Weak collateral
One of the most common reasons businesses struggle to access bank loans is a lack of collateral. According to bank regulations, loans typically require businesses to provide collateral to secure the loan.
However, many small businesses, especially startups, lack sufficient fixed assets or high-value assets to use as collateral for bank loans. This presents a significant challenge.
Besides financial statements and production plans, collateral is considered a prerequisite for banks to prioritize loan applications.
Lam Dong currently has 27,000 private enterprises. Of these, the number of businesses that have borrowed capital from credit institutions is still limited. For example, in the mountainous region of Lam Dong, out of a total of 4,700 operating businesses, only about 900 have borrowed capital from commercial banks.
Most businesses operate in the agricultural sector. The collateral assets of these businesses are not always readily available or of high value.
The director of a commercial bank in Lam Dong province believes that assets are a necessary condition to increase the credibility and borrowing capacity of customers.
However, most of the collateral used for business loans in the province is secured by third-party assets such as business owners, relatives, or related parties.
Some have collateral assets such as factories and perennial orchards, but they have not yet been granted ownership rights. "The collateral mostly only includes land use rights, with no assets on the land. This makes it very difficult for banks to determine the value of the collateral," this director stated.
Regarding collateral, Mr. Dinh Van Tung - Director of Thien An One-Member Limited Company, Kien Duc commune, shared: "The assets of a business are an essential factor for banks to consider when granting loans."
However, the rate of collateralized loans at credit institutions in Lam Dong province remains quite low. This results in businesses rarely achieving their expected loan limits.”
In addition to secured loans, unsecured loans are now being offered to facilitate access to capital for businesses. However, this is difficult to implement because businesses do not yet meet the creditworthiness requirements for borrowing.
According to credit institutions in the province, the recent drop in real estate prices and changes in planning have impacted the collateral assets of businesses. Some real estate businesses operating under the guise of agricultural production and trading companies have also been affected.
Along with the issue of collateral, the current production and business plans of enterprises still have many shortcomings. This is considered the biggest obstacle to building credibility with credit institutions.
Most businesses in Lam Dong province have leaders and managers with limited qualifications. Their ability to grasp information, seize opportunities, forecast and respond to market developments, and develop business strategies is weak. Consequently, their production and business plans lack feasibility.
Credit institutions remain cautious.
According to the State Bank of Vietnam, Region 10, credit institutions in the area are still hesitant to lend to businesses, especially for medium and long-term projects. The reasons are concerns about risks, difficulties in debt collection, and increasing bad debts.
A small number of businesses with good credit ratings and viable production and business plans are often sought after by credit institutions outside the province. In these cases, local credit institutions find it difficult to compete in lending policies due to pressure on interest rates.
Currently, the policy autonomy of banks in Lam Dong province is low. Most of the business lending policies being implemented depend on the head office at the central level. Meanwhile, Lam Dong province has its own unique characteristics, and the businesses operating there also have specific characteristics.
Local banks remain passive and lack sufficient voice in advising on the implementation of specific policies for businesses in the province.
Furthermore, since these banks are all branches of the head office, their lending conditions and policies must comply with the general criteria stipulated by the head office. Their ability to independently secure sufficient capital to meet the funding needs of the economy in general and businesses in particular remains low.
"Locally mobilized capital accounts for only over 41.98% of total outstanding loans. Commercial banks still have to receive capital adjustments from their head offices at a relatively high cost, affecting their ability to reduce lending interest rates and implement preferential credit packages for businesses," said Pham Thanh Tinh, Deputy Director of the State Bank of Vietnam Region 10, in charge of the Dak Nong Satellite Branch.
Furthermore, loan approval processes and policies at banks are often complex and time-consuming. From collecting documents and evaluating collateral to assessing financial capacity and approving loans, each step requires numerous procedures and paperwork. This discourages many businesses from meeting bank requirements, especially when they urgently need capital to meet business needs.
Discussing the difficulties in accessing capital, Mr. Nguyen Kha, Director of Dai Dung Joint Stock Company in Cu Jut commune, said that the company's total investment is over hundreds of billions of VND.
However, the company has to borrow capital from credit institutions outside the province. "We want the local authorities to create favorable conditions so we can access bank loans. Because in the current difficult economic climate, it's impossible for businesses to invest 100% of their own capital," Mr. Kha affirmed.
As of the end of August 2025, the total outstanding loan balance for the entire economy in Lam Dong province was 353,000 billion VND. Of this, short-term loans accounted for 251,000 billion VND, and medium- and long-term loans accounted for 103,000 billion VND.
Source: https://baolamdong.vn/vi-sao-doanh-nghiep-lam-dong-kho-vay-von-tu-cac-to-chuc-tin-dung-389856.html
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