Determinats of ability getting banks loan case of enterprises located in ip epz in hochiminh city

UNIVERSITY OF ECONOMICS INSTITUTE OF SOCIAL STUDIES HO CHI MINH CITY THE HAGUE VIETNAM NETHERLANDS VIE1NAM-NETHERLANDS PROJECT FOR M.A ON DEVELOPMENT ECONOMICS DETERMINANTS OF ABILITY GETTING BANK'S LOAN CASE OF ENTERPRISES LOCATED IN IP & EPZ IN HOCHIMINH CITY A thesis submitted in partial fulfillment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS BY LAM CANH DUONG BQ GIAO Dl)C VA fJAO T/·C> • TRLIClNG E>H KINH TE TP HCM I THU VI:¢N ( bI Ab S"\) l Ho Chi Minh City, November 2007 Academic Supervisor: Dr VO THI QUY CERTIFICATION "I certificate that the thesis is my own research working The data and result which mentioned in the thesis are honest and have been not submitted for any degree" Signature Lam Canh Duong ACKNOWLEDGMENT I would like to express my appreciation to the following people who helped me to achieve this thesis and without them; I could not get successful results First of all, I would like to thank the following individuals and organization for their helpful supports Doctor Vo Thi Quy, the academic supervisor in the domain of learning, she, who has spent much time in advising to this essay Her ideas and comments that helped my thesis much more clear and coherent I would like to thank, particularly, Doctor Nguyen Trong Hoai, who has given me much valuable advices and necessary skills to orient and consolidate my point of view so far during my statement this thesis I would like to thank to all Lecturers and Staff of Vietnam-Netherlands' Project for Master on Development Economics, thank to this helpful program, I have improved my knowledge as well as understanding a basic development economics and a method of science studying which meet international standard In addition, it seems appropriate to acknowledge all of my colleagues whose have been so helpful during my studying course by their assistances, encouragements and cooperation as well as sharing their hands during my preparation ofthis composition Finally, I would like to thank all of my family members who have helped and encouraged me much more since the beginning until achievement this thesis ii ABSTRACT Credit capital is one of main resources of financing for Enterprises in developing countries; Vietnam is going on the way of modernization and industrialization the economy; the developing of Industrial Parks and Export-processing Zones role important for the growth of the economy Enterprises doing business in Industrial Parks and Export-processing Zones have demand for banks' Loan, but there are many factors that effect Enterprises' ability to borrow from banks Base on practically of Vietnam and data survey, this thesis investigates determinants of ability getting banks' Loan case of Enterprise operating in Industrial Parks and Export-processing Zones in Hochiminh City It is figured out that besides collateral as a decisive factor, two main factors distributing important role in the process of applying and getting Loan are character and capacity of Enterprises Thus, for enterprise wishing to borrow from bank, they should improve their character and capacity In other hand, Banks that want to speed up sustainable developing in this market, they should have attention on their credit policy that concentrate to explore these conditions mentioned iii TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 Background 1.2 Research question 1.3 Scope of study 1.4 Methodology 1.5 The structure of thesis CHAPTER II: THE SITUATION OF CREDIT ACTIVITY IN INDUSTRIAL PARKS AND EXPORT PROCESSING ZONES IN HOCHIMINH CITY 2.1 The process offorming and the role ofiPs & EPZs in Vietnam 2.1.1 Type ofiPs in the world and in the region 2.1.2 Indispensable of development scheme IPs & EPZs in Vietnam 2.2 Development situation of IPs & EPZs in HCM city 2.2.1 Historical of developing of IPs & EPZs in HCM city 2.2.2 The situation of activity of