[STBI-12-01-2017] Gender difference in access to finance: Does it matter in Vietnamese Small and Medium enterprises?

Presenter: Le Hoang Long (Banking Univeristy)
Time: 11am, 12-01-2017
Hall: 1A Hoang Dieu. Phu Nhuan Street. HCM city


The ZINB regression model is applied in this research to examine determinant factors regarding the number of denying on formal credit applications. The findings indicate that female enterprises encounter higher likelihood to be denied compared with male enterprises. Indeed, gender bias is different regarding industry specifics. In particular, female enterprises face no more financial constraints than male enterprises in Food & Beverage, and Apparel industries where female are dominant, but they experience more denied times than male in Wood, Metal product, Electronics, Rubber and Plastics where there exists smaller share of female labors and female leaders. Apart from industry specifics, the change in the monetary policy results in the increase of gender bias after the recession. Although there are no differences in finance access before the recession in 2008, female enterprises face higher possibility to be denied than male firms after this period as a result of the stricter monetary policy. Also, firm size becomes one of the determinant factors for finance access whereas there is no discrimination between female and male enterprises for micro-sized firms, discrimination does exist in small and medium sized firms. The findings from this study become an important framework for policy suggestions which are expected to improve the credit accessibility of female enterprises. Two effective solutions should be practiced such as enhancing non-collateral credit, reducing the discrimination among regions.


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