SME financing role in developing business environment and economic growth: empirical evidences from technical SMEs in Vietnam.
| Title: | SME financing role in developing business environment and economic growth: empirical evidences from technical SMEs in Vietnam. |
|---|---|
| Authors: | Van Song N; Viet Nam National University of Agriculture (VNUA), Ha Noi, Vietnam.; Mai TTH; Vinh University (VU), Vinh City, Vietnam. hoangmaikkt@gmail.com.; Thuan TD; Dong Nai Technology University (DNTU), Bien Hoa City, Vietnam.; Van Tien D; Ha Noi University of Business and Technology (HUBT), Ha Noi, Vietnam.; Phuong NTM; Vinh University (VU), Vinh City, Vietnam.; Van Ha T; National Academy of Education and Management (NAEM), Ha Noi, Vietnam.; Que ND; National Academy of Public Administration (NAPA), Ha Noi, Vietnam.; Uan TB; Dien Bien Technical Economic College, Dien Bien, Vietnam. |
| Source: | Environmental science and pollution research international [Environ Sci Pollut Res Int] 2022 Jul; Vol. 29 (35), pp. 53540-53552. Date of Electronic Publication: 2022 Mar 14. |
| Publication Type: | Journal Article; Retracted Publication |
| Language: | English |
| Journal Info: | Publisher: Springer Country of Publication: Germany NLM ID: 9441769 Publication Model: Print-Electronic Cited Medium: Internet ISSN: 1614-7499 (Electronic) Linking ISSN: 09441344 NLM ISO Abbreviation: Environ Sci Pollut Res Int Subsets: MEDLINE |
| Imprint Name(s): | Publication: : Berlin : Springer; Original Publication: Landsberg, Germany : Ecomed |
| MeSH Terms: | Commerce* ; Economic Development*; Industry ; Vietnam |
| Abstract: | Distinguishing the significance of business environments for technical small and medium-sized enterprises (SMEs), this study examines the connection between business environments, GDP growth, and SMEs' financing choices in Vietnam. The study considered the agency theory as a theoretical base to explain how information asymmetry between SMEs and lenders influences SMEs' financing choices and encompasses the effects on business environment and GDP growth of Vietnam. For this binary logistic regression, text is applied. Global Entrepreneurship Monitor and World Bank data were analyzed. The findings of the study are robust and showed that SME financing (e.g., formal and informal) under the financial infrastructure and tax regulation may enhance formal credit choice and reduce informal credit choice. This enhances the depth in the business environment of technical SMEs and found significant effects on GDP growth. For the first time, this research examines the impact of information asymmetry and agency theory on restaurant financing choices. The research has significance for industry practitioners and governments interested in SMEs' financial viability. On the recent topicality, study also presents policy implications for key stakeholders.; (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.) |
| Comments: | Retraction in: Environ Sci Pollut Res Int. 2024 Jul;31(33):46134. doi: 10.1007/s11356-024-34326-2.. (PMID: 38981970) |
| References: | Agyekum EB, Amjad F, Mohsin M, Ansah MNS (2021) A bird’s eye view of Ghana’s renewable energy sector environment: a multi-criteria decision-making approach. Util Policy. https://doi.org/10.1016/j.jup.2021.101219.; Alemzero DA, Iqbal N, Iqbal S et al (2020a) Assessing the perceived impact of exploration and production of hydrocarbons on households perspective of environmental regulation in Ghana. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-020-10880-3.; Alemzero DA, Sun H, Mohsin M et al (2020b) Assessing energy security in Africa based on multi-dimensional approach of principal composite analysis. