bad debts can be attributed to challenging macroeconomic conditions, including high inflation and market instability, as well as fierce competition and ineffective product support policies However, the primary factor stems from the loan portfolio of SMEs, which is influenced by the business owners' qualifications, the quality of human resources, technology, product quality, marketing communication, legal status, and business plans Many businesses have reduced their production activities, and inadequate evaluations by valuators have led to bankruptcies, resulting in an inability to repay debts and an increase in bad debts.
4.1.4 Situation of credit effectiveness to SMEs
In recent years, the branch has experienced fluctuating business results Specifically, in 2013, the branch's income fell by 6.5%, with a notable 7.7% decrease in income from credit activities However, in 2014, the branch rebounded with an 11% increase in overall income and a 12% rise in credit income, despite a significant 73% drop in service income.
In 2013, branch expenses decreased significantly by 23.5% compared to the previous year, primarily due to reduced deposit interest and lower administrative costs, resulting in a 61% increase in profit before tax However, in 2014, the growth rate of costs outpaced income growth, leading to a slight decline in profit to VND 44 billion, a decrease of 2% from the prior year.
[Table 4-4] Business results of Vietinbank Thanh Hoa branch in the 2012-
Rate of outstanding loans/mobilized capital 70.35% 71.18% 68.49% 68.35%
Rate of credit income from SMEs 71.78% 81.87% 79.92% 81.40% Ratio of credit profit from SMEs 8.77% 8.96% 7.83% 7.97%
(Source: Business Development Department of Vietinbank Thanh Hoa branch)
In 2014, the branch faced challenges with low input-output disparity, yet it effectively utilized income, cost savings, and flexible management throughout various stages of revenue generation, including early-year credit growth and increased service revenue As a result, the branch successfully met the financial targets set by the Central level, achieving a total revenue of VND 185 billion, total expenditures of VND 141 billion, and a net difference of VND 56 billion, thereby fulfilling 100% of the plan.
The recent improvements in the Branch's operational mechanisms and business model have led to a significant increase in capital demand, particularly for credit funds during peak seasons To address this growing and diverse demand while minimizing capital imbalances, the Fund is actively seeking partnerships with international financial institutions and focusing on local potential This includes implementing internal capital regulations, flexible interest rate mechanisms, and attracting deposits from residents and businesses, as well as participating in the interbank and open markets As a result, the loan interest rate has risen by 1.15% since 2012, with the system's rate at 0.9% Although this increase has influenced borrower psychology, the dedicated support from credit officers has ensured customer satisfaction, leading to a rise in the number of clients rather than a decline.
4.1.5 Assessment of situation of credit to SMEs in VietinBank- Thanh Hoa branch
Firstly, it can be seen that the quality of debt and credit structure are changing positively
The bad debt of Group 2 was effectively managed, remaining within the 2% limit, while the total annual outstanding debt increased by an average of 17% This indicates the successful implementation of the Bank's credit risk management strategies over the previous period VietinBank - Thanh Hoa Branch has adjusted its credit structure to maintain the proportion of industrial and commercial loans between 55% and 60%, as initially intended Additionally, there has been a deliberate reduction in loans to State-owned enterprises (SOEs), with a shift towards more active lending to individual customers and a gradual increase in secured loans The bank is also rigorously controlling loan balances in high-risk sectors such as real estate and securities.
The Vietinbank - Thanh Hoa Branch has established a synchronized credit policy and mechanism that aligns with positive changes, adhering to ISO 9001:2000 standards Credit procedures are standardized through comprehensive guidelines, including a credit manual and the INCAS loan management system To adapt to the evolving economic and legal landscape, the branch implements timely guiding documents and credit warnings Centralized management is maintained through structured policies and processes, while decentralization allows for individual and unit involvement in execution The credit policy is designed to meet customer needs while ensuring effective risk control The branch offers credit to all customers equally, regardless of their economic sector, focusing on financial capacity, business efficiency, and loan security measures, and develops a range of diversified credit products to cater to varying customer requirements.
Analysis of models of factors affecting the access to credit of small and
Before applying logistic regression analysis, the author conducted surveys targeting 300 SMEs with credit procedures at Vietinbank Thanh Hoa branch The research focused on three key areas: statistics on business owners, characteristics of enterprises, and credit statistics of SMEs The analysis included statistical indicators such as frequency, percentage, average value, and standard deviation.
