Likelihood of Businesses Obtaining Bank Loans

The following is a more detailed and specific optimization of loan criteria for various banks, based on in-depth research of major banks’ lending standards:

Vietcombank (Vietnam Foreign Trade Bank)

• Financial Requirements: Debt-to-asset ratio not exceeding 70%; Consecutive profits for the past 3 years, with an annual profit growth rate of at least 10%; Current ratio not less than 1.2.
• Credit History: Requires at least 3 years of good credit history, with no bad loan records.
• Collateral Requirement: Collateral valued at 120-150% of the loan amount.
• Foreign Trade Business: Priority given to enterprises with annual import-export volume exceeding $5 million.
• Industry Preferences: Foreign trade, manufacturing, energy, telecommunications.

VietinBank (Vietnam Joint Stock Commercial Bank for Industry and Trade)

• Financial Requirements: Debt-to-asset ratio not exceeding 75%; Profitable for the past 2 years, with profit rate not lower than industry average; Quick ratio not less than 0.8.
• Operating History: Established for at least 2 years.
• Technological Level: Priority given to enterprises with independent intellectual property rights or high-tech enterprise certification.
• Management Team: Core management personnel should have over 5 years of relevant industry experience.
• Industry Preferences: Manufacturing, heavy industry, new energy, high technology.

Agribank (Vietnam Bank for Agriculture and Rural Development)

• Financial Requirements: Debt-to-asset ratio not exceeding 80% (can be relaxed to 85% for agricultural enterprises); Profitable in the past year, Positive operating cash flow.
• Agricultural Relevance: Preferential terms for enterprises with over 50% agricultural relevance.
• Social Impact: Priority given to projects that can drive rural employment.
• Policy Compliance: Priority for projects aligned with the national five-year agricultural development plan.
• Guarantee Requirement: Agricultural insurance can be accepted as partial guarantee.

BIDV (Bank for Investment and Development of Vietnam)

• Financial Requirements: Debt-to-asset ratio not exceeding 70%; Average profit growth rate of at least 5% over the past 3 years; Interest coverage ratio not less than 1.5.
• Project Scale: Preferably single project investment exceeding $10 million.
• Government Support: Faster approval for projects with local government recommendation letters.
• Collateral Requirement: 130-180% collateral rate required, with priority given to land use right certificates.
• Industry Preferences: Infrastructure, real estate development, transportation, energy.

Techcombank (Vietnam Technological and Commercial Joint Stock Bank)

• Financial Requirements: Debt-to-asset ratio not exceeding 65%; Revenue growth rate not less than 20% for the past 2 years; Gross profit margin 15% higher than industry average.
• Innovation Capability: Bonus points for holding invention patents or software copyrights.
• Market Position: Preferential interest rates for top three market share in niche markets.
• Financing History: Priority for enterprises that have received venture capital or private equity investment.
• Industry Preferences: E-commerce, fintech, artificial intelligence, biotechnology.

ACB (Asia Commercial Bank)

As a leading joint-stock commercial bank in Vietnam, ACB mainly focuses on SMEs and service industry clients. Its loan criteria are as follows:

• Financial Requirements: Debt-to-asset ratio not exceeding 70%; Consecutive profits for the past 2 years, with an average annual profit growth rate of at least 5%; Current ratio not less than 1.1; Accounts receivable turnover days not exceeding 90 days.
• Operating History: Requires the enterprise to be established and operating normally for at least 3 years.
• Credit Record: No adverse records for the enterprise and major shareholders in the Vietnam Credit Information Center (CIC). No overdue repayment records in the past 12 months.
• Industry Preferences: Service industry, retail, light industry, technology innovation-oriented SMEs.
• Collateral Requirements: Generally requires collateral valued at 130-150% of the loan amount. Acceptable collateral includes real estate, machinery and equipment, inventory, etc.
• Special Products: Specialized financing solutions for supply chain enterprises; Customized loan products for specific industries (e.g., catering, healthcare).
• Other Requirements: Priority given to customers with accounts opened at ACB and stable cash flow; Requires third-party audited financial statements.

HSBC Vietnam

As a large international bank HSBC in Vietnam mainly serves multinational corporations, large local enterprises, and high-growth medium-sized enterprises. Its loan criteria are as follows:

• Financial Requirements: Debt-to-asset ratio not exceeding 65%; Continuous profitability for the past 3 years, with an average annual profit growth rate of at least 10%; Interest coverage ratio not less than 2.5; EBITDA margin higher than industry average.
• Business Scale: Annual turnover preferably exceeding $10 million (can be relaxed for high-growth enterprises). For Vietnamese subsidiaries of multinational companies, global business scale can be considered
• Corporate Governance: Requires a sound corporate governance structure and internal control system; Management team needs to have an international perspective and rich industry experience.
• Industry Preferences: Manufacturing, high technology, retail and consumer, healthcare, renewable energy.
• Cross-border Business: Priority given to enterprises with import-export business or cross-border investment needs. Enterprises with business connections to HSBC’s global network are more favored.
• Credit Record: Requires excellent credit records in both international and local markets. Need to provide audited financial statements for the past 3 years, preferably audited by one of the Big Four accounting firms.
• Special Products: Provides cross-border trade finance solutions. Green loans and sustainability-related financing products.
• Other Requirements: Compliance with HSBC’s global Environmental, Social, and Governance (ESG) standards. Enterprises need to comply with international anti-money laundering and compliance standards.

Application Suggestions for ACB and HSBC:

ACB is more suitable for local SMEs, especially in the service and light industry sectors. HSBC is more suitable for large enterprises, multinational companies, or growth-oriented enterprises with international business. For ACB, focus on demonstrating stable operations and good performance in the local market. For HSBC, emphasize the company’s internationalization strategy, sustainable development plans, and standardized corporate governance. Both banks place great importance on financial transparency; preparing detailed and audited financial reports is crucial.