Bank loans not accessible for 20 percent of local firms
Workers sort ballpoint pens at a Thien Long Production and Trading Co Ltd factory. (Photo: VNA)
Capital is a vital resource for a business to develop. Most local enterprises now have very high demand for capital funding in the short-, medium- and long-term, VCCI reported in a recent meeting.
Credit lending granted by financial institutions is an important channel, VCCI said. To help local companies approach those sources, the Government, ministries, related agencies and lenders must work on a comprehensive joint policy.
But due to the low quality of corporate governance and poor financial management, a large number of Vietnamese firms, mostly small- and medium-sized enterprises (SMEs), have not succeeded in winning loans from banks and financial institutions.
According to Nguyen Viet Hung from the Ministry of Finance’s Department of Banking and Financial Institutions, lending policies for SMEs are still limited and incomplete.
Some rules lag behind while some are not feasible, he said, adding that the financial capacity of banks and financial institutions is also limited.
SMEs have also remained unprofessional in corporate governance, financial management and risk management.
To help enterprises gain access to capital funding, the Ministry of Finance will continue working on the completion of recent policies, especially by cutting lending and collateral requirements.
Nguyen Xuan Bac from the State Bank of Vietnam’s credit department said the central bank will be proactive in managing fiscal and monetary policies.
Those actions will ensure inflation is controlled, and that interest rates and exchange rates are kept stable, he said.
The financial-banking system will continue to be overhauled and non-performing loans will be handled to make sure lending is always available for businesses, he added.
The central bank will keep reviewing its regulations to allow all economic sectors to access capital lending based on their capability of corporate governance and financial management, Bac said.
“Different lending channels will be made for local enterprises.”
According to Bac, new credit products will be developed to offer more choices for enterprises. Local authorities must connect banks and businesses to resolve problems for the business community.
The meeting was organised by the VCCI and the Ministry of Finance to discuss solutions to help Vietnamese firms resolve financial issues in the context of global integration.
Related News
Central bank starts huge credit package for social housing projects
14:42 | 04/04/2023 Finance
Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline
14:47 | 04/04/2023 Finance
Central bank cuts policy interest rates to spur growth
17:43 | 02/04/2023 Finance
Need to effectively use tools to prevent exchange rate risks in import and export field
10:32 | 02/04/2023 Import-Export
Latest News
Corporate bonds worth 1.1 billion USD issued in March
13:55 | 06/04/2023 Finance
Tax revenue is estimated at VND 426,922 billion in the first quarter
09:56 | 06/04/2023 Finance
In Q1, State revenue estimated to rise by 1.3%
13:28 | 04/04/2023 Finance
Consider raising the level of penalties to ensure fairness and transparency in the stock market
13:27 | 04/04/2023 Finance
More News
Ensure policies to attract investment when implementing global minimum tax
10:33 | 02/04/2023 Finance
SBV asks to issue revised decree on foreign ownership cap at Vietnamese banks
20:30 | 01/04/2023 Finance
Solutions to attract FDI when implementing the global minimum CIT
11:38 | 01/04/2023 Finance
Effective implementation of tax incentives as driving force for growth in trade turnover between Vietnam and Cuba
13:43 | 31/03/2023 Finance
Being many "hot" issues at the general meeting of shareholders of banks
09:24 | 30/03/2023 Finance
Bringing the policies on reducing land rent and water surface rent into life
15:41 | 29/03/2023 Finance
The more delayed the investment disbursement is, the more accumulated the capital expenditure will be
10:22 | 29/03/2023 Finance
Ministry of Finance summarizes the 10-year implementation of the Resolution of the 8th meeting of the 11th Central Committee
10:20 | 29/03/2023 Finance
Reduce operating interest rates to promptly support businesses
10:11 | 28/03/2023 Finance
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Corporate bonds worth 1.1 billion USD issued in March
13:55 | 06/04/2023 Finance
Tax revenue is estimated at VND 426,922 billion in the first quarter
09:56 | 06/04/2023 Finance
Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline
14:47 | 04/04/2023 Finance
Central bank starts huge credit package for social housing projects
14:42 | 04/04/2023 Finance
In Q1, State revenue estimated to rise by 1.3%
13:28 | 04/04/2023 Finance