Vietnam News, 18 June, 2015. City looks for ways to raise capital for SMEs.
An edited extract of the original article appears below.
HCM CITY (VNS) — Raising capital remains one of the biggest difficulties for companies, and so programmes that help connect businesses with capital sources play a very important role, a conference heard in HCM City yesterday.
Pham Ngoc Hung, deputy chairman of the HCM City Union of Business Associations (HUBA), said Viet Nam is integrating deeply with the global economy with a series of free trade agreements either signed or under negotiation.
But a recent study by HUBA came up with the extremely worrying result that 65 per cent of local firms are vague about the opportunities and challenges thrown up by FTAs, he said.
Asked what was the biggest difficulty in the context of deeper integration, companies said it was capital followed by trade barriers, he said.
Nguyen Manh Tue, deputy head of the Department of Planning and Investment’s economic sub-department, said there are around 150,000 businesses in HCM City, of which 97 per cent are small and medium-sized enterprises…
The city does surveys on businesses’ demand for credit and organises programmes to connect businesses and credit institutions, he said, adding that banks have signed agreements to provide loans worth more than VND120 trillion (US$5.5 billion) to businesses in the past three years.
It also provides VND100 million ($4,591) for each project in the agricultural sector under a resolution issued on June 8, he said…
However, several attending business executives said SMEs face difficulties in getting bank loans…
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