Factors affecting the ability to access bank credit of enterprises listed on the stock market - 6

Listed enterprises in recent years have difficulty accessing credit capital from commercial banks due to many reasons, of which the main reason is that commercial banks do not trust these enterprises. Therefore, in order to increase the trust of commercial banks, listed companies must establish their own creditworthiness, specifically:

– Strictly comply with the provisions of the State and the law in production and business activities.

– Increase the accuracy and truthfulness of financial statements, implement the accounting bookkeeping regime as prescribed.

 – Increase accumulation and increase investment to increase financial capacity, gradually meet the conditions for accessing bank credit capital.

– Make the most of the existing comparative advantages of each enterprise to focus on developing production and business, building a medium and long-term business strategy.

– Focusing on research and innovation of machinery, equipment and technology to make a breakthrough in improving product quality and lowering product costs.

– Strengthening the link between businesses and consumers to capture feedback on products, thereby perfecting products and services according to customers’ requirements, improving the competitiveness of businesses, capturing gain market share to help stabilize the production and business situation.

– It is necessary to learn and apply financial tools to prevent risks in the modern market economy such as insurance, forward contracts, options, swaps… to manage price fluctuations. interest rates, exchange rates, etc. affect the business results of enterprises.

– It is necessary to join business associations according to their industry in order to exchange and learn management experiences of successful enterprises in the same field, promote trade exchanges and take advantage of the protection of other businesses. Association under competitive pressure.

4.1.2. Develop feasible production and business projects and plans

Currently, most of the projects and plans built by enterprises have not met the requirements of the appraisal. The low quality of projects and plans is a big obstacle that makes it difficult for businesses to access capital from commercial banks. Therefore, businesses must actively access information about the market to build investment projects in competitive products. The project must be carefully prepared, providing enough information to present to the commercial bank about its feasibility and reliability. It is necessary to enlist consulting services or support from experts to be able to build highly convincing business plans and projects.

Enterprises need to be proactive in building projects and investment methods in accordance with their capital, technology and human capacity. Especially, it is necessary to be transparent about financial issues to use resources more efficiently, reduce costs and risks for both businesses and banks.

In addition, businesses must also prepare and implement other provisions in the loan application such as: completing documents proving ownership of assets so that the business is eligible for mortgage or pledge when applying for a loan. Borrowing from banks, guaranteeing loan performance, registering insurance transactions, using capital for the right purposes, repaying principal and interest on time…

4.2. To the credit institutions

4.2.1. Diversify credit products

First of all, banks need to quickly develop products in a synchronous manner, while increasing the mobilization of resources, facilitating the provision of capital for businesses, and at the same time developing binding products, creating conditions for businesses to Lack of conditions on collateral can still borrow capital.

The combination of many products and services provided to businesses is also one of the bases to lower lending rates, support enterprises to manage more effectively, grasp market conditions more fully, more timely.

Banks can also increase their access to official funding sources or through programs and projects of organizations, creating sources with low interest rates…

Besides, it is possible to consider debt restructuring, debt rescheduling, credit incentives for business enterprises, if these enterprises can prove the sources of revenue to repay bank loans; develop a form of finance lease to help enterprises quickly innovate technology.

4.2.2. Improve the quality of appraisal work

Appraisal is a very important step that affects the lending decision and also affects the efficiency of the capital that the bank spends. The quality of the input appraisal is the decisive factor for the output credit quality in the future. In order to accurately assess financial capacity, debt repayment ability, debt repayment source through indicators on financial statements such as solvency, profitability, etc., combined with the parameters and results of the financial statements. enterprises in the same industry, of traditional enterprises.

Organize research, information gathering, interviews, business visits… thereby assessing the business management ability of business leaders through organizational capacity, professional qualifications as well as prestige. The credit of the leader is a qualitative standard, so it is necessary to have the sophistication of the credit officer to be able to make an accurate assessment.

Credit officers should learn more about other areas such as technical appraisal, machine specifications and quality, so that they can detect potential risks. hidden…

CHAPTER 4 SUMMARY

In chapter 4, the author has proposed some suggestions to help improve the access to bank credit of listed companies. These suggestions include:

– On the side of listed companies: improve production and business efficiency, increase the credit rating of listed companies; to develop feasible production and business projects and plans

– For credit institutions: diversify credit products; improve the quality of appraisal work.

