The State Bank proposes policy solutions to boost the emphasis on small and medium-sized businesses.

DNHN - According to the Governor of the State Bank, the current difficulties of small and medium-sized businesses must be thoroughly identified and evaluated to develop effective solutions.

During a meeting of the Government Standing Committee with the Executive Committee of the Association of Small and Medium Enterprises (SME) to discuss the operation of the association and ways to overcome difficulties for businesses, the Governor of the State Bank of Vietnam (SBV), Nguyen Thi Hong, proposed a variety of policy solutions to improve SME access to capital.

According to Governor Hong, the State Bank of Vietnam has issued a circular outlining guidelines for value chain lending and high-tech agricultural lending. However, to increase the efficacy of these solutions, it is necessary to fully identify and assess the challenges facing the small- and medium-sized business community so that appropriate and effective solutions can be developed.

Governor Hong proposed that the Government organize a conference to evaluate the overall implementation of SME support policies by the Law on Supporting Small and Medium-Sized Enterprises. He stated that each ministry, industry, and locality must develop solutions and policies and participate in the process of removing obstacles for SMEs. There is no single industry or policy that can solve all problems.

To improve SME access to capital, Governor Hong emphasized that these businesses must also overcome their limitations. This includes enhancing governance, financial position, and information transparency. These factors make it difficult for banks to make lending decisions. Governor Hong stated that bolstering governance capacity and improving the financial situation will assist SMEs in attracting the attention of credit institutions and expanding their access to loans.

Moreover, Governor Hong emphasized the significance of bolstering the operation of local credit guarantee funds. He stated that local governments know the most about the activities of local businesses, and that allocating resources to guarantee loans for small and medium-sized enterprises (SMEs) will facilitate credit growth and provide more support for SMEs.

Based on the identification of current difficulties and challenges, Governor Hong pledged that the SBV would continue to assist the government and ministries in removing obstacles for small and medium-sized enterprises (SMEs) and creating conditions for economic recovery and growth, especially for SMEs.

Because loan interest rates remain high and sometimes continue to rise, the SBV has decreased. To promote the growth of small and medium-sized enterprises (SMEs), the State Bank of Vietnam (SBV) has implemented a variety of policy measures to improve access to capital. Governor Nguyen Thi Hong of the State Bank of Vietnam proposed to the Government that a conference be held to evaluate comprehensively the implementation of SME support policies by the Law on Supporting Small and Medium-Sized Enterprises.

To increase the efficacy of solutions, Governor Hong emphasized the importance of accurately identifying and assessing the challenges faced by SMEs to find suitable solutions. In addition, he recommended that ministries, branches, and localities participate in resolving problems for SMEs, support one another unanimously, and not rely on a single industry or policy to solve all issues.

Additionally, Governor Hong emphasized the significance of SMEs enhancing their governance, financial position, and information transparency. These factors not only increase the likelihood of obtaining loans but also attract the attention of credit institutions. In addition, he emphasized the role of local credit guarantee funds in bolstering their activities to facilitate credit growth and assist SMEs.

Governor Hong affirmed that the SBV will continue to coordinate with the government and ministries to remove obstacles for SMEs while ensuring the stability and growth of the economy.

PV (t/h)