enterprise in IPs & EPZs 2.3 The role of credit to development ofiPs & EPZs 10 2.4 The situation of lending activity of bank for enterprise in IPs 11 2.5 Summary of the chapter 15 CHAPTER III: LITERATURE REVIEW 17 3.1 Theory background 17 3.1.1 Concept of Credit 17 3.1.2 Nature and functions of banking credit 17 3.1.3 Corporate Demand on Capital 19 3.1.4 Cost of using Debt 20 3.1.5 Asymmetric Information (AI) 21 3.1.5.1 Lending with Adverse Selection 22 3.1.6 Credit Rationing 23 3.1.7 Credit Rating 24 3.1.8 Credit analysis and Loan decision 25 3.2 Empirical study 32 3.3 The Model 34 CHAPTER IV: METHODOLOGY 38 iv 4.1 The econometric design 38 4.2 The Conceptual design 40 4.3 Data collection method 42 4.4 Sampling method 42 CHAPTER V: DATA PROCESSING AND EMPIRICAL RESULT 45 5.1 Factoring 45 5.1.1 Determine the number offactors 45 5.1.2 Factor Rotation 47 5.1.3 Putting name and interpreting factors 49 5.2 Regression 51 5.2.1 Evaluating level of appropriate of regression model 52 5.2.2 Testing reliability of multiple linear regression model 52 5.2.3 Hypothesis testing 53 5.3 Statistical results 54 5.3.1 Descriptive statistics 54 5.3.2 The reasons explaining enterprise's difficulty in obtaining Loans 56 5.4 Summary this chapter 57 CHAPTER VI: CONCLUSION AND POLICY IMPLICATION 59 6.1 Conclution 59 6.2 Policy implication 60 v LIST OF TABLE Table 2.1 The situation of lending and accumulated loan 11 Table 2.2 Loan accumulated and weigh ofloan in IPs, EPZs 12 Table 2.3 Market share and type ofbanks 13 Table 3.1 :Credit rating 24 Table 3.2 A Framework for finance statement analysis 27 Table 3.3 Types ofRatios 27 Table 3.4 Following explain the meaning ofvariales 36 Table 4.1 Distribution of population .43 Table 5.1 Total Variance Explained 46 Table 5.2 Component Matrix 47 Table 5.3 The map of hypothesis testing 51 Table 5.4 Model Summary 52 Table 5.5 ANOVA(c) , 53 Table 5.6 Coefficients(a) 53 Table 5.7 Coefficients(a) ofTwo models 54 Table 5.8 (a)Type of Enterprise in descriptive statistic 55 Table 5.8 (b) Scale ofbusiness 55 Table 5.8(c) Age ofbusiness 55 Table 5.8 (d) Main business line 56 Table 5.8 (e) Finacial gap (At present, gotten loan or not) 56 Table 5.9 Reasons explaining enterprise's difficulty in obtaining Loans 57 vi ABBREVIATION AI Asymmetric information AS Adverse selection BOD Board of Director CEO Chief Executive Officer CFO Chief Financial Officer CIC Credit Information Center EPZs Export - Processing Zones HCMC Ho Chi Minh City HEPZA the HCMC Export Processing & Industrial Zone management unit IPs Industrial Parks MH Moral hazard SME Small and Medium Enterprise TC Total cost VND Vietnam currency in Dong % Percentage vii CHAPTER 1: INTRODUCTION 1.1 Background In the recent years, the accumulate of Credit's accelerate in the Industrial Parks and Export-Processing Zones in HCMC growth quickly; By the end of December 2005, The Total amount was reached 15,203 billion VN dong, Increase 6.7 times compare with year 2001 Growth rate of Credit simultaneously increasing of number of banks take in part on Credit activities field are 52 units included: 21 commercial banks, 12 joint-stock banks, joint - venture banks, 14 branch of foreign banks, leasing company, joint stock leasing company.(The State Bank of Vietnam, 2005) The increasing of amount of Credit as well as the distribution of banks show that the potential and intendancy of investments gain effectiveness on growth of Enterprises in industry Park and Processing Zone in HCMC, But , In order to approach the banking finance is still problem for the case of Enterprises located in Industry Parks and Export Processing Zones which caused by the conditions to apply for Loan: The Small and Medium-sized enterprises that have just moved and established the business in the Industry Parks usually got the obstacles on ability of finance, moreover, with the typical management followed the family tradition made the business successful is not high Therefore, it