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Munich Personal RePEc Archive

SME Access to Credit

Rand, John and Tarp, Finn and Coung, Tran Tien and Tam, Nguyen Thanh (2009): SME Access to Credit. Published in:

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Abstract

The aim of this paper is to inform the reader about the access to credit of small and medium sized enterprises (SMEs) in Vietnam based on two SME surveys. Recent evidence from a variety of sources suggests that credit to available to SMEs has increased over the past few years. This is confirmed by the two SME surveys. Fewer firms which applied for credit in 2005 were denied credit as compared to 2002. However, the rapid development of the private sector has also increased demand for credit (especially among the larger SMEs); and it appears that the formal financial sector is just managing to keep track with growth in general. We conclude by discussing these results and formulate a set of policy recommendations.

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