THE EFFECT OF SOME ECONOMIC VARIABLES ON CREDIT FACILITY OBTAINED BY SMALL AND MEDIUM ENTERPRISES IN VIETNAM

The paper investigates some microeconomic variables as interest, exchange and inflation rates on credit facility obtained by small and medium enterprises (SMEs) in Vietnam. The study employs ex post facto research design. Data were extracted from the State Bank of Vietnam statistics from 1995 to 2019. The empirical results find that a significant relationship exists between the three independent variables in question and the dependent variable-credit facility. Therefore, the government should work and bring in policies that will reduce the rates of interest, exchange and inflation in the country so as to help SMEs to grow.