Illustrative image (Source: internet) HCM City (VNA) – A workshop was held in Ho Chi Minh City on November 2 to discussmeasures to further promote the development of Vietnam’s supply chain financing market in the digital age.
The event, jointly organisedby the APEC Business Advisory Council (ABAC) and the Ministry of Planningand Investment (MoPI), was part of activities for the “Upgrading micro-, small-, and medium-sized enterprises (MSMEs)’s access to finance in the digital age” project.
Experts focused theirdiscussions on financial supply chains and financial services in the linkagebetween foreign investment firms and local suppliers.
According to CEO of BCR Publishing Ltd Michael Bickers, financial support for supplychains can be understood as a form of supplychain financing before factoring.
At present, cross-border supply chain financing efforts are underway to limitthe complexity of administrative procedures and reduce the time spent waitingfor administrative handling procedures, making use of digitisation technology,he said.
Technology can help to create tremendous influence and progress, enabling thelaunch of a smooth supply chain financingprogramme, while MSMEs are also able to access the programmeeasier and faster, he added.
Statistics show that inVietnam, more and more lenders, leading companies, buyers, suppliers, andservice providers are starting to take part in business and supply chainfinancing activities more seriously.
However, the challenge forthe field are issues related to the business and investment environment,knowledge, experience, and technological solutions in digitising trade financesand supply chains in the region, as well as in the global market.
According to Nguyen Hoa Cuong, Deputy Director of the MoPI’s Department of EnterpriseDevelopment, Vietnam has been implementing a strategic plan on developingdomestic supporting industries, with the aim of meeting 70 percent of the demandby 2030.
Ministries and sectors have taken measures to link foreign direct investmententerprises with local SMEs and suppliers, he said, adding that the bankingsystem has been increasingly involved in not only the supply chain financing,but also in infrastructure investment.
This shows that technology has promoted change, improved perception, andbrought opportunities to market development, he noted.
Meanwhile, Jinchang Lai, an expert of the World Bank, underlined the importantrole played by governments in promoting the supply chain financing market.
Governments of many countrieshave been engaging with the market to improve the competitiveness of domesticsupply chains, in particular making it easier for SMEs to join global supplychains, he said.
Promoting the supply chain financing market is also a solution to boostingcapital flows into production and business, contributing to further economicgrowth, he noted.
Participants said thedevelopment of the market in Vietnam is important, stressing that it isnecessary to build initiatives and specific policies to boost this kind of activity.
The Vietnamese Government should provide specific regulations and guidelines tocreate a legal basis for entities, such as banks or different economic sectorsto participate in the supply chain financing market, the suggested.
Vuong Thi Huyen, Deputy General Director of Vietnam International CommercialJoint Stock Bank (VIB), said that the market in Vietnam is still modest, inneed of motivation to be pushed forward, especially SMEs.
Participants said in theAsia-Pacific region, some types of electronic finance platforms have proven tobe valuable to strengthening the link among members of supply chains and towardsincreasing the ability to attract financial service providers.
This is a trend that will create a driving force to support the development ofenterprises in both quantity and quality, in accordance with the target set bythe Vietnamese Government for the next few years.–VNA
The event, jointly organisedby the APEC Business Advisory Council (ABAC) and the Ministry of Planningand Investment (MoPI), was part of activities for the “Upgrading micro-, small-, and medium-sized enterprises (MSMEs)’s access to finance in the digital age” project.
Experts focused theirdiscussions on financial supply chains and financial services in the linkagebetween foreign investment firms and local suppliers.
According to CEO of BCR Publishing Ltd Michael Bickers, financial support for supplychains can be understood as a form of supplychain financing before factoring.
At present, cross-border supply chain financing efforts are underway to limitthe complexity of administrative procedures and reduce the time spent waitingfor administrative handling procedures, making use of digitisation technology,he said.
Technology can help to create tremendous influence and progress, enabling thelaunch of a smooth supply chain financingprogramme, while MSMEs are also able to access the programmeeasier and faster, he added.
Statistics show that inVietnam, more and more lenders, leading companies, buyers, suppliers, andservice providers are starting to take part in business and supply chainfinancing activities more seriously.
However, the challenge forthe field are issues related to the business and investment environment,knowledge, experience, and technological solutions in digitising trade financesand supply chains in the region, as well as in the global market.
According to Nguyen Hoa Cuong, Deputy Director of the MoPI’s Department of EnterpriseDevelopment, Vietnam has been implementing a strategic plan on developingdomestic supporting industries, with the aim of meeting 70 percent of the demandby 2030.
Ministries and sectors have taken measures to link foreign direct investmententerprises with local SMEs and suppliers, he said, adding that the bankingsystem has been increasingly involved in not only the supply chain financing,but also in infrastructure investment.
This shows that technology has promoted change, improved perception, andbrought opportunities to market development, he noted.
Meanwhile, Jinchang Lai, an expert of the World Bank, underlined the importantrole played by governments in promoting the supply chain financing market.
Governments of many countrieshave been engaging with the market to improve the competitiveness of domesticsupply chains, in particular making it easier for SMEs to join global supplychains, he said.
Promoting the supply chain financing market is also a solution to boostingcapital flows into production and business, contributing to further economicgrowth, he noted.
Participants said thedevelopment of the market in Vietnam is important, stressing that it isnecessary to build initiatives and specific policies to boost this kind of activity.
The Vietnamese Government should provide specific regulations and guidelines tocreate a legal basis for entities, such as banks or different economic sectorsto participate in the supply chain financing market, the suggested.
Vuong Thi Huyen, Deputy General Director of Vietnam International CommercialJoint Stock Bank (VIB), said that the market in Vietnam is still modest, inneed of motivation to be pushed forward, especially SMEs.
Participants said in theAsia-Pacific region, some types of electronic finance platforms have proven tobe valuable to strengthening the link among members of supply chains and towardsincreasing the ability to attract financial service providers.
This is a trend that will create a driving force to support the development ofenterprises in both quantity and quality, in accordance with the target set bythe Vietnamese Government for the next few years.–VNA
VNA
