LA sum vai trò hoạt động cho vay của ngân hàng thương mại cổ phần đối với phát triển doanh nghiệp nhỏ và vừa nghiên cứu trên địa bàn tỉnh nghệ an

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INTRODUCTION
1. Rationale
Over the years, small and medium-sized enterprises (SMEs) has
confirmed its position and its role in the national economy with particular
dynamic, flexible and adapt to the changes of the market. SMEs create jobs for
nearly half of the employees working in enterprises. Since then, these
enterprises have contributed significantly to solving social problems and
reducing poverty. SMEs also create close links with large enterprises to
effectively participate in the value chain. SMEs are affirming their
indispensable role in the socio-economic development process of the country,
contributing significantly to the GDP and the general export deficit of the
whole country, as well as to each province, including Nghe An province.
As of the end of 2016, despite being faced with the difficult conditions
of the economy, however, SMEs in Nghe An province is still maintained
growth and development. According to statistics, as of 31/12/2016 in Nghe An
province, there are 8,406 enterprises in which the number of SMEs in the
province is 8,345 enterprises (The number of small and medium enterprises in
the field of industry and construction is about 3,195 enterprises with 1,325
manufacturing enterprises and 1,870 construction enterprises). with total
registered capital of the enterprise average of 4.5 billion, employing more than
150,000 people.
Besides the achievements of SMEs on growth, development scale,
Enterprises also contributed greatly to the overall socio-economic
development of Nghe An province, SMEs in general and SMEs in the field of
industry and construction in particular, are also faced with many difficulties
such as capital investment difficulties in production and business, difficulties
in the market, difficulties in science and technology, efficiency of production
and business of SMEs in the field of industry and construction.
Add to that the needs of socio-economic development of Nghe An
province, development requirements of small and medium-sized enterprises

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which require the development of SMEs in the field of industrial and
construction ... To achieve the required development of SMEs in the fields of
industry and construction, capital needs of SMEs in the fields of industry and
construction in particular, SMEs in the province of Nghe An in general is
relatively large. According to the result of survey of the BSPS on the forecast
of the demand for investment capital of SMEs in Nghe An province compared
with the outstanding loans of credit institutions for SMEs (Only meet less than
1/3 of the existing DN) for the role of lending to this region is very important
and urgent.
As of the end of 2016, in Nghe An province has branches of joint-stock
commercial bank has no state capital, branches of commercial banks, shares
of the state capital, ...These banks have contributed significantly in
supporting the loan flow for SMEs in Nghe An province.However, with the
demand for loans of enterprises is large, the size of loan capital of banks has
not really met the needs of enterprises, especially SMEs in the field of
industry in Nghe An province.
The role of commercial banks in lending to small and medium enterprises
development is not only received by policy makers but also by the interest of
researchers, The research was carried out to explore the different aspects of
lending, SME development, some case studies such as Kazuo Ogawa et al.
(2011), Vo Duc Toan (2012), Nguyen Thi Mui (2006) ...
Facing this situation, the authors selected: "Lending role of joint stock
commercial banks in the development of small and medium enterprises Research conducted in NgheAn province" research topics
2. Research objectives and research task
2.1. Objectives
Based on the analysis of the current situation of lending activities of
commercial joint stock commercial banks to the development of SMEs in the

field of industry and construction, the Dissertation proposes measures and


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solutions to enhance the role of lending activities of the joint stock commercial
banks for the development of SMEs in the field of industry and construction in
the Nghe An province until 2025.
2.2. Tasks of research
Commentary and explain the rationale for the role of commercial joint
stock commercial banks in SME development
Analyzing the experience of lending activities of commercial joint stock
commercial banks in the development of SMEs in the field of construction and
civil engineering in some localities and drawing lessons for Nghe An province
Assessing the current situation of lending activities of commercial joint
stock commercial banks to the development of SMEs in the field of industry
and construction in the province of Nghe An, showing the limited achievements
and causes of limitations.
Proposing the directions and solutions to enhance the role of commercial
joint stock commercial banks in the development of SMEs in the field of
industry and construction in Nghe An province by 2025.
3. Subjects and scope of research
3.1. Subjects of research
The role of lending activity of commercial joint stock bank for the
development of SMEs in the industrial sector and construction
3.2. Scope of research
Content: The role of commercial joint stock banks in SME development
is examined in terms of scale and speed development; structure change; quality
and efficiency of business of SMEs in the industrial sector and construction.
Factors affecting the role of commercial joint stock banks in lending:
policy institutions, management organizations, endogenous capacities of banks

and endogenous capacities of SMEs
The scope of research is:
Branches JSB has no state capital and SMEs operating in the fields of
industry and construction in the Nghe An province (Currently in Nghe An
province: branches of a state-owned commercial bank and three state owned


