Hanoi (VNA) - A new study has found that only 37 percent ofwomen-owned SMEs in Vietnam have accessed bank loans in the last two years,compared to 47 percent of male business owners.

The study authors urged banks to design uniquely tailored products and servicesfor women-owned small- and medium-sized enterprises (SMEs) in order to supportthe under-tapped potential of this segment.

The study, by the International Finance Corporation (IFC)under the World Bank, “Women-Owned Enterprises in Vietnam: Perceptions andPotential”, released on November 16, said that investing in women and promotinggender equality helps businesses reach new markets and expand.

The IFC report identifies Vietnam’s women entrepreneurs asone of the significant forces within the SME sector. Their 95,900 firms accountfor 21 percent of the country’s total formal enterprises, and 42 percent ofwomen’s businesses are SMEs.

Running nearly 45,000 SMEs across sectors, womenentrepreneurs were found to bring in average annual revenue similar to that ofmale entrepreneurs. Despite their strength, women entrepreneurs are less likelyto access loans than their male peers.

“One of the key difficulties that women-owned businesses findis limited capital access in banks. They feel they are not taken seriously asthe customer segment,” said Rubin Japhta, senior operations officer of theIFC’s Banking on Women/SME Banking division.

Speaking with the Vietnam News on the sidelines atthe seminar, Rubin said women more often find informal forms of financing. Forexample, they borrow from their families or take personal loans from banks anduse the money for their businesses.

“This is a more expensive financing option for business,”Rubin said.

“Banks need to change their services and see the women-owned SMEs as a distinctmarket segment. You need to think and look through what we call the genderlens.”

The financing gap is estimated at 1.2 billion USD forwomen-owned SMEs in Vietnam. Though Vietnam has policies to encourage women’sentrepreneurship, most banks see this segment as less profitable, higher riskand lacking in financial management skills.

The IFC’s research showed that women business owners want toborrow more to invest in their companies and they typically record higherrevenue per employee and lower default rates than their male counterparts.

“Vietnamese women are great at doing business. They are moreaware of risks than male counterparts, which allows them to better run theirbusinesses,” said Craig Chittick, Australian Ambassador to Vietnam.

Vietnamese women have a large role in their families but theyare very good at balancing family responsibilities and running businesses, theambassador said. He endorsed the idea that banks should provide better servicesto women entrepreneurs.

Dao Gia Hung, deputy head of SME Banking of the Vietnam ProsperityJSC Bank (VPB), said VPBank initiated its pilot women strategy one year ago andthe percentage of businesswomen in its SMEs portfolio increased from 15 percentto 25 percent this year.

“The non-performing loan (NPL) rate among women-ownedbusinesses is lower than among men,” Hung said, adding that he believes womenare more risk-averse than men and they make payments carefully. “We see a bigopportunity in the over 1 billion USD market of women entrepreneurs.”

On November 16, IFC also launched the study “TacklingChildcare: The Business Case for Employer-Supported Childcare” which encouragescompanies to support childcare for women employees. By doing so, they can hireand retain talented women, boosting profits and productivity.

IFC has invested more than 1 billion USD in private-sectorbanks via its Banking on Women programme and has provided advisory services tobanks that want to better serve the women’s market.-VNA