The Ministry of Planning and Investment (MPI) held a ceremony ceremony in Hanoi on April 22 to launch a fund for small and medium-sized enterprises (SMEs) development with total charter capital of 2,000 billion VND (89.75 million USD).
The fund, which is functioned as a state-owned financial organisation under the MPI, is responsible for managing and using financial resources while outlining policies as well as implementing international cooperation activities to support SME development.
SMEs, which are established and operate in Vietnam in line with the country’s regulations, are able to receive support from the fund.
The fund gives commercial banks a mandate to loan to SMEs at a preferential interest rate of 5 percent for short-term borrowing and 7 percent for medium and long-term credits.
Speaking at the launching ceremony, Deputy Minister of Planning and Investment Dang Huy Dong said SMEs are the backbone and driving force of the economy, however, they have faced tremendous challenges such as an opaque business environment, a shortage of high-quality labourers and a lack of capital for start-ups and business expansion.
Deputy Minister Dong shared that the establishment of the fund shows the determination of the Government and the ministry to develop the private economic sector, giving momentum to the nation’s economy development.
Director of the fund Hoang Thi Hong said that the fund aims to enhance the competitiveness of enterprises through supporting them in developing competitive and environmentally friendly products, improving technical equipment and fine-tuning business management competence.
At the ceremony, the fund also inked a cooperation agreement with mandated commercial banks in 2016.
At the launching ceremony.
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SMEs, which are established and operate in Vietnam in line with the country’s regulations, are able to receive support from the fund.
The fund gives commercial banks a mandate to loan to SMEs at a preferential interest rate of 5 percent for short-term borrowing and 7 percent for medium and long-term credits.
Speaking at the launching ceremony, Deputy Minister of Planning and Investment Dang Huy Dong said SMEs are the backbone and driving force of the economy, however, they have faced tremendous challenges such as an opaque business environment, a shortage of high-quality labourers and a lack of capital for start-ups and business expansion.
Deputy Minister Dong shared that the establishment of the fund shows the determination of the Government and the ministry to develop the private economic sector, giving momentum to the nation’s economy development.
Director of the fund Hoang Thi Hong said that the fund aims to enhance the competitiveness of enterprises through supporting them in developing competitive and environmentally friendly products, improving technical equipment and fine-tuning business management competence.
At the ceremony, the fund also inked a cooperation agreement with mandated commercial banks in 2016.
