This information was presented at the workshop "Cash Flow Management and Capital Mobilization for Businesses in the New Context" on 3/7.

According to the PCI 2025 Report by the Vietnam Chamber of Commerce and Industry (VCCI), access to capital remains a significant barrier for businesses. Specifically, over 21% of businesses consider financial access their biggest difficulty, a figure higher than the global average of 17,8% and the East Asia - Pacific region's 15,7%.

As many as 8,2% of businesses are unable to access credit or are hesitant to apply for loans due to unfavorable conditions. Approximately 18% of other businesses can only access a portion of their capital needs.

Collateral is currently the biggest barrier for borrowers, according to the PCI 2025 report. Approximately 75% of businesses surveyed by VCCI reported that they cannot borrow capital without collateral.

"The proportion of loans requiring collateral in Vietnam is up to 93,5%, significantly higher than the global average and countries in the region such as Malaysia and Thailand", said Ho Anh Tuan, Deputy Director of VCCI Central - Central Highlands.

This situation indicates that credit institutions still prioritize tangible assets, while lending models based on cash flow or business plans are not widely implemented.

Workers at a factory in Da Nang. Photo: Nguyen Dong

Furthermore, rising cost pressures also pose challenges for businesses. The survey shows that 56,3% of entities face stricter credit conditions and interest rates than large enterprises and state-owned enterprises. Additionally, 46,1% of businesses experienced unfavorable changes to loan terms, and 44,5% still had to pay "facilitation fees" to receive disbursements.

Complex application procedures also hinder businesses' access to capital. VCCI's survey recorded that 45% of businesses found loan application procedures cumbersome. Many businesses reported having to settle old loans as a commitment to get new ones, only to have their applications halted or credit limits reduced afterward.

According to Ho Anh Tuan, complex procedures and information gaps create a vicious cycle, preventing many businesses from accessing capital from the very first step.

Given this situation, businesses propose that banks gradually shift from a collateral-based model to assessing business performance and actual creditworthiness.

According to Duong Quoc Anh, former Vice Chairman of the National Assembly's Economic Committee, the policy of shifting towards evaluating financial capacity and project feasibility was proposed many years ago. However, its implementation remains challenging due to market fluctuations and increased credit risk. He believes that the most important thing now is for banks to understand businesses' capabilities and cash flow. Conversely, businesses must clearly understand credit institutions' appraisal regulations.

Sharing this view, Le Thanh Quy Ngoc, Acting General Director of VietBank, stated that the most important keyword is "customer understanding". To achieve this, businesses must proactively provide transparent information about their production activities, financial situation, and capital usage purposes.

"For businesses with a clear operational foundation, transparent cash flow, and good business history, unsecured lending or lending without collateral is no longer a major issue", Ngoc said.

The VietBank representative recommended that small and medium-sized enterprises need to change their mindset, use capital for its intended purpose, and choose loan terms that match their cash flow cycles. At the same time, businesses also need to gradually separate personal and business finances, improve their accounting systems, and increase payments through bank accounts with transparent transaction histories.

Nguyen Dong