Determinants of The Accessibility of Vietnamese Enterprises to Capital from Banks and Credit Institutions

Abstract

    The difficulty of enterprises in accessing capital is one of the barriers for development of Vietnamese enterprises in general and small and medium enterprises (SMEs) in particular. Difficult accessibility to capital forces enterprises to pay additional costs (both formal and informal) in order to obtain loans, thereby increasing their cost of production. This research using the Multilogistic model accesses the factors that influence accessibility to capital from financial institutions (banks and credit institutions) and uses sample survey data from 695 enterprises implemented in December 2017. The research points out that besides the factors related to the business and institutional environment, the factors related to the internal problems of enterprises such as size, ownership form, age of the enterprise, collateral, return on assets (ROA), quality of business reports... or informal expenses, all affect accessibility to loans from financial institutions. Based on that, the author proposes a number of recommendations to improve accessibility to these loans for enterprises in general and SMEs in particular in Vietnam in the current period.