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commercial joint stock banks; 22 branches of commercial banks have no capital
of the State).
Small and medium enterprises in the field of construction industry in
Nghe An province, the proportion of these enterprises accounts for nearly 40%
of the small and medium enterprises in Nghe An - This is one of the groups of
enterprises that make up a large proportion, contributing relatively to the
general economic development of Nghe An province.
Therefore, the authors selected non-state-owned joint stock commercial
banks and SMEs in the construction and construction industry to be
representative of the research subjects.
About time: Information on the situation analysis from 2010-2016,
recommended until 2025
About space: Research in Nghe An, because Nghe An province is located
in the center of the North Central region, this is a locality that has all the
elements for economic development, attract investment capital from enterprises,
business development from the transportation system, It is a gateway of the
North and South. In addition, with the general policy of Nghe An province in
promoting the development of industry and tourism development has been
creating favorable conditions for industrial and construction enterprises in the
area with development conditions.
At the same time, the scale of growth and development of small and
medium enterprises in Nghe An province, the system of branches of joint stock

commercial banks in Nghe An province is very large. Therefore, the author
selected research in Nghe An meet the requirements and ensure the ability to
generalize to other localities across the country.
4. Thesis structure
Along with the introduction, conclusion, list of references, the appendix,
the thesis consists of 4 chapters:
Chapter 1: Overview of Research and Methodology


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Chapter 2: Basis theoretical and Practical Experience on the Lending
Role of Commercial Joint Stock Banks for the Development of Small and
Medium Enterprises
Chapter 3: Situation of lending activities of commercial joint stock
commercial banks for development of small and medium enterprises in the field
of industry and construction in Nghe An province.
Chapter 4: Directions and solutions to enhance the role of commercial
joint stock commercial banks in the development of small and medium
enterprises in the field of industry and construction in Nghe An province in the
coming years.
CHAPTER 1
OVERVIEW AND RESEARCH METHODOLOGY
1.1. Research Overview
SMEs and SME, the development of SMEs is the problem that has
received great attention not only of researchers in the world, but also get the
attention of researchers in the country, as well as policy makers. The studies
mentioned different aspects of this issue under different approaches, this may
be the location of this research important in practice as in theory. Specific
research on this issue:"The Nature of the Firm" by Ronald Harry Coase (1937),
The author presents theories to demonstrate the viability of the SME sector in

each economy such as the theory of economies of scale, or another theory has
been mentioned to explain the inevitability of SME development as the theory
of industrial production organization has been shown in the study:"What
Determines Firm Size?" by Krishana B. Kumar et al. (1999), Or is that the
theory of transaction costs in the work of Oliver et al. (1995).
There are many different factors affecting the development of SMEs, one
of the factors referred to when researching the development of this type of
businesses is the impact of the credit of the organization credit institutions,
banks. The research was carried out to explore the different aspects of
credit, SME development, enterprises ... Specifically: 1.1.1. Overview some
research on the role of lending activities of joint-stock commercial banks for


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SME development
In fact, the target audience of commercial banks in general and
commercial joint stock banks in particular, an important customer segment is
SMEs, and credit loans of banks for This type of SME plays a very important
role in the development of these enterprises. In the study by Sophie Brana et al.
(1999), it was found that: With the use of data from a survey of 420 SMEs
operating in Russia, adding that the secondary data in the annual survey of the
Economic Russia (REB) performed, the data obtained is real the size of their
operations and the actual performance of their businesses.Results of the analysis
of data showed that the research results are contrary to the initial estimate of the
authors, with technical factor analysis and regression model used Probit
hierarchy to test the relationship between different factors: The results indicate
that most of the demand for credit is primarily attributable to weak or debtridden businesses, and that bank credits are largely allocated to firms in
difficulty financial issues or poor financial situation.The approach of this study
is quite similar to that of Commander et al. (1993), where the focus of the
analysis of the research problem based on the physical indicators is mainly as a

change in the production employment or employment is the measure of the
output of the development of SMEs, correlated with financial indicators such as
profitability and financial resources of the enterprise. The study also examines
the relationship between business development and bank lending, because of
the development of businesses or the development strategies of sub-banks
themselves. Relying on the way the use of these credits with both groups of
subjects. At the same time, in the study, the author also developed a model for
predicting the need for credit capital of SMEs for the development of this
business in the face of market hardships or shocks, or face plans and projects of
the business activities.
In addition, Jaffe (1971), Ramey (1992) and Nilsen (2002) obtained
similar evidence supporting the view of redistribution from time series data.
And the advantages and difficulties of SMEs in particular and business in
general when accessing credit loans from banks. Petersen and Rajan (1997)
conducted their first study on the role of credit redistribution, based on data


