Development fund offers financial aid to SMEsFriday, March 17,2017
The Ministry of Planning and Investment has launched the Small- and Medium-sized Enterprise (SMEs) Development Fund for 2017.
Accordingly, these programmes loan SMEs a maximum of 70 per cent of the acceptable investment capital of each project or business plan.
The support programme for SMEs’ innovation has total funding of VND100 billion (US$4.39 million). It provides a maximum loan of VND10 billion and allows a 24-month grace period for the original loan. Another programme with the same funding targets companies involved in water supply, waste and wastewater management and treatment activities, with loans worth up to VND25 billion.
Two packages worth VND180 billion each are designed to assist businesses in agriculture, forestry and fisheries and those in processing and manufacturing industries.
Maximum lending under the scheme for agriculture, forestry and fisheries businesses is VND20 billion and that for processing and manufacturing industries is VND25 billion. The programmes will run until December 31 this year, or until their funding is used up or the SME Development Fund issues any other announcements. The interest rate will be kept unchanged during the loan term at under 90 per cent of that of commercial loans. The number of SMEs makes up 97 per cent of Viet Nam’s total businesses.
SMEs employ more than 50 per cent of the workforce and contribute over 40 per cent of the GDP in Viet Nam. However, they are facing an array of obstacles in accessing credit, production sites and market.