CONCLUDE

This study achieved two goals set out at the outset. The study has identified 7 main factors affecting the ability to access bank credit of listed companies including: number of years of operation of the company, revenue growth, growth of fixed assets, no profitability, large company size, gender of the owner is female, has a bank account. The study also uses correlation and regression methods to determine the direction of the impact of the above factors on the ability to access credit of listed companies. From the results obtained, the author has made some suggestions to improve the access to bank credit of listed enterprises in particular and of Vietnamese enterprises in general.

The study also has some limitations. The study only surveyed enterprises in the communication technology industry, the service industry, the accommodation industry, the manufacturing industry, the mining industry (oil and gas), the commerce industry, the construction industry and real estate. Due to limited time, it is necessary to have repeat studies for businesses in other industries that are not included in the study and to add other factors affecting the ability to access bank credit. compare and build more efficient models for the whole market. From there, companies in other industries can apply the model to draw their own specific solutions to improve access to bank credit. This is the direction of further research.

REFERENCES

I. Vietnamese

1. Vietnam Development Forum & National Economics University (2012), Impact of monetary policy and global economic recession on Vietnamese enterprises’ ability to access capital and do business .

2. Hoang Trong & Chu Nguyen Mong Ngoc (2005), Research data analysis with SPSS, Statistical Publishing House.

3. GED Entrepreneur Academy (2013), Five issues of listed companies 2012. http://doanhnhan.edu.vn/5-van-de-cua-cac-doanh-nghiep-niemyet-nam 2012/. Updated on 13/08/2013.

4. Nguyen Thi Canh (2005), Methods and methodology of economic scientific research, National University Publishing House, Ho Chi Minh City. HCM.

5. At the financial magazine (2013), Vietnam’s economic situation in July and the first 7 months of 2013.

6. General Statistics Office (2013), Socio-economic situation in 2012.

7. State Securities Commission (2012), Current situation of Vietnam’s stock market, policy recommendations.

8. State Securities Commission (2013), Portal, http://www.ssc.gov.vn, updated 15/08/2013.

9. Vietnamnet (2012), In 2012, credit growth was at a record low of 7%, http://vietnamnet.vn/vn/ Kinh-te/102903/nam-2012–tin-dung-tang-thap-ky- luc7-.html, updated 12/08/2013.

II. English

10.Aghion, P., Bolton, P. (1992), An incomplete contracts approach to financial contracting. Review of Economic Studies 59, 473–494.

11.Allen, L. (1987), The Credit Rationing Phenomenon: A Survey of The Literature. Salomon Brothers Center for the Study of Financial Institutions, Graduate School of Business Administration, New York University.

12.Beck, T., Levine, R. (2002), Industry growth and capital allocation: does having a market or bank-based system matter? Journal of Financial Economics 64 (2), 147–180.

13.Berger, A., Udell, G. (2002), Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure, Economic Journal.

14.Besanko, D., Thakor, A. (1987), Collateral and rationing: sorting equilibria in monopolistic and competitive credit markets. International Economic Review 28 (3), 671–689.

15.Bester, H. (1987), The role of collateral in credit markets with imperfect information. European Economic Review 31 (4), 887–899.

16.Cole, R. (1998), The importance of relationships to the availability of credit. Journal of Banking and Finance 22, 959–977.

17.Hongjiang Zhao, Wenxu Wu và Xuehua Chen (2006) “What Factors Affect Small and Medium-sized Enterprise’s Ability to Borrow from Bank: Evidence from Chengdu City, Capital of South-Western China ‘s Sichuan Province”

18.Konstantinos. Drakos và Nicholas Giannakopoulos (2011) “On the determinants of credit rationing: Firm-level evidence from transition countries”. Journal of International Money and Finance, 1773-1790

19.Levenson, A., Willard, K. (2000), Do firms get the financing they want?. Measuring credit rationing experienced by small business in the US. Small Business Economics 14, 83–94.

20.Yuko Nikaido, Jesim Pais, Mandira Sarma (2012) “Determinants of Access to Institutional Credit for Small Enterprises in India”

APPENDIX 1

Select sample size from a given population

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• Factors affecting the ability to access bank credit of enterprises listed on the stock market - 1
• Factors affecting the ability to access bank credit of enterprises listed on the stock market - 2
•  Current Status Of Listed Companies On   Vietnam  Stock Market
• Factors affecting the ability to access bank credit of enterprises listed on the stock market - 4
• Factors affecting the ability to access bank credit of enterprises listed on the stock market - 5

Source: Krejcie &. Morgan, 1970

APPENDIX 2

LIST OF 242 ENTERPRISES LISTED ON THE STOCK EXCHANGE OF VIETNAM