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from US firms. Based on a national survey of Small Business Financing
(NSSBF), they found that a company's access to external financing had a
significant positive effect on the amount of receivables.They also found that
firms that did not use credit demand had less commercial credit. Moreover, the
results of the study also showed that a longer relationship with financial
institutions was negatively correlated, with a commercial need. Consequently,
they conclude that commercial credit is used more by companies that are
restricted by lenders.
1.1.2. Some research on the role and the factors affecting the lending role
of joint-stock commercial banks for the development of SMEs, factors that
influence the development of SMEs are one of the areas that have received
considerable interest from scientists, and a large number of research studies

have been carried out around SME issues: Research on the status of
development of SMEs on different scales, research on different types of SMEs
in different fields such as construction industry, agriculture, services ...One
aspect that is frequently mentioned in the study of SMEs is the development of
these enterprises, factors that influence the development of SMEs, such as
research by Nguyen Quoc Nghi (2011), Sophie Brana et al. (1999), Vo Duc
Toan (2012), Vo Thanh Danh et al. (2013), Pham Van Hong (2007) ....Each
research approach different directions, analysis and data processing are
different, however, in this study is quite unified view of SMEs: capital size,
number of employees of businesses and national studies use Decree No.
56/2009 / ND-CP to classify SMEs.
Relating to SMEs, bank credit to SMEs not only the attention of policy
makers, managers reality but also the attention of scientists, ...However, these
studies were stopped in consideration of the current status of the development
of SMEs on a national scale, or in different countries. A number of studies have
been conducted for SMEs in the provinces, but are conducted in the southern
provinces and in the provinces of the Mekong River Delta. These studies are
mainly considered in the context of understanding demand of enterprises, the
assessment of enterprises' ability to meet credit capital of commercial banks to


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the development of enterprises, access to capital of enterprises through
statistical data and investigation of enterprise.
1.1.3. The issues raised in the study the role of commercial bank lending
activities for development of SMEs
Overall, the researchers published uniformity quite large in views relating to
SMEs, the role of SMEs for the development of economy, society, the factors
affecting the credit Banks with SMEs, in which institutional factors, policies,
commercial banks' capacity, and the capacity of the enterprises themselves have

been mentioned. Based on the data collected, the authors have developed
recommendations to help SMEs grow under the support of commercial banks.
However, studies have not shown a specific role of commercial bank loans
for development of SMEs. How does commercial lending impact changes in size,
growth rate, structural change as well as the efficiency of SMEs? Reasons leading
to these effects?, What are the institutional environment, commercial lending
capacity of SMEs and the capital use capacity of SMEs to enhance the positive
impact of commercial lending on SME development? How to enhance the positive
impact of the activities of commercial banks' lending to the development of
SMEs?
The topic of lending activity of commercial joint stock commercial banks
to the development of SMEs in the field of industry and construction (S & T),
which the authors selected for this study, contributes to answer these questions.
1.2. Research Methodology
1.2.1. Research Questions
Understand what is the role of commercial joint stock commercial banks
in SME development?
Reality and role role of commercial bank lending to the development of
SMEs in the field of Industrial & Construction Nghe An province now like?
To strengthen the role of commercial bank lending to the development of
SMEs in the field of Industrial & Construction Nghe An province need to have
what the solution?
1.2.2. Research models
Factors affecting the role of lending include the following components:


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i) Institutional policies;
ii) Endogenous capacity of banks;
iii) Endogenous capacity of the SME sector.

Lending activity of banks consisting of the elements:
i) Loan size;
ii) Interest rate;
iii) Loan terms and conditions
The role (impact) of lending to SME development includes the following
components: i) Scale of scale, speed; ii) Industry structure; iii) Efficiency of
production and business
The research process that answers the questions, assumptions and models
is shown in the following diagram:
Factors affecting the
role of lending
activity
Institutional
policies
Endogenous
capacity of the bank
Endogenous
capacity of the SME
sector

The content
of lending
activities of
JSCB
- Scale
- Interest rate
- Conditions

The
role

of
lending to the
development of
SMEs
- Change the scale,
speed
- Changing the
structure
of
industries
- Improving the
efficiency
of

Criteria evaluate
- The criteria for
factors
affecting
lending operations
role
- The criteria for
lending operations
- The criteria for the
development
of
SMEs

Solutions to enhance the role of lending activity

1.2.3. Data collection method

The study used a combination of the methods of qualitative research and
quantitative research methods.
1.2.3.1. Qualitative research methods
The in-depth interview was used in this study, and in-depth research was
conducted to obtain more analytical data and perspective after analyzing the
quantitative data demonstrating the role of activity loans of joint stock


