INSTITUTIONAL BARRIERS AND LEGAL PATHWAYS TO CAPITAL MOBILIZATION: A STUDY OF VIETNAM'S PRIVATE ENTERPRISE FINANCING FRAMEWORK
DOI:
https://doi.org/10.18623/rvd.v23.5349Keywords:
Capital Access, Private Enterprises, Legal Framework, Financial Regulation, SMEs, VietnamAbstract
The private enterprise (PE) sector plays a key role in job creation and the growth of Vietnam's economy. Despite their strategic importance, PE businesses and small and medium-sized enterprises (SMEs) face challenges in accessing formal funding, limiting their potential. This article provides an in-depth analysis of the Vietnamese legal framework that governs PEs' access to capital. The study focuses on systemic inadequacies across four key areas that constitute major barriers: collateral regulation, credit procedures, information transparency requirements, and dispute resolution mechanisms. By examining specific legal tools and implementing them, the study identifies systemic barriers that affect the effective allocation of capital. Based on this analysis, the paper proposes a number of regulatory reforms to promote a more synchronous, transparent, and conducive financial ecosystem. These recommendations aim to unlock capital for PEs, thereby enhancing competitiveness and promoting sustainable economic development in Vietnam.
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