Business capacity, cash flow and repayment ability should play a greater role in credit assessment, alongside collateral, VINASME Chairman Nguyen Van Than told a conference in Hanoi on November 11.

Many small and medium-sized enterprises (SMEs) remain unable to secure bank loans despite having orders, markets and the capacity to generate cash flow, according to Mr. Than. He called for closer links between businesses and lenders, supported by digital transformation.

Moving beyond collateral-based assessment

The Vietnam Association of Small and Medium Enterprises (VINASME) and Ho Chi Minh City Development Commercial Bank (HDBank) jointly organized the conference, “Financing Small and Medium Enterprises on a Digital Platform,” in Hanoi on November 11, 2026. Its message was “Connect - Digitalize - Be Flexible.”

Participants included Dr. Nguyen Van Than, Deputy of the 16th National Assembly and Chairman of VINASME; State Bank of Vietnam (SBV) Deputy Governor Nguyen Ngoc Canh; HDBank Vice Chairman Pham Quoc Thanh; Mr. Le Trung Quan, Deputy of the 16th National Assembly and Standing Member of its Economic and Financial Committee; Ms. Trinh Thi Huong, Deputy Director of the Ministry of Finance’s Department of Private and Collective Economic Development; and Ms. Pham Thi Thanh Tung, Deputy Director of the SBV’s Credit Department. VINASME top leaders, experts, financial institutions and businesses also attended.

The event focused on strengthening bank-business connections and using data and digital platforms to improve credit assessment and expand access to financing.

In his opening remarks, Dr. Than described SME access to credit as an urgent priority in implementing policies to develop the private economy.

“To have 2 million businesses by 2030, to have the private sector grow by 10-12% annually and participate more deeply in the global value chain, we must solve the capital problem,” the VINASME Chairman emphasized.

VINASME’s observations indicate that access to capital remains limited, including for businesses with orders, viable business plans and cash-generating capacity, he said.

The barriers are particularly pronounced for micro-enterprises, startups, innovative businesses and household businesses transitioning into formal enterprises. Banks, meanwhile, must safeguard the financial system, manage risk and maintain credit quality.

Addressing both concerns requires a change in how lenders assess businesses, Dr. Than stated, “It is crucial to gradually shift from evaluating businesses primarily through collateral to a more comprehensive assessment of business capacity, cash flow, and debt repayment ability.”

His proposal would broaden the basis for credit decisions without relaxing risk controls. A clearer picture of revenue generation and repayment capacity would give banks more evidence when considering financing requests.

Digital data to support credit decisions

Big data, artificial intelligence and electronic identification could help lenders assess financial capacity, assign credit ratings, identify risks and shorten appraisal times, according to the VINASME Chairman.

The approach is consistent with the Politburo’s Resolution 68-NQ/TW, issued on May 4, 2025, on private-sector development. The resolution encourages lending based on production and business plans, market expansion, data, cash flow and value chains, together with appropriate forms of collateral.

For SMEs, digitalization needs to translate into a stronger ability to demonstrate business performance. Clearly organized financial and cash-flow information would provide a firmer basis for discussions with banks and credit rating agencies.

Dr. Than described the fast credit financing solution with attractive interest rates being implemented by VINASME and its partners as a feasible way to help businesses access funding and sustain growth in the remaining months of 2026 and during 2027–2031.

Loan conditions need to be clearly communicated so businesses can prepare applications and select financing suited to their production and business cycles.

Closer coordination to connect businesses with capital

Dr. Than also called for stronger cooperation between banks, business associations and credit rating agencies to connect companies with financing.

He said the model should provide a reliable point of contact for the SBV, commercial banks and financial institutions to develop cooperation programs with VINASME, helping businesses maintain and expand operations.

VINASME pledged to act as a bridge between regulators, lenders and the business community. The association will gather businesses’ capital needs, report practical obstacles and coordinate programs supporting access to digital credit.

The proposal builds on Dr. Nguyen Van Than’s earlier recommendations to diversify SME funding sources and make greater use of business cash flow. Business and Integration previously reported on his calls to develop a credit rating ecosystem and business data to open additional financing channels.

The priority, he said, is to connect businesses that need capital with institutions able to provide it. Digital platforms should support more accurate assessments, faster appraisals and credit flows directed toward production and business activities.

Business & Integration - Vietnamese version: Chủ tịch VINASME đề nghị đánh giá tín dụng doanh nghiệp dựa trên dòng tiền; reported by Bao Loan, illustrated by Tran Linh