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commercial banks for the development of small and medium enterprises in the
province of Nghe An.
Specifically, the author consulted 6 experts who are credit officers in two
branches of joint stock commercial banks without state capital in Nghe An
province and 6 representatives are managers of Small and medium enterprises
in the field of industry and construction in Nghe An province.
All objects are selected for interview are those who have knowledge of
the role lending activities of commercial banks shares for the development of
small and medium-sized enterprises in the fields of industry and construction.
However, limitations of the method of in-depth interviews are data obtained
from the survey results bring subjective opinion of objects surveyed, to limit the
weaknesses of this method, researcher chose subjects surveyed who are
responsible for the answers and understand the field of research of the author.
The results of the in-depth interviews gave the graduate students a more
multidimensional perspective on the research and assisted PhD students in the
quantitative analysis of research results based on data collected from journals
report and annual summary of data collected from the survey subjects from
business, banking and government managers.
1.2.3.2. Quantitative research methods
The author intends to interview SMEs operating in the field of industry
and construction in Nghe An province who have or are using credit services of

non-state owned JSCBs through standardized questionnaires.
* Expert advice: The thesis builds the sample survey questionnaire on the
content of the research and consulted 10 experts on the scale of assessing the
lending role of commercial joint stock commercial banks on the development of
SMEs on the basis of that will adjust the scale accordingly
* Research sample: The target group of SMEs in the field of industry and
construction in Nghe An province are using credit services of joint stock
commercial banks without capital from the State.
As noted, the industry and construction sector in Nghe An is currently
2,611 enterprises. Therefore, it is necessary to identify the sample to be
sufficiently analyzed to ensure the accuracy of the information.


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There are many different conceptions of the survey sample. Nunnally and
Burnstein (1994) ssume that the ML (Maximum Likelihood) estimation method
requires a sample size of at least 100-150. According to Hoelter (1983), the
critical sample size must be 200. According to Nguyen Dinh Tho and Nguyen
Mai Trang (2007) the sample size must be at least 4 to 5 times the number of
variables in the questionnaire.
Therefore, with the estimated questionnaire size of 55-60, the sample size
is expected to be 300 questionnaires (of which 20 are non-state-owned joint
stock banks and 100 SMEs and related agencies.)
1.2.3.3. Data collection methods
Secondary data: Authors collected through annual financial statements of
joint stock commercial banks, through the statistics of the State agencies,
magazines, scientific research published.
Primary data: The author conducted a survey, interviews with SME
leaders, questionnaires in form M1 and M2.
1.2.3.4. Data analysis method

Research using descriptive statistical method, comparative analysis
method, the method according to the sequence analysis time ... to perform
analysis in research

CHAPTER 2:
BASIC THEORETICAL AND PRACTICAL EXPERIENCE ON
THE LENDING ROLE OF COMMERCIAL JOINT STOCK BANKS
FOR THE DEVELOPMENT OF SMALL AND MEDIUM
ENTERPRISES
2.1. Small and Medium Enterprises Development and the Need for
Commercial Joint Stock Banks for SME Development
2.1.1. Lending activities of joint stock commercial banks
Lending is a temporary transfer of value from the owner (s) to the user
(borrower), after a certain period of time returns to a value greater than the
initial value. (Nguyen Thi Mui, 2006)


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* Characteristics of lending activity
First, lending must comply with the following principles: i) Loans must
have a purpose; ii) Repayment of principal and interest on time; iii) Loans must
be secured in accordance with regulations
Secondly, the parties involved in the lending business include borrowers,
borrowers and state management agencies
*) Lending activities of joint stock commercial banks
JSB is one of the types of commercial banks but under the ownership of
shareholders,
Commercial banks have existed and developed hundreds of years
associated with the development of commodity economy,
The development of commercial banks has had a great impact on the

development of the commodity economy,
In contrast, the commodity economy has developed strongly to the
highest stage of the market economy. Commercial banks have also become
more and more complete and become financial institutions that are
indispensable.
Lending characteristics of commercial joint stock commercial banks: As
in general lending activities, lending activities of commercial joint stock banks
are a form of credit granting, whereby commercial joint stock banks give
borrowers a sum of money to use for the purpose and time agreement with the
principle of repayment of both principal and interest
2.1.2. Small and medium enterprises in the field of industry and
construction
SMEs in the construction industry are business establishments operating
in the field of construction and business, which are registered in accordance
with the law, divided into three levels: micro, small and medium scale.
Equivalent capital is equal to the total assets defined in the enterprise's balance
sheet) or the average number of employees (total capital is a priority criterion).
2.1.3. The role of lending activities of joint-stock commercial banks for
the development of SMEs in the industrial sector and construction