[Table 4-5] Statistics of factors of business owners
Items Mean value Standard deviation
Source: Extraction of SPSS data
Survey results indicate that male business owners significantly outnumber female counterparts, with 189 males representing 63% and 111 females making up 37% This highlights a prevailing trend in the region where small and medium enterprises are predominantly led by men Additionally, the majority of business owners fall within the 25-40 age range, with 84 owners under 25 years old, accounting for 28%, and 129 owners aged 25-40.
In a recent survey, business owners aged 40 years and older represented 43% of the total enterprises, with those aged 40-50 accounting for 20.7% The predominance of younger business owners may impact their management capabilities, financial acumen, and access to loans Notably, the average experience of these owners is only 4 years, indicating a lack of maturity in the province's business landscape Educationally, the distribution is fairly balanced, with 25% of respondents being high school graduates, 22% holding college degrees, and 26% being university graduates However, only 53% of the surveyed businesses have owners with tertiary or postgraduate education, highlighting challenges in capital management and utilization.
[Table 4-6] Statistics of business characteristics
Items Mean value Standard deviation firmage 4.30 2.600 size 7.54477 8.860501 loansize 3435.93 3469.642
Source: Extraction of SPSS data
A recent analysis of 300 enterprises at the Vietinbank Thanh Hoa branch reveals that the majority of borrowers are concentrated in the construction and service sectors, with 150 construction companies making up 50% and 97 service trade enterprises accounting for 32.3% of the total surveyed The sample is representative, highlighting that most borrowers are primarily engaged in these industries The surveyed SMEs are relatively young, with an average operational time of 4 years, and range from 1 to 18 years The average asset size of these enterprises is VND 7.54 billion, with the smallest at VND 431 million and the largest at VND 47.7 billion However, the asset size appears to have a limited effect on their ability to finance and repay loans, as corporate loan amounts vary between VND 150 million and VND 17 billion, averaging VND 3.43 billion, indicating that many businesses are seeking loans beyond their financial capacity This trend is evident in the access to SME loans at the branch.
[Table 4-7] Statistics of loans and credit relationship of SMEs
Source: Extraction of SPSS data
Statistics from Vietinbank Thanh Hoa branch indicate that a significant majority of SMEs, specifically 79.3% or 238 enterprises, rely on short-term loans This reliance creates substantial repayment pressure, particularly in a challenging economic environment characterized by fierce competition, high inflation, and fluctuating input and output prices Consequently, businesses are compelled to seek flexible loan options to meet their cash flow needs Among 300 surveyed enterprises, 227 reported borrowing primarily for production-related purposes, such as acquiring raw materials and investing in technology, which complicates their ability to manage interest payments and repayments The relationship between local businesses and banks is strained, with only a fraction of 154 surveyed enterprises maintaining a satisfactory rapport Banks are tightening credit, making it difficult for small businesses to secure loans due to perceived risks and inadequate collateral Additionally, many enterprises lack viable business plans and transparent financial statements, further hindering their access to bank loans Despite these challenges, 76.6% of businesses maintain strong customer relationships, which positively impacts their solvency and revenue However, the difficulty in accessing credit from financial institutions forces many businesses to rely on personal networks, with 79% indicating strong ties to relatives and friends for funding, highlighting the barriers to obtaining institutional credit.
[Table 4-8] Statistics of access to credit by SMEs
Source: Extraction of SPSS data
A survey of 300 SMEs applying for loans at the Vietinbank Thanh Hoa branch revealed that 71% of enterprises have mortgaged assets The branch prioritizes loans for SMEs with collateral, which significantly influences their ability to access credit However, the complex procedures for collateral assessment can hinder capital return and affect business reputation, leading to production stagnation While most businesses find the interest rates acceptable, they are not always flexible enough to meet the dynamic needs of production and repayment Ultimately, only 61.6% of surveyed enterprises deemed the lending conditions reasonable, highlighting the challenges posed by collateral requirements and credit policies.
Out of 300 surveyed SMEs, 183 enterprises, or 61%, have access to loans, highlighting the challenges businesses face in securing capital for growth Banks encounter difficulties in fund disbursement due to the need for profit generation while managing risks associated with overdue debts and bad loans Key factors influencing banks' lending decisions include collateral, business size, loan amount, loan purpose, the owner's experience, customer relationships, and loan terms Conversely, businesses prioritize understanding loans, mortgages, lending procedures, corporate credit policies, and loan terms.
