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SME Access to Credit

  • Rand, John
  • Tarp, Finn
  • Coung, Tran Tien
  • Tam, Nguyen Thanh

The aim of this paper is to inform the reader about the access to credit of small and medium sized enterprises (SMEs) in Vietnam based on two SME surveys. Recent evidence from a variety of sources suggests that credit to available to SMEs has increased over the past few years. This is confirmed by the two SME surveys. Fewer firms which applied for credit in 2005 were denied credit as compared to 2002. However, the rapid development of the private sector has also increased demand for credit (especially among the larger SMEs); and it appears that the formal financial sector is just managing to keep track with growth in general. We conclude by discussing these results and formulate a set of policy recommendations.

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File URL: http://mpra.ub.uni-muenchen.de/29467/1/MPRA_paper_29467.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29467.

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Date of creation: 01 Nov 2009
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Handle: RePEc:pra:mprapa:29467
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  1. John Rand, 2004. "Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing," Discussion Papers 05-01, University of Copenhagen. Department of Economics.
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