HA NOI (VNS)— Enterprises who wanted to access bank loans needed to actively demonstrate their operating capacity, efficiency of their business plans and their ability to pay loans.
The advice came from the Viet Nam Chamber of Commerce and Industry general secretary Pham Thi Thu Hang.
The lending interest rates were recently slashed to between 8-12 per cent – the level of the 2005-06 period. That meant interest rates were no longer hindering firm's access to bank loans, head of the State Bank of Viet Nam's Monetary Policy Department Nguyen Thi Hong said.
Each enterprise should restructure its business in an attempt to better convince banks about the feasibility of its projects as well as to prove its cash flows, she said.
Both enterprises and banks had encountered business difficulties, said VPBank general director Nguyen Duc Vinh.
"We are willing to lend to the firms but with certain conditions," he said.
Banks would take into account the firm's operating capacity, mortgage assets and specific plans for loan disbursement.
He emphasised the importance of more effective assistance from the State and sectors in order to bring banks and enterprises closer.
SME development fund
A fund for small and medium-sized enterprise (SME) development will be set up with a total charter capital of VND2 trillion (US$95 million).
The move aims to enhance the competitiveness of these enterprises and to create more jobs.
Functioning as a State financial organisation under the management of the Ministry of Planning and Investment, the non-profit fund is responsible for managing and using financial resources to support SME development.
To get the financial assistance, SMEs must meet a number of conditions, including having feasible production or business plans in line with the fund's list of priority areas.
The maximum loan for each project will not exceed VND30 billion ($1.4 million) and must be repaid within seven years. The establishment of the fund is part of a bigger programme on SME development in the 2011-15 period. — VNS