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2.1.3.1. The concept of the role of lending activities of commercial banks
for the development of SMEs in the field of Industrial & Construction
From the author's point of view, the role of commercial joint stock commercial
banks in SME development is the ability of commercial joint stock banks to
change the development of SMEs in the field of construction & building.Thus,
by allocating money to SMEs in the field of construction and civil engineering,
a sum of money to be used for a certain purpose and time is agreed upon in
principle with the repayment of both principal and interest, lending activities of

commercial joint stock banks have transformed and promoted the development
of SMEs. SMEs in the field of construction and industrial works have more
capital to expand production scale, change technology and technology, renovate
product models, improve management and technical level, skills of
workers;thereby, improve product quality, production cost savings, lower costs
improve the efficiency of their manufacturing business. That's it shown the role
of commercial bank lending for the development of business
2.1.3.2. Characteristics of lending activities of commercial joint stock
commercial banks for SME development in the field of construction and civil
engineering
First, lending reflects the relationship between the lender, the borrower
and the society
Secondly, borrowers are SMEswith the scale of small loans, the ability of
business management is limited, in order to carry out their role, the joint stock
commercial banks must link the loans with the manual and loan control.
Thirdly, the borrowers are enterprises operating in the field of
construction and business, so the commercial banks' lending activities must pay
attention to loans for renewing production technologies, renovating the product
designs and raising the managerial skills and labor qualification of enterprise.
The content and factors affecting the role of commercial bank lending to the
development of SMEs in the field of industry and construction
2.2.1. The content of active lending role of joint-stock commercial banks
for the development of SMEs in the industrial sector and construction
The role of commercial bank in lending and changing the size and growth


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of SMEs in the field of industry & construction
The role of commercial joint stock lending in changing SME structure in
the field of industry & construction

The role of commercial joint stock banks in raising the quality and
efficiency of production and business of SMEs in the field of construction and
industry.
2.2.2. Factors affecting the role of commercial bank lending to the
development of SMEs in the field of industry and construction
Institutional environment for commercial bank lending shares,
Lending capacity of JSCBs, the loan use capacity of SMEs
2.3. Experience the role of commercial bank lending activity for the
development of SMEs in the field of Industrial & Construction in some
localities and lessons for Nghe An
Research presented the lessons of some banks in the world, which refers
to the lessons learned by the Bank of Taiwan, South Korea's experience. In
addition, the research also presents practical experience of the role of lending
activities of some commercial banks shares for developing small and mediumsized enterprises in the fields of industry and construction in one some
Vietnam's local as Ho Chi Minh City, Quang Binh province. Based on the
analysis of the achievements, constraints and solutions that commercial banks
in the world as well as localities in Vietnam have applied to draw lessons for
the province of Nghe An to promote the role of lending activities of joint-stock
commercial banks for the development of SMEs in the fields of industry and
construction in Nghe An province.

CHAPTER 3:
SITUATION OF LENDING ACTIVITIES OF COMMERCIAL JOINT
STOCK COMMERCIAL BANKS FOR DEVELOPMENT OF SMALL
AND MEDIUM ENTERPRISES IN THE FIELD OF INDUSTRY AND
CONSTRUCTION IN NGHE AN PROVINCE.


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3.1.1. The development of SMEs in the field of Industrial &

Construction in the Nghe An Province
The number of enterprises in the field of industry and construction in the
province of Nghe An tends to increase over the years in the research period, the
increase in both quantity and quality of enterprises' activities has reflected
accurately through their contribution to the overall economic development of
the locality. The number of SMEs in the field of industry and construction in
Nghe An province increased from 36.25% to 38.29% of the total number of
SMEs in the province. Among SMEs in the industrial and construction sector,
SMEs in manufacturing accounted for 38.72% of SMEs in the industrial and
construction sectors in 2011 and the number of enterprises has increased to
41.47% and accounted for in 2016; With businesses in the construction sector
accounted for 61.28% of small and medium-sized enterprises in the fields of
industry and construction in 2011 and the number of businesses tend to
decrease and accounted for 58.53% only 2016.
3.1.2. Situation of lending activities of JSCBs in Nghe An province
The mobilized capital of commercial joint stock banks is likely to
increase in the period from 2012 to 2016, in 2015 and 2016, the number of
mobilized capital will be increased by the joint stock commercial banks and
banks public joint stock commercial, the addition of two branches in Nghe An
of these two banks also facilitates the expansion of access to small and medium
enterprises in the field of industry and construction in Nghe An province.
3.1.3. Overview of the development of SMEs in the field of construction
and industrial production and the role of lending activities of joint stock
commercial banks in Nghe An province.
Firstly, in terms of loan size: Scale lending by commercial banks shares
with SMEs in the fields of industry and construction in the province of Nghe
An is relatively large, the number of SME clients is about 11% to 12% of the
total number of clients (the largest is individual clients with about 80% of
clients). In which the number of SMEs in the industrial sector and construction
are customers of the joint-stock commercial banks account for about 3 to 4.5%

of customers are SMEs.


