Hanoi (VNS/VNA) - With an increasingly significant role in the economy, the small and medium-sized enterprise (SME) sector is becoming a key focus in banks’ credit growth strategies, prompting lenders to roll out a range of solutions to support businesses that often run on tight cash flow.
According to the World Bank, by 2030 Vietnam is projected to have around 2.4 million SMEs, accounting for more than 98% of total enterprises nationwide.
In practice, SMEs typically have limited financial reserves, while their production and business activities depend heavily on short-term capital turnover and daily cash flow. Cash inflows and outflows are closely tied to order schedules, payment deadlines and the ability to rotate capital. Even minor timing disruptions, such as slow disbursement or delayed payments from partners, can upset business plans.
In response, many banks have adjusted their approach, shifting from appraisal models based mainly on collateral to assessments centred on cash flow and operational capacity.
Banks have also stepped up investment in digital platforms and specialised financial solutions for SMEs, expanding their services beyond lending to include cash flow management, corporate digital banking and electronic payments.
For example, MB’s MISA Lending platform provides an online overdraft facility for SMEs with a limit of up to 3 billion VND (116,000 USD). The process is fully digitised, enabling businesses to submit applications and receive preliminary approval quickly based on electronic invoice data, without requiring collateral. Many businesses have welcomed the speed and transparency of the solution.
Some banks approach SMEs from a cash flow management perspective. At ABBank, the ABBank Business platform is designed to address common challenges in corporate financial management, particularly cash flow control and transaction speed. By centralising core financial operations on a single platform, businesses can monitor income, expenses and balances in real time, reducing data fragmentation. A multi-level approval mechanism also supports appropriate internal control processes and helps mitigate operational risks.
Meanwhile, VPBankSME has adopted a broader approach to capital and management solutions, developing support packages based on actual cash flow and business cycles. Rather than offering standalone loans, the bank structures solutions around operational needs, from managing revenue and expenditure to payments and capital allocation at each stage. This enables businesses to use financial resources more proactively, especially when rapid capital turnover is required or during peak seasons.
At OCB, General Director Pham Hong Hai said the bank has implemented a separate credit policy focusing on evaluating business models, operational plans, founders’ management experience and the stability of cash flow for start-ups, a distinct segment within the SME sector.
According to Hai, these factors directly reflect a business’s ability to survive and grow when it has not yet accumulated sufficient collateral.
To broaden access to capital, OCB also collaborates with investment funds that include capital contributions from Japan’s Aozora Bank to provide financial solutions tailored to start-ups. Unsecured working capital loans are structured primarily on the basis of cash flow and business prospects, creating greater opportunities for enterprises with limited initial financial resources to obtain funding.
Dr Nguyen Huu Huan of Ho Chi Minh City University of Economics said the most common channel for SMEs to access international capital remains commercial banks, which act as intermediaries to mobilise and allocate funds from global impact investment and green finance funds.
According to Huan, the effective use of capital requires banks not only to disburse funds but also to support businesses in preparing documentation, demonstrating capacity and ensuring that capital is used for its intended purpose. These are mandatory requirements from international funds, which impose strict standards on transparency and risk control.
In practice, banks are moving towards becoming financial partners to businesses, providing timely capital while simplifying procedures and designing credit packages suited to the needs of each customer segment./.
VNA