is really hard for Bank to valuate finance capacity of companies that want to make long term investment: As the aspect of competition, being the lack of information in Credit market, The Domestic Banks have less advantage than the Foreign Bank in approach and supply capital for Enterprises which attribute the foreign equity capital; Moreover, With tax policy, and favorable tax (reducing tax for the new established business) affected to psychology of intendancy in declare lost carried out in finance statement of Enterprises, Those were distorted the project appraisal concerned with the bank loan; For Enterprises, the property rights of using land or certificate of construction site implemented slowly which impact on collateral, mortgage asset formed from the Loan To solve the issues mentioned above, this study try to make clearly what factors effect to ability of enterprise getting loan from bank in the case of enterprises located in Industrial Parks and Export-processing Zones in HCMC Implementing the policy of Vietnam Gov, and the instructions of HCMC's People Committee in developing IPs & EPZs to mobilization Internal and External resource allocation, contributing for economic growth and social develop of HCM City partially , and general speaking for the Country; At begin of 200 1, 11 IPs & EPZs have been established including : EPZs ( Tan Thuan, Linh Trung1, Ling Trung 2) and IPs ( Binh Chieu, Le Minh Xuan, Tan Binh , Tan Tao, Tan Thoi Hiep, NorthWest Cu Chi, Vinh Loc, Hiep Phuoc) Total Enterprises that given business licenses are 492 , combine 257 Enterprises which have 1,121, millions US Foreign Capital invest and 253 domestic enterprises which have 3,528 billion VND capital invested; Almost of the infrastructure Company have large demand for capital loan, approximately equal 860 billion VND, to complete infrastructure's category of constructions , and facilitates public, and to expand the scale of IP & EPZs to service Enterprise, Simultaneously, the HCMC's policy about moving the firms located in residents areas (Those firms caused pollution in the City itself) enter IP & EPZs , making urgent required capital for Enterprise in equipment the new system machines replacing the old system, upgrading management organization and scale of their business The demands of Loan from Bank are very large , however, many of project meet difficulties in approach to Loan which caused by obligating regulations from Bank; with the history in business , the enterprise themselves can not using their trade mark or prestige for borrowing via Credit mechanisms, It is hardly to apply for procedures sufficiently to borrow or remittance as regulations; some of company are still hesitate to contact with commercial banks ; otherwise, It is hardly to approach other services of bank , because the services of bank in Vietnam have not developed efficiency and popularly; With theory related the asymmetric information, Bank itself prudentially consider about risks management, to reducing risk, bank offer many conditions on contractual loan Intuition, there are many variables affect to ability of Enterprises borrowing capital from bank, such as collateral, internal funds, firm size, contractual clauses, and credit relationship between firms and banks etc , so, this paper is intend to APPENDIX III Factor Analysis Communalities Initial the bank transacion offices are convenient Ability to meet debt obligation of enterprise is high Extraction 1.000 455 1.000 745 1.000 745 1.000 684 1.000 755 1.000 815 1.000 662 Director board are very keen to business environment changing 1.000 796 Enterprise has good operation process and good entenal edition 1.000 666 Sympathize, relation between BOD and staff are good 1.000 755 Business strategy of enterprise is suitable for the next period 1.000 804 Enterprise has good background credit relationship with bank considering by time and awarenness 1.000 723 Capacity of providing information