Hanoi seeks ways to boost support industries

14:38 | 17/12/2017 Industry

(VEN) - The Law on Support for Small- and Medium-sized Enterprises (SMEs) was passed by the National Assembly and came into effect on August 1, 2017, regulating credit access for SMEs. Support industry businesses are among the leading beneficiaries of this policy.

hanoi seeks ways to boost support industries

According to the Hanoi Supporting Industries Business Association, Vietnam’s support industry businesses face many difficulties due to limited resources, requiring solutions in terms of capital, financial incentives and infrastructure to increase their investment in production and technologies.

Commercial banks have also focused on supporting these SMEs, among them the Vietnam Development Bank (VDB), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), and TPBank.

Nguyen Van, deputy chairman of the Hanoi Supporting Industries Business Association, said easier credit access has resulted in positive effects, helping support industry businesses stabilize production, diversify products and improve quality. The law has enabled businesses to participate in the global value chain of multinational corporations operating in Vietnam, such as Canon, Toyota, Yamaha, Samsung, Ford, and Nidec.

However complex procedures, lack of collateral assets, small business scale and poor financial management are seen as barriers to SMEs in accessing credit.

Although the government and ministries have implemented policies and programs to support finance, credit, technology, trade promotion and human resource development for support industry businesses, the results of these efforts have not met the requirements.

Mac Quoc Anh, deputy chairman and general secretary of the Hanoi Small and Medium Enterprises Association, said there should be more open mechanisms to help support industry businesses easily access capital, creating favorable conditions for them to promote its development and improve competitiveness.

Many support industry businesses have proposed to the relevant agencies that they provide financial support with preferential interest rates and flexible terms in accordance with the specific state of each enterprise. In addition, they are asking that regulations on collateral be reviewed to help SMEs easily access capital. The establishment of a fund dedicated to support industry businesses is also mentioned as necessary.

The state should allow private support industry businesses to access Official Development Assistance (ODA) loans to buy equipment, machinery and technology from countries such as Japan, the Republic of Korea and other advanced countries, contributing to increased production capacity and promoting integration into the global production chain.

Lan Anh