International Finance Corporation to help SMEs in Vietnam

CEO of the International Finance Corporation (IFC) Pham Thi Thanh Huyen said that IFC has designed a support program to provide loans with low interest rate for small and medium enterprises in Vietnam.

79 percent of Vietnamese small and medium enterprises (SMEs) in the Southeast Asian country generate between 50 percent of the country’s jobs and constitute approximately 40 percent of its gross domestic product.
Notwithstanding SMEs' contribution to the country's GDP, IFC’s recent survey has shown that 30 percent of SMEs get access to bank loans. Firm owners complained that commercial banks required assets and feasible production project for mortgage loans; therefore, businesses are short of capital for production.
Eligible businesses for IFC’s loans are those which take part in IFC’s global supply chains. In reality, small and medium businesses in global supply chains have received good support
Deputy Director of the Ho Chi Minh City Center of Support Industries Development Le Nguyen Duy Oanh advised business owners improve their production by themselves to meeting requirements of the global supply chains before receiving supports from financial credit organizations.

By Minh Xuan - Translated by Anh Quan

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