Credit Capital Absorption Capacity: Intrinsic Problems of the Enterprise System in Vietnam

Abstract

Quarterly Report I/2014 of the State Bank of Vietnam (SBV) shown that, to March, 2014, total credit growth experienced a significant increase of 1.35% after two consecutive decreasing months (to 0.55% in January and 0.65% in February). However, the supporting industrial credit and import- export credit obtained a quite small growth, especially credit for small-and medium-sized businesses (SMEs) remained a decline trend compared to the end of 2013. This situation has been derived from many reasons, of which, regarding to businesses, some basic intrinsic problems need to be analyzed and evaluated to help businesses absorb much more credit flows as well as help the SBV to effectively adjust the capital injection into the economy in the future.