MBBank ranks among Vietnam's leading lenders for SME working capital in key industries

Military Bank (MB) has emerged as one of Vietnam’s leading providers of working capital financing for small and medium-sized enterprises (SMEs) operating in key economic sectors, according to National Credit Information Center (CIC) data.

The bank ranked No.1 in short-term lending outstanding balances for the pharmaceutical-medical equipment sector and the electrical equipment industry, while also placing among the top four lenders in major sectors including construction, mechanical engineering, consumer goods and plastics.

Cash-flow based financing model

Unlike traditional lending models that rely heavily on collateral, MB said it has adopted a financing approach centred on business cash flows and value chains, combined with flexible collateral structures tailored to each industry.

For pharmaceutical and medical equipment companies, the bank provides financing solutions based on production plans, purchase orders, and cash-flow projections.

Services include contract performance guarantees, advance payment guarantees linked to tender awards, letters of credit, and factoring services covering up to 100% of invoice values.

In the electrical equipment sector, MB said it supports businesses throughout project lifecycles and production cycles, offering credit limits tied to project implementation, production planning, and sales cash flows. Based on business capacity and operating plans, the bank can finance up to 100% of working capital requirements with collateral support.

The approach allows companies to access financing aligned with actual project progress and continuous operating cycles, helping improve capital efficiency.

Targeting sectors with complex funding needs

Industry analysts say both the pharmaceutical-medical equipment and electrical equipment sectors require specialized financing solutions due to their large scale and complex cash-flow structures.

Pharmaceutical and medical equipment companies face long payment cycles, often ranging from 90 to 120 days from hospitals and insurers, while still needing significant capital for imports and inventory storage.

Meanwhile, electrical equipment firms are under pressure from long project cycles, volatile raw material prices and rising funding demand linked to Vietnam’s Power Development Plan VIII and renewable energy expansion.

MB’s leading market share in both sectors highlights not only its lending scale but also its ability to design industry-specific financial solutions, analysts said.

Expanding presence across major industries

Beyond its leading sectors, MB is also strengthening its position in industries with large and dynamic SME communities.

In construction, where demand is driven by Vietnam’s infrastructure expansion and public investment plans, businesses face heavy upfront capital requirements, long implementation timelines, and risks tied to raw material costs and land clearance delays.

MB said it supports construction companies through guarantees, loans and cash-flow management solutions tailored to different project stages.

The bank has also expanded financing for mechanical engineering firms, which depend heavily on imported machinery, steel and industrial components from markets such as China, Japan and South Korea.

In consumer goods and plastics, MB said it provides financing solutions adapted to seasonal demand fluctuations, rising competition, e-commerce expansion, and volatility in raw material prices.

Role of banks evolving for SMEs

According to MB representatives, SME financing is no longer only about whether businesses can access loans, but whether funding structures match actual cash flows and operational needs.

As SMEs continue to account for a large share of Vietnam’s economy while facing limitations in collateral and traditional credit access, financing models based on operational data and cash-flow analysis are becoming increasingly important.

MB said its rankings in several key sectors demonstrate a broader shift in banking competition within the SME segment, with lenders focusing not only on loan size but also on product quality and industry-specific expertise.

By maintaining leading positions in sectors with complex financial requirements, the bank aims to strengthen its role as a long-term financial partner for Vietnamese SMEs, it said.