HCMC takes heed of assistance for small, medium-sized enterprises’ development

Relevant competent agencies in Ho Chi Minh City will take heed of assistance for small and medium-sized enterprises’ development, that’s what attendees of a television program organized by Ho Chi Minh City People's Council and Ho Chi Minh City Television yesterday.

Attendees at the Listening and Exchange program (Photo: SGGP)
Attendees at the Listening and Exchange program (Photo: SGGP)

Attendees at the Listening and Exchange program centered around ways to help small and medium-sized enterprises (SMEs).

Currently, SMEs in HCMC have mainly made up 98 percent of 450,000 operating local businesses. From 2015 till now, Ho Chi Minh City has issued 20 policies to support businesses in many fields such as policies of accessing credit package, supporting human resource development, and economic stimulus.

In fact, most of small and medium-sized businesses without mortgaged assets for bank loans and business strategies; therefore, they hardly access to commercial banks whereas credit security fund has not well worked on these firms without mortgaged assets, Deputy Head of the Economic and Budget Department under the Ho Chi Minh City People's Council Cao Thanh Binh said.

Additionally, Chairman of the HCMC Union of Business Association Chu Tien Dung said many businesses want to participate in programs of supporting industrial development and technological innovation. However, administrative procedures are still complicated.

Following businesspersons’ complaint of accessing bank loans, Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam - Ho Chi Minh City branch, pointed out several reasons why enterprises can’t access to bank loans. Specifically, businesses must have feasible production plan, transparent finance sources and mortgaged assets, he stressed.

Banks have found many ways to remove barriers and simplify the loan process to benefit businesses, Mr. Minh continued. For instance, the banks have worked with the Department of Industry and Trade and the HCMC Union of Business Association to provide unsecured loans and businesses can ask for loan by mortgaging cash flow and revenue collection sources.

He emphasized that banks will be fined if they do not assist any organizations or individuals that are eligible for loans.

Deputy Director of Ho Chi Minh City Department of Industry and Trade Nguyen Phuong Dong shared that the department will build a data portal for businesses to increase opportunities of cooperation for the future of work.

The industry and trade sector has made effort to maintain production and business and ensure goods supplies for coming Tet holidays.

Meanwhile, according to Director of HCMC Department of Planning and Investment Le Thi Huynh Mai, the department will continue carrying out administrative reform programs for enterprises’ satisfaction when businessperson complete business registration.

Additionally, the Department will coordinate with related agencies to carry out commercial promotion programs, seek business investment opportunities and aid strategies for supply and demand connections.