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-020-10554-0.; Angrist JD, Pischke J-S (2019) Chapter 6. Getting a little jumpy: regression discontinuity designs. In: Mostly harmless econometrics.; Anwar A, Siddique M, Dogan E, Sharif A (2021) The moderating role of renewable and non-renewable energy in environment-income nexus for ASEAN countries: evidence from Method of Moments Quantile Regression. Renew Energy. https://doi.org/10.1016/j.renene.2020.09.128.; Baloch ZA, Tan Q, Iqbal N et al (2020) Trilemma assessment of energy intensity, efficiency, and environmental index: evidence from BRICS countries. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-020-09578-3.; Bashir MF, Ma B, Shahbaz M et al (2021) Unveiling the heterogeneous impacts of environmental taxes on energy consumption and energy intensity: empirical evidence from OECD countries. Energy. https://doi.org/10.1016/j.energy.2021.120366.; Bui DT, Nguyen HH, Ngo VM (2021) Financial leverage and performance of smes in vietnam: evidence from the post-crisis period. Econ Bus Lett. 10.17811/ebl.10.3.2021.229-239.; Chau NT, Deng H, Tay R (2020) Critical determinants for mobile commerce adoption in Vietnamese small and medium-sized enterprises. J Mark Manag. https://doi.org/10.1080/0267257X.2020.1719187.; Chetverikov D, Larsen B, Palmer C (2016) IV quantile regression for group-level treatments, with an application to the distributional effects of trade. Econometrica. https://doi.org/10.3982/ecta12121.; Chien F, Ananzeh M, Mirza F, Bakar A, Vu HM, Ngo TQ (2021a) The effects of green growth, environmental-related tax, and eco-innovation towards carbon neutrality target in the US economy. J Environ Manag. https://doi.org/10.1016/j.jenvman.2021.113633.; Chien F, Pantamee AA, Hussain MS et al (2021b) Nexus between financial innovation and bankruptcy: evidence from information, communication and technology (ict) sector. Singapore Econ Rev. https://doi.org/10.1142/S0217590821500181.; Chien F, Sadiq M, Kamran HW, Nawaz MA, Hussain MS, Raza M (2021c) Co-movement of energy prices and stock market return: environmental wavelet nexus of COVID-19 pandemic from the USA, Europe, and China. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-12938-2.; Chien F, Ngo QT, Hsu CC, Chau KY, Iram R (2021d) Assessing the mechanism of barriers towards green finance and public spending in small and medium enterprises from developed countries. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-14907-1.; Chien F, Sadiq M, Nawaz MA, Hussain MS, Tran TD, Le Thanh T (2021e) A step toward reducing air pollution in top Asian economies: the role of green energy, eco-innovation, and environmental taxes. Journal of environmental management. https://doi.org/10.1016/j.jenvman.2021.113420.; Chien F, Zhang Y, Sadiq M, Hsu CC (2021f) Financing for energy efficiency solutions to mitigate opportunity cost of coal consumption: an empirical analysis of Chinese industries. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-15701-9.; Cong LC, Thu DA (2021) The competitiveness of small and medium enterprises in the tourism sector: the role of leadership competencies. J Econ Dev. https://doi.org/10.1108/jed-06-2020-0080.; Diep BH, Anh TT (2020) Synergies in merger & acquisition: a case study of SMEs in Vietnam. J Proj Manag. https://doi.org/10.5267/j.jpm.2020.6.001.; Duong Vu Xuan Quynh, Nguyen Hoang Huy (2018) Supply chain management practices, competitive advantages and firm performance: a case of small and medium enterprises (SMEs) in Vietnam. J Mod Account Audit. 10.17265/1548-6583/2018.03.004.; Ehsanullah S, Tran QH, Sadiq M, Bashir S, Mohsin M, Iram R (2021) How energy insecurity leads to energy poverty? Environmental Science and Pollution Research, Do environmental consideration and climate change concerns matters. https://doi.org/10.1007/s11356-021-14415-2. (PMID: 10.1007/s11356-021-14415-2); Feng Y, He F (2020) The effect of environmental information disclosure on environmental quality: evidence from Chinese cities. J Clean Prod. https://doi.org/10.1016/j.jclepro.2020.124027.; Fitzenberger B (1998) The moving blocks bootstrap and robust inference for linear least squares and quantile regressions. J Econom. https://doi.org/10.1016/S0304-4076(97)00058-4.; Ha