More central bank policies to help SMEs hinh anh 1Illustrative image (Photo:

Hanoi (VNA) State Bank of Vietnam would further formulate policies to support efficient small- and medium-sized enterprises and those manufacturing and exporting products, Director of SBV's Credit Department Nguyen Tien Dong said.

Seeing the significant role being played by small- and medium-sized enterprises (SMEs) in the economy, which account for 97 percent of the existing enterprises, Vietnam has already issued policies offering preferential loans to SMEs. Lending to SMEs accounts for roughly 25 percent of the economy's total outstanding loans.

Still, SMEs found it difficult to access credit from banks. A recent survey by the Vietnam Chamber of Commerce and Industry found that high interest rates, no assets available for mortgage, complicated procedures and bad debts, besides unfeasible business plans were among the reasons that caused difficulties in accessing credit.

Dong said policies would be issued to direct capital flow to SMEs that are run efficiently and those directly producing or exporting goods. Preferential policies would especially be offered to businesses in support industries, agricultural and rural sectors, those applying hi-tech and those in remote areas.

Experts said more credit for SMEs would not only ensure efficiency, safety and sustainable development of credit institutions' operations, but also help SMEs to exploit resources for development.

At a recent interpellation, Minister of Planning and Investment Bui Quang Vinh said together with the amended laws on investment and enterprise, the ministry had proposed to the Government a new law on supporting SMEs to be put into consideration.

The legalisation of support to SMEs is expected to ensure stronger development of SMEs, which contribute 40 percent of the country's gross domestic product and employ 51 percent of labour.-VNA