Small and medium-sized enterprises (SMEs) constitute approximately 98% of all operating businesses in Vietnam, contributing over 40% to the gross domestic product (GDP) and creating a majority of jobs for the economy. However, a survey by the Vietnam Association of Small and Medium Enterprises (VINASME) indicates that nearly 60% of these businesses face challenges in accessing credit capital.

Vu Van Tien, Chairman of ABBank, has repeatedly emphasized that businesses are the central force of the economy, while banks play a crucial role in directing capital flows into the production and business sectors. In an increasingly open business environment, banks partnering with the SME sector is considered a vital factor for capital to flow into areas that generate value for the economy.

SMEs are identified as a main growth pillar for the bank. Photo: ABBank

To realize this vision, ABBank has implemented various solutions, including operational restructuring, strengthening its leadership apparatus, and developing a new growth strategy. The SME customer segment is identified as one of the bank's key growth pillars for the coming period.

ABBank focuses on small and medium-sized loans, a segment that represents a large volume but remains underserved in the market. The bank has simplified loan conditions, shortened processing times, and committed to approval within a maximum of 36 hours. The integration of online disbursement also helps businesses significantly reduce transaction time and costs.

Furthermore, ABBank is intensifying the application of digital technology in its credit process. Tools such as electronic know your business (eKYB), automated credit scoring systems, rapid approval processes, and cash flow management platforms are being deployed. These initiatives aim to provide businesses with easier access to capital while enabling the bank to manage risk effectively by monitoring cash flow throughout the loan lifecycle.

A teller guides customers through procedures at the counter. Photo: ABBank

Many businesses have successfully accessed capital from ABBank to expand their operations. Ngo Thanh Son, General Director of Novamed Vietnam, a medical equipment research and supply company established in 2021, shared that his company encountered capital difficulties when expanding its business.

According to Son, ABBank approved a credit limit of 50 billion dong, comprising 30 billion dong in loan capital and 20 billion dong in guarantees. The bank also streamlined procedures to ensure the company could import equipment in a timely manner.

"About 10 billion dong from this limit was used to replenish our inventory at the right time, helping us introduce products into hospital systems and gradually expand our market", Son stated.

Timely capital is a vital factor for SME businesses. Photo: ABBank

Another example is Picenza Vietnam Group. During the period when the economy was severely impacted by Covid-19, the company faced the challenge of maintaining cash flow to stabilize operations. ABBank provided support through policies such as interest rate incentives and loan extensions, helping the business overcome its most difficult period in over 20 years of development.

From timely loans during challenging times to a well-designed strategy, ABBank demonstrates a long-term partnership with SME businesses to increase opportunities for this sector. With SMEs accounting for nearly 98% of all businesses in Vietnam, expanding credit to this segment is considered a crucial factor for promoting sustainable economic growth.

Minh Ngoc