for applying loan on time 1.000 716 Total Debt I Total asset ratio is low 1.000 734 Total long term debt I Total capitalization ratio is low 1.000 801 1.000 789 1.000 805 The effectiveness of using fix asset is high Demand for bamks loan at present is high The owner of company have experieces and high professional knowledge The CEO have good qualification The board of director have good relationship with stakeholder institutions and officers Gross Profit I Net sales ratio is high Earning from operating I Net sales ratio is high 75 Earning after tax I average share holder equity ratio is high 1.000 697 Earning after tax I average toatl asset ratio is high 1.000 655 EBITiinterest cost ratio is high 1.000 666 the situation of bad loan performmance comparing with loan accumulate is low 1.000 735 1.000 675 1.000 779 The prospection of business industrial is good 1.000 722 Capacity taking part in new market is very good 1.000 595 Capacity for threatening by " subtitute products" is very low 1.000 554 Business operating less depend on natural conditions 1.000 679 Stability of material input is high 1.000 637 Government offer industrial protection, subsidy, favourable to export for yours company 1.000 722 Trade mark and products of Enterprise are prestigous for comsumers 1.000 760 Level of asset insurance of enterprise is high 1.000 622 Changing in workforce gets less effecting to operation process 1.000 758 Capacity of getting other capital finance resource is high 1.000 689 When enterprise want to borrow from banks, the ability getting loan is high 1.000 617 Time waiting for loan accepted is quickly 1.000 712 The procedure apply for loan are complicated and wordy 1.000 725 Enterprise usually uses banking services Enterprise is planning extending credit relationship with bank in next time Extraction Method: Principal Component Analysis 76 Total Variance Explained Initial Eigenvalues Componen t Total %of Variance Extraction Sums of Squared Loadin s ~- Cumulati ve% - - - Total %of Variance Cumulati ve% Rotation Sums of Squared _Loacjings - Total %of Variance Cumulati ve% 12.037 33.437 33.437 12.037 33.437 33.437 7.512 20.867 20.867 3.015 8.376 41.813 3.015 8.376 41.813 3.849 10.691 31.558 2.289 6.357 48.170 2.289 6.357 48.170 2.884 8.011 39.569 2.187 6.074 54.244 2.187 6.074 54.244 2.665 7.404 46.973 1.785 4.958 59.202 1.785 4.958 59.202 2.309 6.413 53.386 1.731 4.808 64.010 1.731 4.808 64.010 2.285 6.347 59.733 1.258 3.495 67.505 1.258 3.495 67.505 2.039 5.664 65.397 1.149 3.192 70.696 1.149 3.192 70.696 1.908 5.299 70.696 963 2.676 73.372 10 832 2.310 75.682 11 808 2.244 77.926 12 771 2.141 80.067 13 666 1.849 81.915 14 648 1.799 83.715 15 578 1.607 85.321 16 548 1.522 86.844 17 483 1.342 88.186 18 443 1.232 89.418 19 431 1.196 90.614 20 364 1.012 91.627 21 352 977 92.604 22 316 879 93.483 23 303 841 94.324 24 273 758 95.081 25 255 707 95.788 26 236 655 96.443 27 203 564 97.007 28 190 527 97.534 29 164 455 97.988 30 155 431 98.419 31 146 407 98.826 32 112 311 99.136 ! 33 298 99.434 107 8.712E34 242 99.676 02 7.184E35 99.876 200 02 4.465E36 100.000 124 02 Extraction Method: Pnnc1pal Component Analysis 77 Component Matrix(a) Component the bank transacion offices are convenient 480 -.043 -.013 332 -.224 -.118 137 171 Ability to meet debt obligation of enterprise is high 815 -.078 -.092 9.117E02 -.073 4.197E02 106 198 The effectiveness of using fix asset is high 633 248 -.240 102 -.391 6.109E02 3.742E02 239 Demand for bamks loan at present is high 641 128 -.032 113 374 149 -.072 -.274 766 -.081 -.086 2.974E02 -.298 -.210 4.987E02 -.137 779 -.141 -.094 100 -.339 8.862E02 -.211 -.034 The board of director have good relationship with stakeholder institutions and officers 656 1.294E03 -.306 -.164 -.083 119 -.264 144 Director board are very keen to business environment changing 795 -.244 -.136 -.043 -.139 6.206E02 -.229 -.095 Enterprise has good operation process and good entenal edition 731 -.074 -.255 -.127 -.102 -.069 -.170 -.035 Sympathize, relation between BOD and staff are good 757' -.159 -.053 -.036 -.378 3.646E02 -.063 7.079E02 Business strategy of enterprise is suitable for the next period 829 -.286 -.120 1.090E02 3.033E02 -.078 -.080 -.088 Enterprise has good background credit relationship with bank considering by time and awarenness 701 -.400 7.725E02 5.619E02 -.160 6.136E02 183 -.006 Capacity of providing information for applying loan on time 672 -.414 129 177 2.128E02 211 2.873E02 1.512E02 8.148E02 -.019 432 462 -.062 542 1.739E02 Total long term debt I Total capitalization ratio is low 117 -.163 392 648 6.408E02 380 147 130 Gross Profit I Net sales ratio is high 564 408 470 6.616E02 -.049 -.270 -.050 2.754E02 I Net sales ratio is high 559 377 526 3.654E02 1.362E02 -.239 -.105 -.058 Earning after tax I average share holder equity ratio is high 544 399 380 7.976E02 -.085 -.246 -.053 -.142 The owner of company have experieces and high professional knowledge The CEO have good qualification Total Debt I Total asset ratio is low Earning from operating 78 172 i Earning after tax I average toatl asset ratio is high EBIT/interest cost ratio is high 440 516 333 3.001E02 -.138 c.013 -.193 163 571 227 333 -.113 -.116 -.239 3.715E02 -.305 the situation of bad loan perforrnmance comparing with loan accumulate is low 434 -.404 181 4.037E02 119 -.177 364 -.413 Enterprise usually uses banking services 491 221 -.119 274 408 240 -.222 -.151 Enterprise is planning extending credit relationship with bank in next time 672 -.318 4.000E02 167 441 -.011 -.037 -.019 The prospection of business industrial is good 730 -.346 5.660E02 -.131 179 7.181 E02 8.211E03 -.109 364 -.279 244 -.473 -.029 3.311 E04 169 269 457 -.098 235 -.337 273 158 -.255 5.316E02 372 -.062 317 -.400 324 -.092 266 305 550 2.297E02 117 -.427 160 111 264 173 9.668E02 678 -.142 1.078E02 5.429E02 451 122 -.107 708 108 -.239 -.229 226 236 -.148 -.090 432 530 -.187 -.246 186 138 2.928E02 5.917E02 335 298 -.245 1.003E02 -.173 207 541 -.364 571 356 -.343 9.089E02 -.007 -.096 301 103 606 277 -.104 186 216 -.229 3.185E02 167 417 8.034E02 -.385 250 338 -.256 7.659E03 9.888E02 234 -.525 -.289 533 Capacity taking part in new market is very good Capacity for threatening by " subtitute products" is very low Business operating less depend on natural conditions Stability of material input is high Government offer industrial protection, subsidy, favourable to export for yours company Trade mark and products of Enterprise are prestigous for comsumers Level of asset insurance of enterprise is high Changing in workforce gets less effecting to operation process Capacity of getting other capital finance resource is high When enterprise want to borrow from banks, the ability getting loan is high Time waiting for loan accepted is quickly The procedure apply for loan are complicated and wordy I I 223' 115 Extraction Method: Pnnc1pal Component Analys1s a components extracted 79 303 -.066 Rotated Component Matrix(a) Component -.141 6.113E02 329 239 7.724E02 179 147 271 160 306 166 5.442E02 658 237 -7.117E02 2.073E02 360 226 5.980E02 -.257 267 246 658 5.048E02 209 158 8.012E02 205 731 324 1.141 E02 4.047E02 121 146 -.101 261 855 214 163 -2.023E02 3.844E02 -6.559E03 9.524E02 2.490E02 668 4.909E02 314 157 9.329E02 8.498E02 -.140 -.235 808 125 321 9.756E02 -2.795E02 -2.062E03 -3.115E02 117 Enterprise has good operation process and good entenal edition 704 147 265 113 6.523E02 125 -.211 2.798E02 Sympathize, relation between BOD and staff are good 825 204 1.211 E02 157 6.833E02 3.171E03 4.984E02 3.388E02 Business strategy of enterprise is suitable for the next period 726 138 333 175 -4.876E02 193 -3.289E02 277 Enterprise has good background credit relationship with bank considering by time and awarenness 674 7.103E02 3.623E02 276 1.384E02 6.317E02 229 361 Capacity of providing information for applying loan on time 594 3.170E02 253 231 -8.069E02 5.772E02 390 287 Total Debt I