The headquarters of the State Bank of Vietnam (Photo: VNA) Hanoi (VNA) – Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong has suggested sectors and localities take more measures to remove difficulties facing small- and medium-sized enterprises (SMEs), stressing that policy solutions are needed to help businesses access capital.
Speaking at a meeting between permanent Government members and the executive committee of the Vietnam Association of Small and Medium Enterprises (SMEs) in Hanoi on July 6 to seek solutions to challenges facing SMEs, Hong recommended the Government organise a conference to review the implementation of support policies for SMEs in accordance with the Law on Support for SMEs, thus finding effective measures to address issues faced by enterprises.
The banking sector has set interest rate caps for loans in priority sectors, including SMEs, along with other policies, she noted.
SBV Governor Nguyen Thi Hong speaks at the conference. (Photo: VNA) Enhancing the effectiveness of local credit guarantee funds is crucial because local authorities have the best understanding of businesses' operation within their jurisdiction, Hong said, expressing her belief that the allocation of resources to guarantee loans for SMEs will help credit grow higher and SMEs receive more support.
To access capital, SMEs themselves need to address limitations that hinder banks from making lending decisions, and they should also improve their business management capabilities, financial situations, and enhance transparency in information reporting, Hong said.
The SBV will continue to closely follow the Government's guidance and economic and monetary developments, and coordinate with relevant ministries and sectors to help businesses and people in general, and SMEs in particular address difficulties, she stated.
According to the governor, the central bank has cut regulatory interest rates for four consecutive times since the beginning of this year.
The SBV is one of the few central banks in the world to reduce interest rates. Credit institutions are also actively reducing interest rates with the average interest rate decreasing by about 1% compared to the end of 2022.
The SBV regularly directs credit institutions to review loan procedures, thus making it easier for enterprises to access capital in accordance with legal provisions.
The central bank has made efforts to create favourable conditions for businesses to access loans through issuing Circular 02/2023/TT-NHNN on the rescheduling of debt payment and maintaining debt groups by credit institutions and foreign bank branches to support borrowers in difficulties.
Hong emphasised the importance of interaction between banks and businesses, saying that this will help identify difficulties and obstacles in order to collaboratively address them in compliance with legal regulations./.
