A meeting held in Hanoi on May 10 discussed financial solutions for businesses amid the current context in which roughly 20 percent of firms in need of funding still have problems gaining access to credit. (Photo: VNA) Hanoi (VNA) – A meeting held in Hanoi on May 10discussed financial solutions for businesses amid the current context in whichroughly 20 percent of firms in need of funding still have problems gainingaccess to credit.
Capital is one of the most indispensableresources for business development, with credit playing a significant role.
Most businesses have great demand for loans,according to a survey of businesses in the Red River Delta region conducted bythe Vietnam Chamber of Commerce and Industry (VCCI).
The VCCI said due to weakness in corporategovernance and a lack of transparency in financial activities, many companies,especially small- and medium-sized enterprises (SMEs), have failed to persuadebanks and other credit organisations to provide credit for them.
It added that in order to help firms accesscredit sources, concerted solutions need to be carried out by companiesthemselves, as well as credit organisations, ministries, and sectors.
MA Nguyen Viet Hung from the Ministry of Finance’sDepartment of Banking and Financial Institutions pointed out several of theshortcomings in capital support mechanisms and policies for SMEs. Somemechanisms and policies are lagging behind reality, while others are simply notreally feasible. Meanwhile, the capacity of financial institutions remainsmodest.
The finance ministry will continue working tofine-tune policies supporting businesses’ access to credit from state-ownedfinancial institutions. It will also simplify lending procedures, borrowingconditions, and collateral, he noted.
Meanwhile, the State Bank of Vietnam (SBV) willcontinue the current proactive and flexible monetary policy that is connectedwith the fiscal policy and other macro-economic policies, thereby helpingcontrol inflation and ensure stable interest and exchange rates.
The credit organisation restructuring andnon-performing loan settlement will also be promoted so as to foster creditsources for the economy, according to Nguyen Xuan Bac from the SBV’s credit department.
In addition, the central bank will overhaul thelegal framework to create more favourable conditions for all economic sectorsto access loans, develop new credit products and banking services, and workwith local authorities to boost companies’ credit relations with banks, headded.–VNA
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