Workers sort ballpoint pens at a Thien Long Production and Trading Co Ltd factory.

Capital is a vital resource for a business to develop. Most local enterprises now have very high demand for capital funding in the short-, medium- and long-term, VCCI reported in a meeting on Friday.

Credit lending granted by financial institutions is an important channel, VCCI said. To help local companies approach those sources, the Government, ministries, related agencies and lenders must work on a comprehensive joint policy.

But due to the low quality of corporate governance and poor financial management, a large number of Vietnamese firms, mostly small- and medium-sized enterprises (SMEs), have not succeeded in winning loans from banks and financial institutions.

According to Nguyen Viet Hung from the Ministry of Finance’s Department of Banking and Financial Institutions, lending policies for SMEs are still limited and incomplete.

Some rules lag behind while some are not feasible, he said, adding that the financial capacity of banks and financial institutions is also limited.

SMEs have also remained unprofessional in corporate governance, financial management and risk management.

To help enterprises gain access to capital funding, the Ministry of Finance will continue working on the completion of recent policies, especially by cutting lending and collateral requirements.

Nguyen Xuan Bac from the State Bank of Viet Nam’s credit department said the central bank will be proactive in managing fiscal and monetary policies.

Those actions will ensure inflation is controlled, and that interest rates and exchange rates are kept stable, he said.

The financial-banking system will continue to be overhauled and non-performing loans will be handled to make sure lending is always available for businesses, he added.

The central bank will keep reviewing its regulations to allow all economic sectors to access capital lending based on their capability of corporate governance and financial management, Bac said.

“Different lending channels will be made for local enterprises.”

According to Bac, new credit products will be developed to offer more choices for enterprises. Local authorities must connect banks and businesses to resolve problems for the business community.

The meeting was organised by the VCCI and the Ministry of Finance to discuss solutions to help Vietnamese firms resolve financial issues in the context of global integration. — VNS