Total asset ratio is low 2.710E02 9.040E02 5.742E02 -1.325E02 3.192E02 -.142 831 -9.798E02 Total long term debt/ Total capitalization ratio is low 1.805E02 4.338E02 5.205E02 -6.136E02 -4.214E02 8.946E02 874 133 Gross Profit I Net sales ratio is high 175 839 6.830E02 155 3.916E02 133 8.219E02 1.051 E02 Earning from operating I Net sales ratio is high 142 850 160 156 -3.255E03 5.480E02 7.964E02 6.065E02 467 207 Ability to meet debt obligation of enterprise is high 685 The effectiveness of using fix asset is high Demand for bamks loan at present is high The owner of company have experieces and high professional knowledge The CEO have good qualification The board of director have good relationship with stakeholder institutions and officers Director board are very keen to business environment changing -1.375E02 the bank transacion offices are convenient 80 Earning after tax I average share holder equity ratio is high 198 788 105 2.810E02 108 7.031E02 2.122E02 9.331E02 179 687 9.359E02 9.180E02 128 1.255E02 127 -.319 272 670 9.639E02 118 135 -6.859E02 -.119 288 the situation of bad Joan perforrnmance comparing with Joan accumulate is low 243 101 8.821E02 176 -4.526E03 5.960E02 4.701E02 788 Enterprise usually uses banking services 177 167 703 -.112 172 220 178 -2.785E02 Enterprise is planning extending credit relationship with bank in next time 380 7.552E02 526 255 -.171 332 191 333 The prospection of business industrial is good 540 7.918E02 397 375 -4.943E02 3.752E02 4.855E02 347 280 5.389E02 -9.176E02 691 -9.637E02 -.105 -3.487E02 8.025E02 221 181 462 455 -.159 -.159 -5.977E03 -3.432E02 4.877E03 199 8.344E02 774 -3.497E02 145 -1.192E02 102 248 153 168 679 236 3.898E02 -4.191E02 6.077E02 -.133 149 273 -8.636E02 709 -5.730E02 9.363E02 -.294 474 9.292E02 608 246 269 5.113E02 -.139 -4.706E02 111 250 361 233 483 147 -.191 -.266 199 5.710E02 -6.205E03 -4.562E02 793 2.361E02 -1.728E02 289 354 201 6.950E02 8.223E02 511 491 -9.025E02 -2.649E02 276 372 255 107 142 552 -8.955E03 -3.742E02 191 -1.967E02 157 119 135 786 -2.963E02 8.418E03 Earning after tax I average toatl asset ratio is high EBITiinterest cost ratio is high Capacity taking part in new market is very good Capacity for threatening by" subtitute products" is very low Business operating less depend on natural conditions Stability of material input is high Government offer industrial protection, subsidy, favourable to export for yours company Trade mark and products of Enterprise are prestigous for comsumers Level of asset insurance of enterprise is high Changing in workforce gets Jess effecting to operation process Capacity of getting other capital finance resource is high When enterprise want to borrow from banks, the ability getting loan is high Time waiting for loan accepted is quickly 81 The procedure apply for loan are 4.691E- -5.703E- -6.419Ecomplicated and 02 03 02 wordy_ Extraction Method: Pnnc1pal Component Analys1s Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 10 iterations .359 351 -.668 5.196E02 -.132 Component Transformation Matrix Component 1 738 387 348 -.320 553 083 -.276 597 -.108 022 059 -.005 -.488 -.121 694 I I 168 220 062 152 567 105 -.138 -.454 306 -.312 -.364 446 181 -.621 -.071 444 630 105 -.131 386 000 146 286 I -.165 280 061 -.372 333 088: 396 -.475 544 -.247 -.178 -.140 -.425 343 573 259 156 481 058 -.111 -.295 455 -.214 411 248 -.643 Extraction Method: Pnnc1pal Component Analysis Rotation Method: Varimax with Kaiser Normalization RELIABILITY /VARIABLES=c31 c32 c33 c43 c23 /SCALE('ALL VARIABLES') ALL/MODEL=ALPHA /STATISTICS=DESCRIPTIVE SCALE /SUMMARY=TOTAL Reliability [DataSetl] F:\DATA THESIS.sav Scale: ALL VARIABLES Case Processing Summary % N Cases Valid Excluded( a) Total 97 93.3 6.7 104 100.0 a L1stw1se delet1on based on all vanables m the procedure Reliability Statistics Cronbach's AIJ)ha I 869[ N of Items 82 Item Statistics Mean Std Deviation N Gross Profit I Net sales ratio is high 3.0103 81003 97 Earning