It is much easier for businesses to access credit in Vietnam thanks to improved regulations and growth of joint stock commercial banks, economists said on November 9.
Vietnam has carried out reforms to allow out-of-court enforcement of collateral and expanded the range of assets that can be used as collateral, according to the World Bank report entitled Doing business 2008.
The strong expansion and diversification of services by joint stock banks have given small- and medium-sized enterprises greater access to loans, said a World Bank specialist.
This year’s report ranks Vietnam 91st out of 178 countries and territories in the world, up three places against last year.
Credit for businesses and protection of investors were the two spheres that saw the biggest reforms, the report said.
According to Mr. Dinh Van An, director of the Central Institute for Economic Management, the report is in line with other similar reports on Vietnam’s business environment, though it does not reflect a complete picture of “doing business” in the country, e.g., it does not reflect administrative reforms in implementation of the 2005 Enterprise Law and Investment Law, which further eased difficulties in starting a business.-