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The trend of commercial joint-stock banks for SMEs in the industrial and
construction sectors has increased over the years in the research period.
The trend of commercial joint-stock banks for SMEs in the industrial and
construction sectors has increased over the years in the research period.
Second, the cost of the loan:
The cost of loans under assessment by enterprises is still relatively high,
especially for SMEs in the field of industry and construction, which are
characterized by large capital investment, time of capital recovery. relatively
longer than other firms operating in the service sector, ...Thus, the return of
capital and payment of interest, the costs incurred for the process of borrowing
from commercial joint stock banks of these enterprises is still relatively difficult
Thirdly, on the lending business: The appraisal of production and
business plans as well as the implementation of loan procedures for SME
clients in the industrial and construction sectors are also emotional cases. It also
affects the borrowing activities of enterprises
Fourthly, on loan conditions: Loan conditions are stipulated for each
bank. However, from the point of view of some selected enterprises, the
conditions of the collateral as well as loan regulations are relatively difficult for
businesses. From the point of view of banks - they also carry out business
operations; their goal is to seek profits and also to secure their loans,
From the point of view of banks, enterprises can not borrow capital from banks
because of weak financial capacity of enterprises; investment plans of
enterprises have not met the requirements. From the point of view of banks they also carry out business operations; their goal is to seek profits and also to
secure their loans,
From the point of view of banks, enterprises can not borrow capital from banks
because of weak financial capacity of enterprises; investment plans of

enterprises have not met the requirements.
3.2.1. An analysis of the real situation of lending role of commercial
joint stock commercial banks in developing the scale and speed of SME
development in the field of construction and industrialization in Nghe An
province.


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About changing the size of SMEs in the fields of industry and
construction: the average capital scale of these enterprises have tended to
increase during the period studied (2012-2015), while in 2012 the average
amount of capital by enterprises is 17.6 billion by 2015, the average amount of
capital of SMEs rose to 21.38 billion (an increase of about 4.2 billion on
average per enterprise)
Similarly, the average production value of SMEs in the industrial and
construction sectors also tends to increase over the study period. In 2012, the
average production value per enterprise in this sector is about 19.82 billion and
then increased by 6.85 billion on average to 26.67 billion in 2015, the average
annual growth rate is about 9 to 11% per year, which is a good sign for the
development of enterprises in production and business activities with no
significant impact from the capital SME loans in the field of industry and
construction.
3.2.2. Reality and role of commercial bank lending for the restructuring
of SMEs in Industrial & Construction sectors in the province of Nghe An
The research results of the author shows that the total number of SMEs in
the industrial sector and construction has gradually increased over the years: in
2012 the number of enterprises in this field is 2253 now, 2015 increased were
2813 enterprises, an increase of 24.85%
Regarding the structure of 2813 enterprises in the field of construction
industry in Nghe An province, the proportion of small enterprises in the

construction industry tend to decrease from 91.66% in 2012 to 88.8% 2015
The structure of the SME sector in the province has relative stability, the
industry accounted for nearly 41%, and the sector accounted for about 59% of
the construction
Regarding the structure of technical level: of SMEs in the field of
industry and construction in Nghe An province is mainly technical level at
medium level. However, there are variations according to the trend in
percentage of qualified enterprises relatively modern and contemporary,
reducing the proportion of enterprises with average skill and backward.
Specifically, in 2012 the proportion of enterprises with the modern level is


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2.2%, and then by 2015 the proportion of modern enterprises was 5.2% in the
total number of SMEs in this sector.
3.2.3. Analyze the situation, the role of commercial bank lending and its
impact to change the quality and efficiency of production and business
activities of SMEs in the field of Industrial & Construction in the province of
Nghe An
The increase of outstanding loans of commercial joint stock banks has
contributed to reduce the capital difficulties for enterprises, the average salary
paid to their labor is also relatively high and also tends to increase in the
research period when the salary paid by the company in 2013 is 5618 million,
the figure in 2015 is 5745 million.The impact of lending activities of joint stock
commercial banks on the improvement of the quality and efficiency of
production and business activities of SMEs in the industrial and construction
sectors is high and high, in other words they said that commercial banks'
lending activities of major importance to improve the quality and efficiency of
production and business of enterprises, the average score of 3.63 to 4.36 range
from the average point score rated as 5 points.

3.2.4. A general assessment of the role of commercial banks in the
development of small and medium enterprises in the field of industry and
construction in Nghe An province.
3.2.4.1. Impacts on the development of SMEs in the industrial and
construction sector
First of all, the lending activity of JSCBs increasingly contributes to
securing capital for SMEs in the industrial and construction sectors.Second,
thanks to loans of commercial banks; SMEs in the field of Industrial &
Construction conditional improve the results of production and business
activities
3.2.4.2. Impacts on the JSBs themselves when lending to SMEs in the field
of industry and construction.