from operating I Net sates ratio is high 3.0619 76123 97 Earning after tax I average share holder equity ratio is high 3.0928 77839 97 Earning after tax I average toatl asset ratio is high 2.8763 88102 97 EBITiinterest cost ratio is high 3.0103 85993 97 Scale Mean if Item Deleted Scale Variance if Item Deleted Item-Total Statistics Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted Gross Profit I Net sales ratio is high 12.0412 7.165 735 831 Earning from operating I Net sales ratio is high 11.9897 7.177 797 817 Earning after tax I average share holder equity ratio is high 11.9588 7.248 752 827 Earning after tax I average toatl asset ratio is high 12.1753 7.313 613 863 EBITiinterest cost ratio is high 12.0412 7.477 593 867 Scale Statistics Mean 15.0515 Variance Std Deviation 11.008 3.31779 N of Items MEAN(c31,c32,c33,c43,c23) COMPUTE capacity EXECUTE RELIABILITY /VARIABLES=c12 c13 c14 clS c16 /SCALE('ALL VARIABLES') ALL/MODEL=ALPHA /STATISTICS=DESCRIPTIVE SCALE /SUMMARY=TOTAL Reliability [DataSetl] F:\DATA THESIS.sav Scale: ALL VARIABLES 83 Case Processing Summary N Cases Valid Excluded( a) Total % 102 98.1 1.9 104 100.0 a L1Stw1se deletion based on all vanables 1n the procedure Reliability Statistics Cronbach's Alpha 889 N of Items i Item Statistics Mean Std Deviation N The owner of company have experieces and high professional knowledge 3.8137 95161 102 The CEO have good qualification 3.8431 95176 102 Director board are very keen to business environment changing 3.7941 97836 102 Enterprise has good operation process and good entenal edition 3.5294 1.01187 102 Enterprise has good background credit relationship with bank considering by time and awarenness 4.0588 1.13298 102 Scale Mean if Item Deleted Scale Variance if Item Deleted Item-Total Statistics Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted The owner of company have experieces and high professional knowledge 15.2255 11.741 757 860 The CEO have good qualification 15.1961 11.585 786 853 Director board are very keen to business environment changing 15.2451 11.335 803 849 Enterprise has good operation process and good entenal edition 15.5098 11.817 682 876 84 Enterprise has good background credit relationship with bank considering by time and awarenness 14.9804 11.346 649 888 Scale Statistics Mean 19.0392 Variance 17.583 Std Deviation 4.19316 N of Items MEAN(cl2,c13,c14,cl5,cL6) COMPUTE character EXECUTE RELIABILITY /VARIABLES=c42 c34 /SCALE('ALL VARIABLES') ALL/MODEL=ALPHA /STATISTICS=DESCRIPTIVE SCALE /SUMMARY=TOTAL Reliability [DataSetl) F:\DATA THESIS.sav Scale: ALL VARIABLES Case Processing Summary N Cases Valid Excluded( a) Total % 99 95.2 4.8 104 100.0 a L1stw1se deletion based on allvanables 1n the procedure Reliability Statistics I Cronbach's , Alpha I N of Items 7481 Item Statistics Mean Std Deviation N Total Debt I Total asset ratio is low 2.9899 1.09260 99 Total long term debt I Total capitalization ratio is low 3.1717 1.14322 99 85 Item-Total Statistics Scale Variance if Item Deleted Scale Mean if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted Total Debt/ Total asset ratio is low 3.1717 1.307 598 (a) Total long term debt I Total capitalization ratio is low 2.9899 1.194 598 (a) a The value 1s negat1ve due to a negat1ve average covanance among 1tems Th1s VIOlates reliability model assumptions You may want to check item codings Scale Statistics Mean 6.1616 Variance 3.994 Std Deviation 1.99850 N of Items COMPUTE capital MEAN(c42,c34) EXECUTE RELIABILITY /VARIABLES=p c510 /SCALE('ALL VARIABLES') ALL/MODEL=ALPHA /STATISTICS=DESCRIPTIVE SCALE /SUMMARY=TOTAL Reliability [DataSetl] F:\DATA THESIS.sav Scale: ALL VARIABLES Case Processing Summary % N Cases Valid Excluded( a) Total 104 100.0 0 100.0 104 a L1stw1se deletion based on all vanables 1n the procedure Reliability Statistics Cronbach's i Alpha I N of Items 611 / 86 Item Statistics Mean N Std Deviation When enterprise want to borrow from banks, the ability getting