geo/viet-nam
To increase competitiveness SMEs are urged to join global value chains. According to the article, lack of quality supplier-buyer relations with multinationals is hindering SMEs access to electronics global value chains.
A World Bank report says only 300 Vietnamese firms are completely eligible to connect with the world’s production chains.
Commercial Joint Stock Bank (VP Bank) invested in Ho Thi Hai Ngan, a woman entrepreneur looking to expand her electronics shop.
With capital as one of the larger challenges faced by SMEs, women are challenged at a much larger rate when “lender biases,” according to the article, are being added to the picture. VP Bank decided to be the change and loaned Ngan $25,000; her company is now worth $400,000.
Facebook has launched #SheMeansBusiness in Vietnam. The initiative will run in partnership with the Vietnam Women Entrepreneur’s Council (VWEC) and the Vietnam Chamber of Commerce and Industry (VCCI), which supports women entrepreneurs through investment and technology development, training and capacity building.
Through a series of workshops, training sessions and online resources, #SheMeansBusiness aids women entrepreneurs with the knowledge, connections, skills and technology required to build and grow their business online.
Increased access to funding and new legislations are among the measures being rolled out by the Vietnamese government to support the country’s small- and medium-sized enterprises (SMEs).Late last month, the Ministry of Planning and Investment (MPI) announced four preferential loan programmes to be made available to SMEs this year under its SME Development Fund, formed in 2013.
This discussion of supporting micro, small and medium enterprises (MSMEs) centered on building systems to boost institutions’ confidence in lending to the sector; and the non-financial needs of MSMEs.
The $125 million loan is the largest a foreign organization has granted a local commercial bank this year. The financing arm of the World Bank has recently approved a loan package worth $125 million for Vietnamese commercial bank of VPBank to help micro and small and medium enterprises, export firms and businesses run by women. The finance package for VPBank is the largest loan the International Finance Corporation (IFC) has granted a Vietnamese bank this year. The package includes a five-year syndicate loan of $100 million from the IFC and a trade guarantee of up to $25 million.
Into its 17th year, The Asian Banker Summit 2016 will be held in Hanoi, Vietnam. As key economies in Asia, such as China, move ahead with structural reforms and transition to more sustainable long-term growth model; there is now renewed focus on ASEAN as an engine of future growth. How do investors view the potential of Vietnam?
The Asian Banker Summit 2016 will continue to include several conferences and workshops in one, catering to bankers, corporates, broker-dealers, treasurers and regulators.
These include:
Several weaknesses prevent SMEs from accessing long-term loans, Hoang Viet Trung, deputy director of the SBV branch in Ha Noi.
At the moment, most banks have plans to promote loans for SMEs. However, it is still difficult for them to access loans due to their lack of mortgage assets, weakness of financial abilities and low transparency levels. Most banks hesitate to give loans to SMEs due to the risk of instability, and because of how easily they can be affected by changes in the outside environment.
The Vietnam Bank for Social Policies (VBSP) is a government-owned bank that was established to provide credit and deposit services to poor people in Vietnam. The bank is also mandated to increase financial inclusion, promote microfinance and implement other programs for “poverty reduction and social stability.”
Last week, the Asian Development Bank (ADB) agreed to provide Vietnam with a US$50 million loan to foster the sustainable growth and development of small and medium-sized enterprises (SMEs) operating in the country. The loan will last 25 years with a low annual interest rate of 2 percent.
