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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

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

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

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

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.

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

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

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

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 &

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

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.


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

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


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


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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

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


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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

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.