To accelerate private enterprises: Unblocking preferential capital sources

loan-customer-consultation(1).jpg — The private economic sector is in dire need of abundant, preferential loans to promote production and business activities. Photo: HA KIEN

"Secret" capital

After nearly 15 years of establishment, Vu Cong One Member Co., Ltd. (Nam Sach) has affirmed its solid position in the field of agricultural production and processing. The company is a customer of many domestic partners and exports to Korea and Japan. Therefore, the company's demand for capital to expand its production scale is very large.

Mr. Vu Dinh Bay, the company's director, frankly admitted: "The company is producing and doing business very well, but is still struggling to find investment sources. Accessing preferential credit packages is still difficult due to strict conditions in the loan process. Many times, opportunities come but there is no capital so we have to miss them."

Vu Cong One Member Co., Ltd. specializes in producing dried agricultural products. The company undertakes the purchase and sale of agricultural products such as onions, garlic, carrots, ginger, okra, etc. for farmers in and outside the province. The company has built a stable raw material area and maintains many long-term production and business contracts. The company believes that it can continue to develop and expand its market in the future. However, capital is still a major barrier.

Mr. Bay analyzed: “Currently, credit institutions only base on existing assets to assess and consider lending capital to enterprises. However, these assets only stop at land use rights certificates and assets on land. Meanwhile, enterprises also have machinery, factories, production areas and commitments to form assets in the future. Therefore, loan policies need to be more open for enterprises to easily access.”

construction-company(1).jpg — Vu Cong One Member Co., Ltd. has the opportunity to develop and expand the market, but access to capital is still limited.

SOHA Construction Investment Company Limited (Thanh Ha) was established in 2021 as a result of the startup idea of a group of young engineers. Instead of working for a salary, this group of engineers boldly established a business, entering the construction and interior design market. As a young, unknown enterprise, the company has clearly outlined its business strategy and development roadmap. In the first 3 years since its establishment, the company enjoyed preferential tax policies. However, this was the time when the Covid-19 epidemic broke out and the effects after the epidemic made the company operate ineffectively. Currently, the enterprise is gradually catching up with the market, but capital is still a difficult problem.

According to Mr. Vu Thanh Liem, Deputy Director of the company, for newly established enterprises, accessing credit capital is not simple. Even if they can borrow preferential capital, the period of enjoying preferential interest rates is very short, only 1-2 years, so enterprises cannot rotate investments.

“We have big projects and contracts, but we are still hesitant and considering because of limited capital mobilization. We hope that credit policies for businesses will be loosened,” Mr. Liem expressed his opinion.

Diversified preferential capital sources

Private enterprises are an important driving force in economic development, but the resources for enterprises to boost production and business have not been thoroughly resolved. In fact, preferential capital policies for enterprises have been implemented but have not brought about the desired results. Loan procedures are complicated, appraisal takes time while the loan limit is low, and the preferential interest rate period is short. Therefore, the recent Resolution No. 68-NQ/TW of the Politburo on private economic development has identified promoting and diversifying capital sources as an important solution to promote the development of private enterprises.

private-enterprises-need-capital-priority(1).jpg — Resolution 68-NQ/TW of the Politburo on private economic development is expected to create a breakthrough in preferential capital sources, promoting the private economic sector to make a breakthrough.

Starting from a business household, Tien Nam One Member Co., Ltd. (Hai Duong City) received a lot of support in business registration procedures, tax exemptions, etc. However, Ms. Vu Thi Thu, the company representative, said that with investment capital alone, there should be incentives and support to "get the job done" so that businesses do not have to both produce and worry about paying bank interest. For business households that develop into enterprises, maximum capital conditions need to be created. Because changing the operating model means having to reorganize production and business in the direction of increasing investment scale and expanding the market. When there is a capital support, businesses will proactively calculate and orient investment appropriately and optimally, limiting risks and impacts from the outside.

Ms. Thu commented: “It is undeniable that there are more and more credit packages for businesses. However, the loan limit is still limited and the incentives are not as expected. Micro, small and medium enterprises always expect a flexible preferential loan flow, creating support for gradual growth. Support capital sources need to be diverse, with flexible conditions and procedures to help businesses easily access them.”

According to the representative of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) Hai Duong branch, private enterprises, cooperatives, and business households are always the key customer groups for any bank or credit institution. Currently, BIDV is implementing a short-term credit package with a loan balance of VND 450 billion to serve the capital needs of enterprises. The capital policy for private economic development according to Resolution 68-NQ/TW recently issued will be the key to opening the "door" of credit, creating an abundant source of preferential capital to help business households and enterprises promote production and business. However, enterprises should not just passively wait for support capital but should proactively build development plans and strategies to strengthen the level of trust. From there, the appraisal of disbursement will be more convenient and simpler. Only then will the preferential credit package support enterprises to promote efficiency and create good growth.

Through discussions with representatives of associations and business associations in the province, it can be seen that the Hai Duong business community is placing high expectations on breakthroughs from Resolution 68-NQ/TW. In particular, the policies and solutions on capital are considered to be the most synchronous, comprehensive and thorough ever.

For micro, small and medium enterprises, as well as business households with the potential to develop into enterprises, the need to access preferential capital is extremely urgent. This is a group of subjects with limited financial potential, low competitiveness and very vulnerable to market fluctuations. Therefore, preferential capital will be a "lifebuoy", providing practical support, creating an important fulcrum to help them overcome difficulties, stand firm and develop in the market.

However, for the Resolution to soon come into effect, there needs to be synchronous and drastic participation of all levels and sectors. When capital flows are truly unblocked, the private economic sector will have the conditions to develop its potential, create strong momentum and make breakthroughs in the coming time.

STRONG

Source: https://baohaiduong.vn/de-doanh-nghiep-tu-nhan-but-toc-khoi-thong-nguon-von-uu-dai-413517.html