Small and medium-sized enterprises having projection projects in the fields prioritised by the State will benefit from a development fund to raise their competitiveness.

The establishment of the small and medium-sized enterprises (SMEs) development fund was approved by the Prime Minister in his decision dated April 17.

Under the decision, the fund will have a charter capital of 2 trillion VND sourced from the State budget.

Managed by the Ministry of Planning and Investment, it will operate for non-profit purposes and enjoy exemption from tax and contributions to the State budget.

It is tasked to receive, manage, and use all financial resources, and domestic and foreign trust capital, in accordance with Vietnam ’s law, to generate funds to support the development of SMEs.

The fund will provide loans for eligible SMEs through the Vietnam Development Bank and other commercial banks.

The fund establishment is one of the solutions mapped out in a plan to spur SMEs development in the 2011-2015 period which was approved by the Prime Minister.-VNA