Development fund offers financial aid to SMEs

Tuesday, 2017-03-14 05:44:11
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The support programme for SMEs’ innovation has a total funding of VND100 billion.
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NDO/VNA – The Small and Medium-sized Enterprise (SME) Development Fund of the Ministry of Industry and Trade has launched its financial aid packages for 2017 to continue assisting the firms which make up 97% of the total number of businesses in Vietnam.

These programmes loan SMEs a maximum of 70% of the acceptable investment capital for each project or business plan.

The support programme for SMEs’ innovation has a total funding of VND100 billion (US$4.38 million). It provides a maximum loan of VND10 billion (US$438,500) 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 (US$1.09 million).

Two packages worth VND180 billion (US$7.89 million) each are designed to assist businesses in agriculture, forestry and fisheries and those in processing and manufacturing industries, respectively. Maximum lending under the scheme for agriculture, forestry and fisheries is VND20 billion (US$877,000) and that for processing and manufacturing industries is VND25 billion (US$1.09 million).

The programmes are to be carried out through December 31, 2017, unless the SME Development Fund issues another announcement or until their funding is exhausted.

The interest rate is kept unchanged during the loan term at under 90% of that of commercial loans.

SMEs employ more than 50% of the workforce and contribute over 40% of the GDP in Vietnam. However, they are facing an array of obstacles in accessing credit, production sites and the market.