Credit Support Policy Affecting the Development of the Small and Medium Enterprises Post-Covid-19 in Vietnam

Abstract

From 2020 until now, the Covid-19 pandemic has significantly impacted businesses in general and small and medium enterprises (SMEs) in Vietnam in particular. The successive waves of the Covid-19 epidemic with complicated developments have seriously affected all aspects of life, production, and busi-ness. Many businesses have weakened their reserves and even exhausted their finances to overcome the epidemic. To deal with the epidemic, the Government urgently implemented many fiscal and monetary policies. Thus, the paper's main objective is to study various factors affecting the development of Vietnam's small and medium enterprises. This article surveyed data from 550 managers working at small and medium enterprises and used structural equation modeling (SEM) and SPSS 20.0, Amos software. The paper finds five factors affecting small and medium enterprises development with a sig-nificance level of 0.01, and five hypotheses are accepted. The article's nov-elty is finding out the credit support policy factor that has the most substantial impact on the development of small and medium enterprises. Finally, the author proposed policy recommendations to support small and medium enterprises develop a safe, healthy, and sustainable post-Covid-19. Moreover, this article shows the actual situation of implementing a credit support policy to help Vietnamese businesses affected by the Covid-19 epidemic. © 2023, Economic Laboratory for Transition Research. All rights reserved.