HANOI NATIONAL UNIVERSITY
INTERNATIONAL SCHOOL
=============
NGUYEN KHANH VAN
FACTORS AFFECTING THE CHOICE OF BANKS FOR
LOANS: CASE OF SMES IN HANOI
Major: Financial Management
Code: 8340202.01QTD
Supervisor: Dr. Le Quang Dung
Hanoi - 2025
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DECLARATION OF AUTHORSHIP
🙡🕮🙣
I hereby declare that this thesis was carried out by myself under the guidance
and supervision of Dr. Le Quang Dung; and that the work contained in it and the results
in it are true by the author and have not violated research ethics. The data and figures
presented in this thesis are for analysis, comments, and evaluations from various
resources by my own work and have been duly acknowledged in the reference part.
In addition, other comments, reviews and data used by other authors, and
organizations have been acknowledged and explicitly cited.
I will take full responsibility for any fraud detected in my thesis.
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ACKNOWLEDGMENTS
I would like to express my sincere thanks to the Postgraduate Curriculum of the
International School - Hanoi National University, the teachers of the International
School - Hanoi National University for helping me prepare myself with knowledge
and create the most favorable environment during the study and implementation of
this thesis.
With respect, I would like to express my gratitude to Dr. Le Quang Dung, who has
encouraged and guided me during the implementation of this research work. Also,
for the constructive criticism and valuable feedback, which contributed to enhancing
the quality of this research.
I extend my appreciation to my friends and colleagues, who have been supportive
throughout and provided a stimulating academic environment. Their encouragement
was immensely motivating during my challenging research journey.
Nguyen Khanh Van
March 2025
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TABLE OF CONTENTS
DECLARATION OF AUTHORSHIP ......................................................................... i
ACKNOWLEDGMENTS ........................................................................................... ii
TABLE OF CONTENTS ........................................................................................... iii
SUMMARY ............................................................................................................... vi
LIST OF ABBREVIATIONS .................................................................................... vii
LIST OF TABLES ................................................................................................... viii
LIST OF FIGURES .................................................................................................... ix
CHAPTER 1: INTRODUCTION ............................................................................ 1
1.1
The necessity of the research topic .................................................................... 1
1.2
Research objectives ............................................................................................ 2
1.3
Scope of study .................................................................................................... 2
1.4
Research methodology ....................................................................................... 2
1.5
Contribution of research ..................................................................................... 3
1.6
Research organization ........................................................................................ 3
CONCLUSION FOR CHAPTER 1 ............................................................................. 4
CHAPTER 2: LITERATURE REVIEW ................................................................ 5
2.1
Small and medium-sized enterprises concept ..................................................... 5
2.2
Theory of bank loans .......................................................................................... 6
2.3
Theories of consumer behavior and the purchase decision making process ...... 7
2.3.1
Theory of Consumer Behavior .................................................................... 7
2.3.2
Purchase decision making process ............................................................... 8
2.3.3
Deciding on the choice of bank of corporate customers .............................. 9
2.4
Previous studies related to corporate customers' choice of banks .................... 10
2.5
Factors affecting the choice of loan bank for SMEs customers ....................... 12
2.5.1
Competitive lending interest rates and fees ............................................... 13
2.5.2
Loan application processing speed ............................................................ 14
2.5.3
Appropriate loan policies ........................................................................... 15
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2.5.4
Service attitude of credit staff .................................................................... 16
2.5.5
Convenience in transactions ...................................................................... 17
2.5.6
Bank's reputation........................................................................................ 18
2.5.7
Third-party referrals ................................................................................... 18
CONCLUSION FOR CHAPTER 2 ........................................................................... 21
CHAPTER 3: RESEARCH METHODOLOGY .................................................. 22
3.1
Research framework ......................................................................................... 22
3.2
Research model ................................................................................................ 22
3.3
Research variable scale .................................................................................... 24
3.4
Quantitative study design ................................................................................. 27
3.4.1
Quantitative research objectives ................................................................ 27
3.4.2
Quantitative research sample ..................................................................... 27
3.4.3
Data collection methods ............................................................................. 28
3.4.4
Data analysis methodology ........................................................................ 30
CONCLUSION FOR CHAPTER 3 ........................................................................... 33
CHAPTER 4: ANALYSIS OF RESULTS ............................................................ 34
4.1
Sample description ........................................................................................... 34
4.1.1
Type of business ........................................................................................ 34
4.1.2
Number of years of operation of the enterprise ......................................... 35
4.1.3
Field of operation ....................................................................................... 36
4.1.4
Revenue of the enterprise........................................................................... 37
4.1.5
Labor scale ................................................................................................. 38
4.1.6
Enterprises borrowing capital at banks ...................................................... 39
4.2
Scale reliability assessment using Cronbach's Alpha confidence factor .......... 40
4.2.1
"Competitive interest rates and loan fees" Scale ........................................ 40
4.2.2
"Loan application processing speed” Scale ............................................... 40
4.2.3
"Appropriate loan policies” Scale .............................................................. 41
