VCCI calls for lower loan rates for small firms

Hanoi (VNA) - The Vietnam Chamber of Commerce and Industry (VCCI) petitioned the Vietnam Banking Association on Sept 23 to discuss with its members the potential loan interest rate reduction for small enterprises.

Reducing loan interest rates is of great importance in the fight to curb
inflation and stabilise the economy by helping firms expand their business
and ensure social welfare, the VCCI said.

The chamber's recent survey stated that with the current common lending
interest rate hovering around 21 percent, over 73 percent of enterprises
surveyed agreed capital access presented their biggest challenge.

It also revealed that the remaining months of this year would see a great
demand for capital lending. Over 90 percent of household businesses had the
greatest demand for capital, followed by 81.5 percent of State-owned firms,
and 57.7 percent for foreign-invested firms.

Small and medium-sized enterprises (SMEs) were reported to have been hurt
the most by capital shortages due to limitations of scale and lack of
mortgaged assets.

SMEs have a great demand for capital for their production and trading
activities. However, bank loans are currently very difficult to obtain, said
Cao Si Kiem, chairman of the Vietnam SNEs Association.

In addition to capital shortages, SMEs faced three other key problems
including vocational training, business experience and equality, he said.
SMEs can only overcome these challenges if they have the Government's
support both in capital and administrative policy. In the current capital
shortage situation, Kiem suggested SMEs should focus their investment on
specific fields, avoid spreading investment