The President of the Vietnam Small and Medium Enterprises Association has called for the establishment of a specialized digital bank to facilitate loans for small and medium enterprises (SMEs) and household businesses. This proposal was made during a conference aimed at enhancing access to credit for SMEs, highlighting the pressing need for innovative financial solutions in this sector.

SMEs account for approximately 98% of all businesses operating in Vietnam, playing a crucial role in job creation and economic growth. However, these enterprises often struggle to secure financing due to various barriers, including inadequate financial information and lack of collateral. As of August 28, 2026, the total credit outstanding for the economy reached nearly 20.5 million billion VND, with SMEs holding over 4.1 million billion VND, which constitutes about 20% of the total credit.

During the conference, Deputy Governor of the State Bank of Vietnam, Nguyen Ngoc Canh, acknowledged the difficulties SMEs face in accessing credit. He emphasized that while the banking sector has implemented programs aimed at supporting SMEs, significant challenges remain. Many SMEs lack the financial capacity and management skills necessary to meet lending requirements, which complicates their ability to obtain loans.

In response to these challenges, the association proposed five solutions, with the establishment of a digital bank being a key recommendation. This digital bank would cater specifically to the needs of SMEs and household businesses, which often have diverse capital requirements but limited access to traditional banking services.

According to the association, the digital bank could streamline the lending process and reduce the costs associated with loan assessments, making it easier for SMEs to obtain necessary funding. Furthermore, the association suggested that the State Bank of Vietnam should facilitate the licensing of non-deposit-taking lending institutions to diversify credit sources available to SMEs.

In addition to the digital bank proposal, the association called for the development of a receivables financing market to better utilize the substantial assets tied up in accounts receivable. This would provide SMEs with additional liquidity and improve their financial stability.

Overall, the establishment of a specialized digital bank for SMEs could represent a significant step forward in addressing the financial challenges faced by this vital sector of the Vietnamese economy. The proposal is currently under consideration as part of broader efforts to enhance the financial ecosystem for small and medium enterprises.