Nearly 400 business representatives attended a seminar titled “HFIC & Credit Guarantee Fund – Capital Access for Startups and SMEs” held on August 25 by the Ho Chi Minh City Department of Science and Technology in coordination with the Ho Chi Minh City Finance and Investment State-owned Company (HFIC) and the city's Credit Guarantee Fund for Small and Medium-sized Enterprises.
Speaking at the seminar, Pham Huynh Quang Hieu, Deputy Director of the Ho Chi Minh City Department of Science and Technology, said that the city was implementing multiple channels and interest-rate support policies for businesses, with HFIC serving as the focal agency under Resolution No. 09/2023/NQ-HDND dated September 19, 2023, on interest-rate support for projects, particularly those in the city's priority sectors.
However, the results have yet to match the potential of the policies or expectations. The number of businesses actually accessing interest-rate support and credit guarantee programs remains modest compared with the huge demand among startups and SMEs in the city, he said.
"Capital remains the biggest challenge for startups and SMEs,” he said. Most businesses still depend on collateral to access loans, while startups often hold their greatest value in technology, intellectual property and human resources, assets that traditional lenders struggle to assess.
He said the issue was not a shortage of support policies, but the difficulty businesses face in accessing available capital because of gaps in information, procedures and application preparation.
At the seminar, businesses called on the city to clarify lending mechanisms for projects ranging from brand-building to production and business expansion.
They also requested more specific guidance on lending conditions, collateral requirements, legal documents, disbursement procedures and application timelines.
Responding to questions about procedures for obtaining interest-supported loans of up to VND200 billion (US$7.7 million) per project or credit guarantees covering up to 100 percent of a loan under Resolution 09, Nguyen Ha Lam, Deputy Head of HFIC’s Planning and Development Research Division, said projects must fall within eligible sectors and meet registration deadlines to qualify.
HFIC will assess project efficiency and borrowers’ repayment capacity before considering direct lending or syndicated loans, with HFIC acting as the lead arranger, Mr. Nguyen Ha Lam said.
For startups and innovative businesses lacking traditional collateral, the credit guarantee mechanism can cover up to 100 percent of a loan. However, businesses must meet requirements related to equity capital, financial history and tax obligations.
According to HFIC, businesses should have equity equivalent to at least 15 percent to 20 percent of the project's value and no overdue tax liabilities.
Businesses are required to make principal repayments in installments under their loan agreements. For financing exceeding VND200 billion (US$7.7 million) or loan terms longer than seven years, investors must arrange the additional funding.
