Unlocking value in Vietnam’s banking market for SMEs and MSMEs

Small and medium enterprises (SMEs) and micro-SMEs (MSMEs) account for nearly 70 percent of GDP and 80 percent of Vietnam’s employment in 2020.  

Vietnamese SMEs and MSMEs are facing challenges from banks, including:

1. Cannot meet the need of SMEs and MSMEs due to their focus on secured lending (i.e.  big-ticket, collateralized loans)
   
2. Continue to drive traditional commercial credit processes and underwriting that are more suited to large businesses
   
3. Have yet to offer a seamless digital O2O process for customer onboarding and servicing of SME customers

Visit McKinsey for the full article: https://www.mckinsey.com/featured-insights/future-of-asia/countries-and-regions/southeast-asia/southeast-asia-perspectives/unlocking-value-in-vietnams-banking-market-for-smes-and-msmes