Private sector development in Southeast Asia is fundamental to boosting growth and development in many countries in the ASEAN region. The influx of startups, as well as small and medium enterprises (SMEs) in the regions, have attracted the attention of numerous global investors and venture capitalists. It will help both developing and less developed countries advance and ultimately reduce poverty, increase employment, and have various positive multiplier effects in the countries. However, there are still many SMEs that are unable to thrive and grow due to their inability to access financing from banks. This commentary focuses on the underlying reasons why some SMEs lack access to finance, specifically in Vietnam. This research Identified three underlying reasons why there is a lack of access to finance and credits in Vietnam; nepotism in the banking industry, the role of gender, and unfriendly business climate for SMEs.
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