19
The author's survey shows that in the years 2012-2015, the percentage of
outstanding loans to customers are SMEs in BIDV's tendency to decrease
slightly from 26.39% to 25.96%; The ratio of short-term loans from 30.15% to
28.14%; Long-term loans from 58.36% to 26.95%. Overdue loans of SMEs are
from SMEs, from 30.82% in 2013 to 55.11% in 2015; the ratio of nonperforming loans of SMEs is from SMEs 0.73% in 2014 to 0.6% in 2015.
3.2.4.3. Implications for socio-economic development of Nghe An when
joint stock commercial banks for construction and SMEs
Table 3.21: Some indicators of lending activity of commercial joint
stock commercial banks to SMEs in Nghe An province and socio-economic
development of Nghe An province
Contents

2012

2013

2014

2015

2016

28.284

35.888

44.088

51.383

56.213

59.812

51.078

54.566

58.282

58.606,9

13.266

11.138

12.551

13.326

14.579

6.251

6.890

7.250

7.695

8.406

4.1 Number of SMEs in the province

6198

6839

7.199

7.641

8.345

4.2.So of SMEs in Industrial &

Construction

2.253

2.292

2.611

2.813

3.195

162.854

175.072

178.885

190.661

203.500

67.590

68.760

78.330

95.642

108.630

21,22

22,96

26

29

28,54

19,35

17.38

14.4

12.3

10.4

1. Debts of commercial joint stock
commercial banks up to December 31
every year VND billion
2. 2. Total products in the province (GRDP)
Billion
3.3. Value of manufacturing and
processing VND billion
4. Number of enterprises in the

province

5. Number of employees working in
enterprises
In which the number of employees
working in SMEs in Industrial &
Construction
6.

Average

income

(Million VND)
7. Poverty rate (%)

per

capita

Source: Statistical Office of Nghe An province

The number of enterprises in Nghe An province is likely to increase
in the research period, in which the number of enterprises in the province
in 2012 is 6215 by 2016. province about 8406 enterprises. Along with that
trend of the province, the relatively strong increase of small and medium


20

enterprises in the field of industry and construction, in 2012 the number of
these enterprises around 2253 enterprises increased to 3195 enterprises in
2016. The number of small and medium enterprises in the industry and
construction sector accounts for a relatively large proportion of the total
number of enterprises in the province (about 37.76% of the total number of
enterprises in 2016).The rapid increase in both quantity and quality of
enterprises is supported by relatively large loans from commercial joint
stock banks.
Loans from commercial joint stock banks have contributed to
increasing production value, creating more jobs, increasing income of
laborers, contributing to the state budget, thus contributing to solving the
socio-economic problems of the province. However, with the small size of
loans, the short time of borrowing, the complexity of lending conditions,
the role of commercial joint stock commercial banks in SMEs has limited
contribution to socio-economic development. of Nghe An province. This is
reflected in the low labor productivity in the province (the value of
industrial production / labor is 14579 billion / 172975 labor = 84.28
million / year / labor), income Average per capita is not high (28.54
million dong / 12 months = 2, 378 million dong / person / month).
3.3. Cause limiting the role of commercial bank lending activity
for the development of SMEs in the field of Industrial & Construction
Nghe An province today
The causes are related to the institutional environment and the level
of socio-economic development in the locality
Causes related to lending capacity of JSCBs: The scale of lending is
still small due to the limited ability to mobilize capital, the high cost of
lending, the lack of loans, the regulations and conditions of lending have
not created conditions for SMEs to access loans. The limited capacity and
organizational structure of the Bank's staff are limited, and commercial

21

banks face many difficulties in accessing loans from SMEs in the field of
construction and civil engineering in Nghe An province.
CHAPTER 4:
DIRECTIONS AND SOLUTIONS TO ENHANCE THE ROLE OF
COMMERCIAL JOINT STOCK COMMERCIAL BANKS IN THE
DEVELOPMENT OF SMALL AND MEDIUM ENTERPRISES IN THE
FIELD OF INDUSTRY AND CONSTRUCTION IN NGHE AN
PROVINCE IN THE COMING YEARS.
4.1. Background and directions to enhance the role of commercial
joint stock banks lending to SME development in the field of industry and
construction in Nghe An province in the coming years.
4.2. Some major solutions
4.2.1. Improve the institutional environment
The purpose of lending is to invest in additional capital for customers to
meet the needs of production and business. However, in order to expand the
credit of joint stock commercial banks to SMEs in the field Industrial and
construction successfully, one of the issues is concerned that lending should be
implemented in accordance with the process, not ignore, do not shut special
attention to the project evaluation to have the best customer reviews.
4.2.2. Improving the capacity of commercial joint stock banks
One of the reasons SMEs in the field of industry and construction in Nghe
An province find it difficult to access loans from joint stock commercial banks
due to the difficulty of banks capital for lending activities therefore, the
improvement of lending capacity of commercial joint stock banks is necessary.
In order to improve the lending capacity of commercial joint stock banks,
some solutions are given as follows: To increase the lending capital of joint
stock commercial banks