HH, Nguyen AH (2020) Determinants of voluntary audit of small and medium sized enterprises: evidence from Vietnam. J Asian Financ Econ Bus. https://doi.org/10.13106/JAFEB.2020.VOL7.NO5.041.; He Y, Qin Y, Wang S et al (2019) Electricity consumption probability density forecasting method based on LASSO-Quantile Regression Neural Network. Appl Energy. https://doi.org/10.1016/j.apenergy.2018.10.061.; Hoang PL, Shin H (2020) A study on internal communication factors as determinant of organizational health : evidence from small and medium-sized enterprises (SMEs) in Vietnam. Asian Commun Res. 10.20879/acr.2020.17.1.76.; Hsu CC, Quang-Thanh N, Chien F, Li L, Mohsin M (2021) Evaluating green innovation and performance of financial development: mediating concerns of environmental regulation. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-14499-w.; Huang SZ, Sadiq M, Chien F (2021a) The impact of natural resource rent, financial development, and urbanization on carbon emission. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-16818-7.; Huang SZ, Sadiq M, Chien F (2021b) Dynamic nexus between transportation, urbanization, economic growth and environmental pollution in ASEAN countries: does environmental regulations matter? Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-17533-z.; Huang SZ, Chien F, Sadiq M (2021c) A gateway towards a sustainable environment in emerging countries: the nexus between green energy and human Capital. Economic Research-Ekonomska Istraživanja. https://doi.org/10.1080/1331677X.2021.2012218.; Iqbal W, Tang YM, Chau KY et al (2021) Nexus between air pollution and NCOV-2019 in China: application of negative binomial regression analysis. Process Saf Environ Prot. https://doi.org/10.1016/j.psep.2021.04.039.; Junnonyang E (2021) Integrating TAM, perceived risk, trust, relative advantage, government support, social influence and user satisfaction as predictors of mobile government adoption behavior in Thailand. Int J eBus eGov Stud 13(1):159–178.; Kasim S, Hassan R, Zakaria Z et al (2019) Online activity duration management system for manufacturing company. Acta Electron Malaysia. https://doi.org/10.26480/aem.02.2019.01.08.; Kim Chi NT, Van CB, Duc BM (2019) Impact of corporate governance on investment in SMEs Vietnam. Int J Econ Financ. https://doi.org/10.5539/ijef.v11n11p59.; Kumar JR, Natasha B, Suraj K et al (2019) Rooftop farming: an alternative to conventional farming for urban sustainability. Malaysian J Sustain Agric. https://doi.org/10.26480/mjsa.01.2019.39.43.; Le HTD, Bui MT, Nguyen GTC (2021) Factors affecting electronic tax compliance of small and medium enterprises in Vietnam. J Asian Financ Econ Bus. 10.13106/jafeb.2021.vol8.no1.823.; Le HTH, Tuyet VTB, Hanh CTB, Do QH (2020) Factors affecting tax compliance among small-and medium-sized enterprises: evidence from vietnam. J Asian Financ Econ Bus. 10.13106/jafeb.2020.vol7.no7.209.; Le V, Vu XB, Nghiem S (2018) Technical efficiency of small and medium manufacturing firms in Vietnam: a stochastic meta-frontier analysis. Econ Anal Policy. https://doi.org/10.1016/j.eap.2018.03.001.; Li J (2020) The way to improve the risk management and control ability of small-medium port enterprises. J Coast Res. https://doi.org/10.2112/SI103-046.1.; Li W, Chien F, Hsu CC et al (2021a) Nexus between energy poverty and energy efficiency: estimating the long-run dynamics. Resour Policy. https://doi.org/10.1016/j.resourpol.2021.102063.; Li W, Chien F, Kamran HW, Aldeehani TM, Sadiq M, Nguyen VC, Taghizadeh-Hesary F (2021b) The nexus between COVID-19 fear and stock market volatility. Economic Research-Ekonomska Istraživanja. https://doi.org/10.1080/1331677X.2021.1914125.; Liu Z, Tang YM, Chau KY, Chien F, Iqbal W, Sadiq M (2021a) Incorporating strategic petroleum reserve and welfare losses: a way forward for the policy development of crude oil resources in South Asia. Res Policy. https://doi.org/10.1016/j.resourpol.2021.102309.; Liu Z, Lan J, Chien