HÀ NỘI — It is critical for small- and medium-sized enterprises (SMEs) to improve financial transparency and accelerate digital transformation to strengthen competitiveness and adapt to a rapidly changing business environment, attendees at an SME dialogue heard on June 24.

The event was jointly organised by the Hanoi Business Association (HBA), the Vietnam Association of Consumer Goods Development (VACOD) and Asia Commercial Joint Stock Bank (ACB) to discuss opportunities and challenges facing SMEs as well as solutions to promote their development.

Nguyễn Hồng Sơn, president of HBA and VACOD, said that Vietnamese economy is entering a period of profound transformation, marked by significant changes in State management policies.

Policies from digital transformation and administrative simplification to taxation, customs, investment and financial policies are becoming more transparent and efficient, he said. 

This provides a foundation for businesses to grow but also poses significant challenges, Sơn added.

Collateral requirements remain a major barrier preventing many small businesses from accessing bank loans, despite SMEs accounting for around 95 per cent of enterprises in Việt Nam.

ACB General Director Từ Tiến Phát said banks were under increasing pressure to support economic growth as the Government pursues its target of achieving double-digit expansion.

He said financial transparency had become increasingly important for both lenders and borrowers, as practices once tolerated now carried greater legal and financial risks. Wider adoption of e-invoices and digital payment systems would help businesses build reliable financial records and improve access to credit, he said.

Phát added that banks were increasingly using AI-based credit scoring systems that analyse transaction data and payment histories when assessing borrowers.

"The more transparent the data, the easier it is for banks to evaluate creditworthiness and make lending decisions," he said.

Pointing out rapid changes in the business environment over the past two years, Đậu Anh Tuấn, deputy secretary general of the Vietnam Chamber of Commerce and Industry, urged a further shift from a compliance-focused approach towards one that helps businesses reduce risks and operating costs.

Low-cost compliance tools, including accounting software, e-invoicing systems and digital platforms, are particularly important for smaller firms that often lack resources to meet increasingly complex requirements, he said. — VNS