Reduce loan costs and longer loan periods for SMEs in Industrial &
Construction
Improve the lending business of JSCB


22
Strengthen the inspection of the use of borrowed funds
Improve the quality of credit human resources in relation to SMEs in the
field of industry and construction through training, recruitment
4.2.3. Solutions on reducing bad debts and dealing with bad debts for
joint stock commercial banks
Reducing and dealing with bad debt is one of the solutions that are of
interest and importance to banks in order to increase the lending capacity of
joint stock banks without state capital, to control and dealing with bad debts of
banks, some solutions are proposed as follows:
First, strictly observe the lending process, regularly updated information
on the client, perform the correct term debt, accordance with the production
cycle of the customer business, performing the assessment, classification of
debt to orient the level of risk and must be done immediately when the loan is
considered, good grading, customer ratings, inspection and supervision after the
loan.
Secondly, diversification of banking products and services should be
diversified
Thirdly, it is necessary to improve professional qualifications and quality
education for staff directly working in the field of corporate credit.
Fourth, continue to actively monitor and recover principal and interest:
Once the loan has been disbursed, the staff who directly performs the work
related to the bank's lending activities should be responsible for periodically
checking the repayment, urge the repayment of overdue debt as planned
repayment without adjustment

In addition, also need to strengthen and maintain the inspection, thematic
monitoring of lending activities: Regularly check the compliance of lending
procedures and procedures, promptly detect the existence, breach and gaps in
lending activities in order to work out appropriate remedial measures.
4.2.4. Improve access to and use of SME loans in the industrial and
construction sector
First, improve the ability of SMEs to access loans in industry and
construction


23
Second, raise the capacity of small and medium enterprises to use loans in
the field of industry and construction
4.3. Some recommendations
CONCLUSION
With the theme "The role of lending activities of joint-stock commercial
banks for the development of small and medium-sized enterprises" thesis tackle
the following issues: Based on a review of the research related to the topic of
the thesis, the author has systematized the theoretical and practical basis for the
role of commercial joint stock commercial banks in the development of SMEs
in the industrial sector and construction, the experience drawn from Nghe An
province comes from the local reality, the countries in the world.
From secondary data collected from published research, the province's
final report and survey data of the author in 100 enterprises, 17 joint stock
commercial banks and 180 state management officers and enterprises at all
levels in Nghe An, authors used a statistical analysis method description for the
role of commercial bank lending activity for the development of SMEs in the
field of Industrial & Construction in terms of changes in the size, speed,
restructuring production and contribute to improving the production efficiency
of the enterprise business, although it is low impact.Stemming from these

limitations in activities of commercial bank lending to SMEs in the field of T &
XD and causes of these limitations,
The thesis proposes the direction and solutions to enhance the role of
commercial banks in the development of SMEs in the field of construction and
civil engineering in Nghe An province in the coming years.
Toward the direction, in order to enhance the role and effectiveness of
commercial banks' lending to the development of SMEs in the industrialized
and construction sector, when considering capital requirements of the
enterprise, both banks and enterprises need to pay attention to the demand for
loans for direct expansion of production scale, as well as demand for loans to
improve the management capacity of managers and leaders qualified
employees; To prioritize loans for renewing production techniques, developing
new professions, applying modern and environmentally friendly eco-


24
technologies. First of all, the institutional environment should be improved,
ensuring transparency in regulations on lending activities, lending procedures,
loan regulations of SMEs with joint stock commercial banks; between
commercial banks to state banks, the management bodies of the government
and local authorities, there should be a coordination mechanism to manage
lending activity is the conditions, the administrative procedures to resolve
support support loans with preferential interest rates.
To improve lending, commercial banks need to take measures to
strengthen equity through the issuance of shares and capital accumulation from
profits; diversify products and services raise capital; To enhance cooperation
with labor-intensive enterprises, non-business administrative units ...to provide
products and services; Reduce loan costs and increase loan extension time for
enterprises; improve the lending business of the JSCB; strengthen the
inspection of the use of the borrower's loans; Improve the quality of human

resources through the training, recruitment and appointment of bank managers
At the same time, in order to improve access to capital, SMEs in industry
and construction should take more responsibility for loans from joint stock
commercial banks; It is necessary to renovate the financial management as well
as to improve the capacity of using and managing the loans of the joint stock
commercial banks, taking care to improve the skills and professional level for
managers and employees of the enterprise .To implement that direction and
solution, The dissertation also recommends to the State Bank and People's
Committee of Nghe An province with their responsibilities and powers in the
forms, measures to support the lending activities of commercial banks for the
development of small and medium enterprises in the field of industry and
construction in the most effective way.