F, Sadiq M, Nawaz MA (2021b) Role of tourism development in environmental degradation: a step towards emission reduction. Journal of environmental management. https://doi.org/10.1016/j.jenvman.2021.114078.; Mao CC, Ma ZX (2021) The analysis of the regional economic growth and the regional financial industry development difference in china based on the theil index. Int J Econ Finan Stud 13(1):128–154.; Narváez ARA, López JWP, Ochoa CL (2021) Causes of labor informality in Montería, Colombia. A Probit econometric model. Cuadernos de Economía-Spanish. J Econ Finan 44(124):23–32.; Nguyen DN, Nguyen TTH, Nguyen TT et al (2022) The effect of supply chain finance on supply chain risk, supply chain risk resilience, and performance of Vietnam SMEs in global supply chain. Uncertain Supply Chain Manag. https://doi.org/10.5267/j.uscm.2021.9.005.; Nguyen HT, Nguyen ND, van Tran B (2020) Factors associated with middle managers’ work motivation: evidence from SMEs in Vietnam. J Asian Financ Econ Bus. 10.13106/jafeb.2020.vol7.no11.1009.; Oanh TTK, Thang ĐQ, Cuc NTT et al (2021) The effects of corporate social responsibility and practices on the performance of SMEs in Vietnam. Accounting. https://doi.org/10.5267/j.ac.2021.5.015.; Ojogiwa OT (2021) The crux of strategic leadership for a transformed public sector management in Nigeria. Int J Bus Manag Stud 13(1):83–96.; Othman Z, Nordin MFF, Sadiq M (2020) GST fraud prevention to ensure business sustainability: a Malaysian case study. Journal of Asian Business and Economic Studies 27(3):245–265. (PMID: 10.1108/JABES-11-2019-0113); Padhan H, Padhang PC, Tiwari AK et al (2020) Renewable energy consumption and robust globalization(s) in OECD countries: do oil, carbon emissions and economic activity matter? Energy Strateg Rev. https://doi.org/10.1016/j.esr.2020.100535.; Sadiq, M., Hsu, CC., Zhang, Y., Chien, FS. (2021). COVID-19 fear and volatility index movements: empirical insights from ASEAN stock markets. Environmental Science and Pollution Research, https://doi.org/10.1007/s11356-021-15064-1.; Sadiq M, Nonthapot S, Mohamad K, O.C., Ehsanullah, S., Iqbal, N. (2021b) Does green finance matters for sustainable entrepreneurship and environmental corporate social responsibility during Covid-19? China Finance Rev Int. https://doi.org/10.1108/CFRI-02-2021-0038.; Sadiq M, Alajlani S, Hussain MS, Ahmad R, Bashir F, Chupradit S (2021c) Impact of credit, liquidity, and systematic risk on financial structure: comparative investigation from sustainable production. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-17276-x.; Shahzad U, Sarwar S, Farooq MU, Qin F (2020) USAID, official development assistance and counter terrorism efforts: pre and post 9/11 analysis for South Asia. Socioecon Plann Sci. https://doi.org/10.1016/j.seps.2019.06.001.; Shrestha ATD, Baudhacharya N, Ramtel R et al (2020) Information and communication technology (ICT) mediated extension services in agriculture in Nepal — a review. Acta Inform Malaysia. https://doi.org/10.26480/aim.02.2020.33.36.; Sun H ping, Tariq G, Haris M, Mohsin M (2019) Evaluating the environmental effects of economic openness: evidence from SAARC countries. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-019-05750-6.; Sun H, Pofoura AK, Adjei Mensah I et al (2020a) The role of environmental entrepreneurship for sustainable development: evidence from 35 countries in Sub-Saharan Africa. Sci Total Environ. https://doi.org/10.1016/j.scitotenv.2020.140132.; Sun L, Cao X, Alharthi M et al (2020b) Carbon emission transfer strategies in supply chain with lag time of emission reduction technologies and low-carbon preference of consumers. J Clean Prod. https://doi.org/10.1016/j.jclepro.2020.121664.; Sun Y, Chen L, Sun H, Taghizadeh-Hesary F (2020c) Low-carbon financial risk factor correlation in the belt and road PPP project. Financ Res Lett. https://doi.org/10.1016/j.frl.2020.101491.; Tan LP, Sadiq M, Aldeehani TM, Ehsanullah S, Mutira P, Vu HM (2021) How COVID-19 induced panic on stock price and green finance markets: global economic recovery nexus from volatility dynamics. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-17774-y.; Thai TM (2019) Strategic capabilities, innovation strategy and the performance of manufacturing SMES in Vietnam. Int J Innov Creat Chang.; Thuy LT, Diu TTP, Hoan ND, Ninh VV, Nga NTT (2021) Factors affecting intention to purchase organic agriculture products among Vietnamese. AgBioForum 23(2):1–12.; Tiep NC, Wang M, Mohsin M et al (2021) An assessment of power sector reforms and utility performance to strengthen consumer self-confidence towards private investment. Econ Anal Policy. https://doi.org/10.1016/j.eap.2021.01.005.; Tsai JF, Nguyen PH, Lin MH et al (2021) Impacts of environmental certificate and pollution abatement equipment on smes’ performance: an empirical case in Vietnam. Sustain. https://doi.org/10.3390/su13179705.; Van N (2019) Corporate social responsibility and SMEs in Vietnam: a study in the textile and garment industry. J Risk Financ Manag. https://doi.org/10.3390/jrfm12040174.; van Song N, Hanh PTM, Cuc MT, Tiep NC (2020) Factors affecting human resources development of SMEs: evidence from the fourth Industrial revolution in Vietnam. Manag Sci Lett. https://doi.org/10.5267/j.msl.2020.4.040.; Vu Q, Tran TQ (2020) Government financial support and firm productivity in vietnam. Financ Res Lett. https://doi.org/10.1016/j.frl.2020.101667.; Vu Thi KA, Vu TD, Van HK (2018) Using the balanced scorecard to measure the performance of small and medium-sized garment enterprises in Vietnam. Account Financ Res. https://doi.org/10.5430/afr.v7n3p251.; Xiang D, Zhang Y, Worthington AC (2021a) Determinants of the use of fintech finance among chinese small and medium-sized enterprises. IEEE Trans Eng Manag. https://doi.org/10.1109/TEM.2020.2989136.; Xiang H, Ch P, Nawaz MA, Chupradit S, Fatima A, Sadiq M (2021b) Integration and economic viability of fueling the future with green hydrogen: an integration of its determinants from renewable economics. Int J Hydrogen Energy. https://doi.org/10.1016/j.ijhydene.2021.09.067.; Xiang P, Qu L (2020) Overseas mergers and acquisitions of maritime enterprises under the background of ocean economy adjustment and optimization. J Coast Res. https://doi.org/10.2112/SI103-050.1.; Xuan VN, Thu NTP, Anh NT (2020) Factors affecting the business performance of enterprises: evidence at Vietnam small and medium-sized enterprises. Manag Sci Lett. https://doi.org/10.5267/j.msl.2019.10.010.; Xueying W, Sadiq M, Chien F, Ngo TQ, Nguyen AT (2021) Testing role of green financing on climate change mitigation: Evidences from G7 and E7 countries. https://doi.org/10.1007/s11356-021-15023-w. (PMID: 10.1007/s11356-021-15023-w); Yaw WK (2020) Malaysia small and medium enterprises (SMEs) expand into Vietnam halal food industry. J Manag Econ Ind Organ. 10.31039/jomeino.2020.4.3.3.; Zhang D, Mohsin M, Rasheed AK et al (2021) Public spending and green economic growth in BRI region: mediating role of green finance. Energy Policy. https://doi.org/10.1016/j.enpol.2021.112256.; Zhao L, Zhang Y, Sadiq M, Hieu VM, Ngo TQ (2021) Testing green fiscal policies for green investment, innovation and green productivity amid the COVID-19 era. Economic Change and Restructuring. https://doi.org/10.1007/s10644-021-09367-z.; Zheng Y, Han W, Yang R (2021) Does government behaviour or enterprise investment improve regional innovation performance? — evidence from China. Int J Technol Manag. https://doi.org/10.1504/IJTM.2021.115266. |
| Contributed Indexing: | Keywords: Business environment; Financing policies; GDP growth; SME financing; Technical SMEs |
| Entry Date(s): | Date Created: 20220314 Date Completed: 20220803 Latest Revision: 20250728 |
| Update Code: | 20260130 |
| PubMed Central ID: | PMC8919356 |
| DOI: | 10.1007/s11356-022-19528-w |
| PMID: | 35287198 |
| Database: | MEDLINE |
Journal Article; Retracted Publication