The Omnibus test indicates a significant relationship between the independent variables and the dependent variable, with a P-value of 0.000, which is less than 0.01, confirming the model's significance for the ten independent variables included Additionally, the P-value of 0.000, which is also less than 0.1, suggests that the adjusted R² is greater than 0, demonstrating that the variables in the Binary Logistic regression equation effectively explain the variance in the dependent variable Therefore, the model appropriately identifies the factors influencing access to credit for SMEs in Thanh Hoa Province.
[Table 4-9] Testing of suitability of general model
Source: Extraction of SPSS data
Testing of suitability of the model
Binary Logistic regression evaluates model suitability using the -2 Log Likelihood (-2LL) criterion, where a smaller -2LL indicates better suitability The ideal -2LL value is 0, signifying no error and a highly suitable model According to Table 4.10, the -2LL value of 268.559 suggests that the overall model demonstrates good suitability.
The R Square Correlation Coefficient indicates that 48.5% of the variation in access to credit is explained by the model's variables, suggesting that the author's research model, based on a sample of 300, is reasonable (Table 4.10).
[Table 4-10] Testing of suitability of the model
Model Summary Step -2 Log likelihood Cox & Snell R Square Nagelkerke R Square
Source: Extraction of SPSS data
4.4.2.3 Testing of explanation of the model
The study assesses the interpretation level of a model predicting the probability of loan accessibility for SMEs at the Vietinbank Thanh Hoa branch This analysis occurs amid economic challenges, including rising inflation, fluctuating prices, and stringent banking credit policies, compounded by intensified competition and ineffective support measures for SMEs.
[Table 4-11] Level of explanation of the model
Access to loans Accuracy of forecasted results (% )
Percentage of accruate forecasting of the model 82.0
Source: Extraction of SPSS data of appendix 3
In a survey involving 183 SMEs applying for loans at the branch, the model accurately predicted loan access for 148 respondents, resulting in a correct prediction rate of 88.5% Among the 117 respondents without access to credit loans, the model correctly identified 84 subjects, yielding a prediction rate of 71.8% Overall, out of 300 respondents at Vietinbank Thanh Hoa, the model successfully predicted loan access for 246 individuals, achieving an overall prediction rate of 82% These findings demonstrate the effectiveness of the binary logistic regression model employed by the author.
The regression analysis presented in Table 4.12 indicates that the theoretical model identifies a significant variable influencing the probability of accessing credit capital at the Vietinbank Thanh Hoa branch, with a significance level of P < 0.1 In contrast, variables such as gender, age of the business owner, qualification of the business owner, experience of the business owner, age of the firm, enterprise size, industry, loan term, purpose of loans, loan size, relationship with the bank, relationships with friends and relatives, relationships with clients, mortgaged assets, interest rate, and credit policy do not demonstrate statistical significance, as their P values exceed 0.1 The dependent variable in this analysis is the ability of SMEs to access credit capital at the Vietinbank Thanh Hoa branch.
[Table 4-12] Binary Logistic regression results Variables in the Equation
AGE 094 191 244 1 622 1.099 bachelor -.273 140 3.817 1 051 761 ownerexp -.103 054 3.604 1 058 902 firmage 075 5.529 1 019 838 size 045 482 1 488 1.032 sector 459 239 3.683 1 055 1.583 loansize 000 000 971 1 325 1.000 timepayment 2.097 397 27.895 1 000 8.138 purpose 2.546 409 38.735 1 000 12.759 combank -.054 111 240 1 624 947 customer 372 207 3.242 1 072 1.451 friend 503 218 5.316 1 021 1.654 asset 808 339 5.662 1 017 2.243 interest 329 155 4.506 1 034 1.390 creditpolicy -.219 130 2.809 1 094 804
Constant -10.867 1.752 38.474 1 000 000 a Variable(s) entered on step 1: GENDER, AGE, bachelor, ownerexp, firmage, size, sector, loansize, timepayment, purpose, combank, customer, friend, asset, interest, creditpolicy
Source: Extraction of SPSS data
Results of regression analysis using binary logistic function by SPSS IBM
A study involving 300 small and medium enterprises (SMEs) applying for credit loans at Vietinbank Thanh Hoa branch identified 16 observed variables affecting credit access Among these, 12 variables were statistically significant at 90%, 95%, and 99% levels, while 4 were not Notably, the purpose of the loan significantly influenced credit access with a coefficient of β10 = 2.546 at a 99% significance level, followed by the time payment factor with β9 = 2.097, also significant at 99% Other significant factors included Asset (β14 = 0.808) and Gender (β1 = 0.764) at a 95% significance level Friend relationships and business sector showed positive effects with lower coefficients of β13 = 0.503 and β7 = 0.459, respectively, both significant at 95% Customer relationships (β11 = 0.372) and interest rates (β15 = 0.329) positively impacted loan access at 90% and 95% significance levels Conversely, Bachelor and credit policy negatively affected access with coefficients of β2 = -0.273 and β16 = 0.219 at 95% and 90% significance levels, respectively Additionally, firm age (β5 = -0.177) and owner experience (β4 = -0.103) negatively impacted credit access at 99% and 95% significance levels The model accurately predicted 246 out of 300 loan applications, resulting in an 82% prediction rate, indicating the model's relevance The Nagelkerke R Square Correlation Coefficient revealed that 48.5% of the variance in credit access was explained by the model's variables, confirming the study's validity.