loan is high 3.3077 98609 104 Time waiting for loan accepted is quickly 3.2692 1.09926 104 Scale Mean if Item Deleted Scale Variance if Item Deleted Item-Total Statistics Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted When enterprise want to borrow from banks, the ability getting loan is high 3.2692 1.208 442 (a) Time waiting for loan accepted is quickly 3.3077 972 442 (a) a The value IS negat1ve due to a negat1ve average covanance among 1tems Th1s VIolates reliability model assumptions You may want to check item codings Scale Statistics Mean 6.5769 Variance 3.140 Std Deviation N of Items 1.77191 REGRESSION /MISSING LISTWISE /STATISTICS COEFF OUTS CI R ANOVA CHANGE /CRITERIA=PIN(.05) POUT(.lO) /NOORIGIN /DEPENDENT p /METHOD=ENTER capacity character capital i i /METHOD=ENTER i i 87 APPENDIX IV Regression [DataSetl] F:\DATA THESIS.sav Variables Entered/Removed(b) Variables Entered Model Variables Removed Method capital, character, capacity( a) Enter Age of business, Main business line, Type of Enterprise, Scale of business( a) ! Enter I i a All requested vanables entered b Dependent Variable: When enterprise wantto borrow from banks, the ability getting loan is high Model Summary Model R R Square Adjusted R Square Std Error of the Estimate Change Statistics R Square Change F Change i Sig F Cha'!ge df2 df1 557(a) 311 290 82669 311 14.731 98 000 596(b) 355 307 81667 044 1.605 94 180 , a Predictors: (Constant), capital, character, capac1ty b Predictors: (Constant), capital, character, capacity, Age of business, Main business line, Type of Enterprise, Scale of business ANOVA(c) Model Sum of Squares Regression 30.202 Mean Square df 10.067 683 Residual 66.974 98 Total 97.176 101 Regression 34.483 4.926 Residual 62.693 94 667 Total 97.176 101 F Sig 14.731 OOO(a) 7.386 OOO(b) a Predictors: (Constant), cap1tal, character, capac1ty b Predictors: (Constant), capital, character, capacity, Age of business, Main business line, Type of Enterprise, Scale of business c Dependent Variable: When enterprise want to borrow from banks, the ability getting loan is high 88 Coefficients( a) Model t Beta (Constant) 526 504 capacity 542 142 character Standardize d Coefficients Uristandardized Coefficients Std B Error 95% Confidence Interval forB Lower Upper Bound Bound Sig 1.043 300 -.475 1.526 364 3.817 000 260 824 331 112 283 2.967 004 110 553 capital -.039 082 -.040 -.482 631 (Constant) capacity character capital Type of Enterprise Age of business 438 522 297 -.027 790 146 118 082 351 254 -.028 554 3.571 2.522 -.333 581 001 013 740 -.202 -1.131 232 063 -.189 2.008 813 531 135 -.004 119 -.003 -.030 976 -.240 233 1.743 085 -.021 326 -.528 599 -.356 207 -.136 892 -.045 039 152 087 176 Scale of -.075 142 -.056 business Main business -.003 021 -.012 line a Dependent Variable: When enterprise want to borrow from banks, 123 the ability getting loan is high Excluded Variables(b) Model Type of Enterprise Age of business Beta In t Tolerance Tolerance -.077(a) Sig Partial Correlation Collinearity Statistics Tolerance Tolerance Tolerance -.857 393 -.087 879 207(a) 2.505 014 246 976 Scale of business -.154(a) -1.813 073 ".181 947 Main business line -.004(a) -.049 961 -.005 943 a Predictors 1n the Model: (Constant), capital, character, capac1ty b Dependent Variable: When enterprise want to borrow from banks, the ability getting loan is high 89 ... 2.2: Loan accumulated and weigh of loan in IPs, EPZs over total mount of loan in HCMC (by billion VN dong) Year Total loan in IPs, EPZs Weigh of loan in IPs, Total loan in HCMC EPZs over total loan. .. region 2.1.2 Indispensable of development scheme IPs & EPZs in Vietnam 2.2 Development situation of IPs & EPZs in HCM city 2.2.1 Historical of developing of IPs & EPZs in HCM city 2.2.2... situation of IPs & EPZs in HCM city 2.2.1 Historical of developing ofiPs & EPZs in HCM city After Law ofForeign Investment was issued and applied in 1987, the foreign capital investment increase