Motorcyclists near the SBV headquarters. — Reuters
HO CHI MINH CITY: Many micro, small and medium-sized enterprises (MSMEs) are struggling to access credit in the country’s south, despite banks offering numerous loan packages with preferential interest rates.
Key issues preventing MSMEs from accessing bank credit include a lack of collateral, inadequate financial records that fail to meet bank requirements and existing bad debt.
Vietnam’s tourism industry is on a growth path from 2024, aiming to attract 22 million to 23 million international visitors and 120million to 130 million domestic tourists.
Businesses in the sector are forecast to recover this year.
However, tourism MSMEs are facing significant challenges in accessing bank credit to support their operations.
General director of Vietnam Tourist JSC, Pham Anh Nhan, said that banks currently offer preferential credit packages, including both unsecured and secured loans for businesses.
However, accessing capital for tourism is not easy.
To obtain bank loans, businesses must provide financial documents, including financial statements for the past three years and show profits.
Nhan said that during the Covid period of 2021 and 2022, most tourism businesses reported losses.
This has made it very difficult for them to access bank loans, he added.
Similarly, construction material MSMEs in Ho Chi Minh City also face difficulties accessing loans. This is due to the challenges in implementing real estate construction projects in the city.
In order to maintain operations, small businesses resort to pledging assets for financial resources to cover salaries and working capital.
A representative of a business said: “At this time, our company wants to invest in expanding but no longer has collateral to secure loans.
“Therefore, the company has partnered with customers, using their collateral to borrow funds.
“However, because the third party’s assets are not related to the company, some banks refuse to approve the loans.’”
According to a survey by the Ho Chi Minh City Union of Business Associations (HUBA) released in February this year, 37% of businesses in the city are facing a shortage of operating capital.
HUBA also mentioned that many businesses are currently short of funds to repay previous debts and supplement working capital for their operations. — Viet Nam News/ANN
