Financing sources and access to finance of SMEs in Vietnam in the context of the economic intergration

Abstract

SMEs play a crucial role in the economic development, job creation, and social-economic stability in a country. However, in the context of economic integration, especially when Vietnam joins the ASEAN Economic Community (AEC) and participates in Trans Pacific Partnership (TPP) trade agreement recently, SMEs will have to face with the fierce competion from foreign counterparts and other enterprises. One of the constraints that SMEs themselves, researchers, and policy makers concern with is how to diversify the financing sources and improve the access to finance capability of SMEs in Vietnam. First, this paper will provide some fundamental information about SMEs and present some main financing sources for SMEs in some countries and in Vietnam. Second, this paper will explore some constraints in accessing to finance of SMEs in Vietnam. Finally, the paper will demonstrate some international experience in improving access to finance capability of SMEs and add some recommendations for policy makers in Vietnam