Research results
The analysis of research data from 300 small and medium enterprises in Thanh Hoa province applying for loans at Vietinbank Thanh Hoa reveals that the findings align with the original theoretical model developed by the author, which is based on the studies of Nhung Nguyen, Christopher Gan, and Baiding Hu.
The study highlights that various factors such as cultural backgrounds, gender, recognition level, experience, study time, and workplace influence experts' assessments of credit loan accessibility at Vietinbank Thanh Hoa branch The Binary Logistic regression model validates the theoretical framework, aligning with credit risk management practices for SMEs in Thanh Hoa province Sixteen independent variables, including gender, age of the business owner, qualifications, experience, firm age, enterprise size, industry, loan terms, loan purpose, loan size, relationships with banks, friends, clients, mortgaged assets, interest rates, and credit policies, were analyzed to determine their impact on SMEs' ability to access credit Notably, the regression analysis indicates that male business owners have a higher likelihood of securing loans compared to their female counterparts, reflecting the prevailing dominance of men in corporate governance and social networks.
The study by Joseph Kofi Nkuah, John Paul Tanyeh, and Kala Gaeten (2013) highlights that the purpose of a loan significantly impacts banks' lending decisions to SMEs Specifically, the reasons for borrowing and the intended use of capital play a crucial role in shaping these decisions Additionally, factors such as borrowing methods, debt repayment plans, and inefficient capital usage can increase the risk of overdue payments and bad debts for financial institutions.
The loan term factor significantly influences the likelihood of obtaining loans, aligning with the expectations outlined in the research model based on Phuong Nu Minh Le's hypothesis (2012) Currently, the primary loan offerings for SMEs in the province are predominantly short-term and medium-term To better support businesses, the bank should consider diversifying its loan terms and placing greater emphasis on medium and long-term loans in the future.
The collateral factor significantly enhances the likelihood of loan access for SMEs at Vietinbank Thanh Hoa, aligning with the expectations outlined in the research model proposed by Hezron Mogaka, Osano, and Hilario Languitone.
In 2016, it was found that branch lending has shifted to being predominantly mortgage-based, highlighting the need to focus on the process, content, and quality of collateral assessments Additionally, there is a necessity to develop other financial products to better support and engage with businesses.
Friendships and business relationships significantly influence lending activities, supporting the hypothesis by Nhung Nguyen, Christopher Gan, and Baiding Hu (2015) The findings indicate that branches prioritize lending to the construction and service industries, which are vital to Thanh Hoa province's economy To enhance business efficiency and diversify financial resources, SMEs in the region must seek solutions to strengthen their networks and credit relationships.
Interest rates and credit policies significantly influence loan access probabilities for SMEs, aligning with Phuong Nu Minh Le's hypothesis (2012) While most businesses find interest rates generally acceptable, they often lack the flexibility needed to support production and repayment capabilities Factors such as collateral requirements, business capacity, and credit policies further complicate access to credit Consequently, there is a pressing need for more adaptable and effective interest rate regulations Additionally, the age and experience of business owners negatively impact the likelihood of SMEs in Thanh Hoa province securing credit, reinforcing Phuong Nu Minh Le's findings.
To enhance access to credit, enterprises must focus on improving their management practices and the quality of their human resources Additionally, banks should implement measures to support businesses by providing training in corporate governance for owners and key personnel.