New credit push aims to widen SME access to capital
Since August a credit programme targeting economic growth drivers and small and medium sized enterprises has been rolled out opening up an additional channel for businesses and sectors identified as new growth engines to access preferential funding
A new credit initiative aims to enhance access to capital for small- and medium-sized enterprises (SMEs) in Vietnam. According to a FiinGroup representative, only 20.5 percent of SMEs currently hold bank loans, with even fewer micro enterprises and medium- or low-risk businesses taking advantage of credit. The State Bank of Vietnam (SBV) has enlisted 19 commercial banks to participate in the program, offering around $16.28 billion in credit with interest rates below the lending rates of each bank.
However, Nghi, CEO of Thien Minh Rating (TMR), highlights that many SMEs still encounter challenges in accessing capital, citing factors like financial data limitations, corporate governance issues, and the time-consuming due diligence process. TMR has proposed digitizing and standardizing corporate documentation, incorporating independent credit ratings to create a digital passport.
This approach aims to streamline the due diligence process and reduce transaction costs. The SBV has also adjusted capital rules and special credit treatment for strategic projects, with banks, property developers, and infrastructure companies set to benefit the most.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
