To promote supports for the development and operation of small and medium-sized enterprise (SME) community in Vietnam, the Ministry of Planning and Investment recently held the second meeting of the Executive Council for the SME Development Fund. This is an opportunity for experts and policymakers to review the legal framework, priority modes and preferences for SMEs.
Dang Huy Dong, Deputy Minister of Planning and Investment - Chairman of the Fund Management Board, said this second meeting focused on clarifying such contents as comments of the SME Development Fund on the second draft Circular on the list of priority fields and criteria for selecting support-prioritised entities; working plan of the Fund in 2015 and the 2015-2019 period; regulations on trustee lending of the Fund; and reports on operating results of the Fund in 2014 and the first six months of 2015.
Ms Hoang Thi Hong, Director of the SME Development Fund, said the second draft circular stated six mandatory selection criteria: Companies are established and operated under the Law on Enterprises, consisting of the following enterprise models: joint stock company, limited liability company, partnership company and private company; Companies have scales specified in Clause 1, Article 3 of Decree No. 56/2009/ND-CP of the Government dated June 30, 2009 on SME business development assistances; Companies have feasible production and business plans and projects, have the capability to repay loans as agreed, belong to the list of priority fields of the Fund specified in Article 4, Section 2 of the draft circular; Companies owners who implement production and business projects and plans have civil legal capacity and sufficient civil act capacity; Companies must ensure equity source for production and business projects and plans equalling at least 20 percent of the total investment for such projects and plans; Companies engaged in production and business operations must have plans for dealing with environmental pollution concerning their projects and meet State provisions on environmental protection and have measures for sustainable environmental protection.
As proposed by the Ministry of Planning and Investment, the launch of the SME Development Fund according to Decision No. 601/QD-TTg of the Prime Minister dated April 17, 2013 on supports for SMEs with viable business and production projects and plans belonging to priority areas, which are encouraged by the State and match operating purposes of the Fund to enhance the competitiveness of SMEs and help increase income and employment for workers is especially necessary. In addition, the Fund receives, manages and uses State-funded capital sources as well as foreign and domestic funds to finance SMEs; lends SMEs via the Vietnam Development Bank or commercial banks under the principle that banks self-determine and assume credit risks for loans for projects.
Mr Dang Huy Dong said the overarching goal of the Fund is to timely provide financial resources to promote the development of SMEs. However, banking and financial agencies should also have many measures to ease lending procedures, principles and conditions for SMEs. And, more importantly, a high consensus of coordinating agencies such as the State Bank of Vietnam, the Ministry of Finance, and the Ministry of Planning and Investment is necessary to facilitate the development of this type of business in the market economy.
Anh Phuong
Vietnamese
