Statistics indicated that by the end of 2025, Vietnam's total import-export turnover reached a record $930 billion, with exports accounting for $475 billion and imports $455 billion. With an export-to-GDP ratio exceeding 90%, Vietnam has become a crucial link and a new driving force in global trade. However, behind this explosive growth, the financial infrastructure has not kept pace with the development of trade.
Lack of financial tools
At an international factoring seminar organized in Hanoi on March 17-18, 2026, by the Vietnam Banks Association (VNBA), the International Factoring Organization (FCI), and IFC, Dr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the VNBA, stated that Vietnam has currently 16 credit institutions participating in factoring with outstanding loans of about VND22 trillion (more than $836.7 million). "Compared to the VND20 quintillion in total outstanding loans of the entire economy, factoring only accounts for a modest 0.1%," Mr. Hung said.
According to the VNBA representative, although the 2024 Law on Credit Institutions and Circular 20 of the State Bank have created an initial legal framework, practical implementation still faces many obstacles. Banks are currently facing difficulties in assessing the financial capacity and legal effectiveness of foreign partners. "Domestic banks find it very difficult to assess customers in Africa and America. This is an extremely significant challenge without international network connectivity," Mr. Hung emphasized.
Data compiled by the International Factoring Organization (FCI) shows that only about 21% of Vietnamese SMEs are linked to the global supply chain, compared to 30% in Thailand and 46% in Malaysia. According to Ms. Nguyen Hong Giang, a representative of the Swiss Federal Economic Department (SECO), the lack of modern financial tools such as factoring is one of the "barriers" preventing these businesses from maximizing their potential and income.
Unclocking the collateral bottleneck
One of the core reasons why factoring has not yet broken through, according to experts, is the traditional credit mindset. For decades, Vietnamese banks have always prioritized collateral in the form of real estate or existing assets. However, in the era of trade transactions paid by open account, this mindset has become outdated.
Mr. Lin Hui, Regional Director for Asia, International Factoring Organization (FCI), believed that in the current new context, accounts receivable data is the new type of collateral. The global shift from traditional letters of credit (L/C) to open account payments requires Vietnamese banks to make timely changes. Instead of relying on stringent collateral requirements, factoring allows financing based on receivables from actual trade transactions.
Currently, Circular 20 is being reviewed by the central bank to better align with reality. According to Dr. Nguyen Quoc Hung, VNBA is researching proposals to the Credit Department of Economic Sectors (under the State Bank of Vietnam), to resolve obstacles in assessing customers as buyers in trade transactions and other technical conditions. The goal is to create an environment where banks can confidently expand factoring operations not only based on the seller's assets but also on the buyer's reputation and data and relationships in the supply chain.
Moreover, the lack of a detailed guidebook is also a reason why banks are hesitant. Therefore, a "Factoring Handbook" needs to be issued to standardize processes, from customer reception to risk management and international dispute resolution.
Another key project being promoted is the Trade Finance Database Platform (TFR). This project aims to standardize enterprise data, especially SMEs, and improve the electronic invoice management system. When trade data is transparent and shared among financial institutions, fraud risk will decrease, thereby creating trust for banks to disburse based on actual cash flow instead of holding a certificate of land use rights and ownership of house and other assets attached to land as a collateral.
According to Mr. Jinchang Lai, Principal Operations Officer of the Financial Institutions Group in Asia & Pacific, International Finance Corporation, these transformations require a comprehensive change in mindset, from chasing loan volume to pursuing capital efficiency; from viewing factoring as a cost increase to seeing these cost increases as an "investment for growth." When barriers are removed, Vietnam can capture billions of USD in untapped trade flows, not only supporting SMEs to overcome difficulties but also positioning itself as a leading factoring center in the Asia region.
However, Vietnamese factoring cannot stand alone. Joining the global FCI network is seen as the "key" to solving the cross-border assessment problem. Through FCI, Vietnamese banks can cooperate with import factoring agents in over 90 countries. This "two-factor" model brings dual benefits: Vietnamese exporters can receive invoice payments before the due date, thereby reinvesting in production; while banks optimize risk-weighted assets and enhance risk-adjusted return on capital.
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