Determinants of access to formal credit by the industrial and constructional small and medium enterprises in Can Tho city, Vietnam

Vuong Quoc Duy *

* Corresponding author (vqduy@ctu.edu.vn)

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Received: 20 Aug 2015
Revised: 08 Oct 2015
Accepted: 19 Feb 2016
Published: 28 Feb 2016
DOI: 10.22144/ctu.jen.2016.009
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Vuong, Q. D. (2016). Determinants of access to formal credit by the industrial and constructional small and medium enterprises in Can Tho city, Vietnam. CTU Journal of Innovation and Sustainable Development , (02), 112-121. https://doi.org/10.22144/ctu.jen.2016.009
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No. 02 (2016)

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Abstract

The studies “Determinants of access to formal credit of industrial and constructional Small and Medium Enterprises (SMEs) in Can Tho City of Viet Nam”. The study used primary data from 200 industrial and construction SMEs in the Can Tho City in 2013. Using the Probit model, the findings have showed that three factors including number of operational years in business of the enterprises, the scale of enterprises and the enterprises’ revenue growth rates are statistically significant affect on the ability to access credit by SMEs. The results implied possible solutions to improve the possibility to access to formal credits industrial and constructional SMEs given by financial institutions, to assist the Enterprises to invest and widen their production and performance.
Keywords: Credit, SMEs, Industry, Construction, Can Tho

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