Meeting seeks to boost financial solutions for businesses

14:42 | 13/05/2019 Economy

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.

At the meeting - Photo: VNA

Capital is one of the most indispensable resources 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 by the Vietnam Chamber of Commerce and Industry (VCCI).

The VCCI said due to weakness in corporate governance and a lack of transparency in financial activities, many companies, especially small- and medium-sized enterprises (SMEs), have failed to persuade banks and other credit organisations to provide credit for them.

It added that in order to help firms access credit sources, concerted solutions need to be carried out by companies themselves, as well as credit organisations, ministries, and sectors.

MA Nguyen Viet Hung from the Ministry of Finance’s Department of Banking and Financial Institutions pointed out several of the shortcomings in capital support mechanisms and policies for SMEs. Some mechanisms and policies are lagging behind reality, while others are simply not really feasible. Meanwhile, the capacity of financial institutions remains modest.

The finance ministry will continue working to fine-tune policies supporting businesses’ access to credit from state-owned financial institutions. It will also simplify lending procedures, borrowing conditions, and collateral, he noted.

Meanwhile, the State Bank of Vietnam (SBV) will continue the current proactive and flexible monetary policy that is connected with the fiscal policy and other macro-economic policies, thereby helping control inflation and ensure stable interest and exchange rates.

The credit organisation restructuring and non-performing loan settlement will also be promoted so as to foster credit sources for the economy, according to Nguyen Xuan Bac from the SBV’s credit department.

In addition, the central bank will overhaul the legal framework to create more favourable conditions for all economic sectors to access loans, develop new credit products and banking services, and work with local authorities to boost companies’ credit relations with banks, he added.