Vietnam business trends: Legal strategy and SME capital challenges

In Vietnam, the role of corporate legal departments is evolving from mere dispute resolution to becoming strategic partners for leadership. Modern legal teams focus on proactive risk management, ensuring regulatory compliance, and supporting business expansion through contract drafting, internal audits, and legal advisory services.

Simultaneously, small and medium-sized enterprises (SMEs) in Vietnam continue to face significant capital constraints. Despite representing nearly 98% of the country's active businesses, SMEs receive only about 20% of total economic credit. Approximately 70% of these enterprises struggle to access bank loans, primarily due to a lack of collateral. Proposed amendments to the Law on Support for Small and Medium-Sized Enterprises aim to address these bottlenecks by seeking more flexible approaches to financial resource access.