return icon

New projects ramp up SME benefits

As domestic small and medium-sized enterprises retain a large thirst for capital supply, foreign institutions are pouring support into those able to bounce back in 2022.

New projects ramp up SME benefits

Validus, TTC Group, and Do Ventures last week established a joint venture to deepen financial inclusion for small and medium-sized enterprises (SMEs). Nikhilesh Goel, co-founder and group CEO of digital financing platform Validus, said SMEs can increase their resiliency and recovery by ensuring that they have adequate cash flow to support business activities as the recovery picks up and new projects are kick-started.

“This will be a key driver in enabling them to capitalise on opportunities as access to short-term liquidity is critical in hiring new employees, procuring of raw materials and inventory, and supporting execution. Working capital will help them to proactively build capabilities to adapt to changing situations,” Goel added.

Validus intends to continue to extend its core product offerings, including supply chain financing products and working capital products tailored to the needs of the local market.

“Additionally, we will be working on bespoke products to offer to our venture partners’ ecosystems. We are also building innovative products in partnership with other digital platforms within this ecosystem that are driven by data-points extending across areas including procurement, trade, and logistics, among others,” Goel shared.

Among them, TTC boasts a large ecosystem of SMEs across the energy, real estate, sugarcane, and hospitality industries in Vietnam. Meanwhile, Do Ventures has deep expertise in the emerging fintech landscape. Thus, the cooperation will benefit from these synergies with portfolio companies under Do Ventures.

Last week, the US Agency for International Development (USAID) and the Ministry of Planning and Investment (MPI) established a new project aimed at increasing the competitiveness of Vietnamese SMEs. The 5-year, $36-million initiative was initially announced in August during a visit to Vietnam by US Vice President Kamala Harris. The initiative will be carried out in collaboration with the MPI’s Enterprise Development Agency.

“This new project is USAID’s flagship effort to help Vietnam harness its entrepreneurial spirit in facilitating a dynamic, Vietnam-led transformation of the private sector into one that can compete globally, and provide more equal opportunity for all,” said USAID mission director Ann Marie Yastishock.

Also in January, the Asian Development Bank (ADB) signed a loan agreement with Tien Phong Commercial Joint Stock Bank (TPB) for a $25 million loan to help women-owned smaller enterprises in the country.

The loan comes with a $750,000 grant for technical support to enable TPB better meet the demands of WSMEs. TPB will use the grant to expand its capacity to lend to women-owned businesses, add staff, and market its services to female borrowers. It will also allow TPB to analyse the underserved female-led business market using digital systems.

SMEs contribute significantly to Vietnam’s economic development, accounting for 40 per cent of GDP and 60 per cent of total employment in 2018. However, new technology, networking, market connections, and a lack of access to management training and skills development opportunities are all obstacles to continuous and sustained growth for smaller enterprises.

Goel from Validus said that the inflow of support coming from international organisations, both monetary and developmental, will be positive in the long term because these support initiatives are geared towards building capability for Vietnamese SMEs. The support is targeted at ensuring preparedness and adequate resources for recovery and will give SMEs the boost that they need to pursue this growth.

Source: VIR


Garden on mountaintop brings VND5 billion a year to Pa Cop village farmer

Farmer Do Quy Hanh in Pa Cop village, a Thai ethnic minority man in Pa Cop hamlet in Son La province, has his own secrets to growing bountiful orange and longan orchards, bringing profit of VND5 billion a year.

Young people invent anti-cheating software for online exams

As the fourth wave of the COVID-19 pandemic hit the country in 2021, students had to study and take exams online. However, cheating on online exams has caused headaches for schools.

Fed rate hike's impact on Vietnamese economy not significant

The latest interest rate hike by the US Federal Reversal (Fed) will weigh on the global economy, including Vietnam, but experts expect impacts of the Fed’s move on the country will not be significant.

Vietnam Blockchain Union officially debuts

The Vietnam Blockchain Union (VBN) debuted on May 17 with the aim of connecting the local blockchain community to state management agencies to develop legal frameworks for the technology and to accelerate the development of VN's digital economy.

Vietnamese students champion int’l environmental competition

A team of three Vietnamese high school students has won an international prize on environmental sustainability.

NA Chairman meets with Lao PM, discussing measures to boost ties

National Assembly Chairman Vuong Dinh Hue met with Lao Prime Minister Phankham Viphavanh in Vientiane on May 17, where the two leaders discussed measures to promote bilateral relations.

Vietnamese e-commerce likely to reach US$39 billion by 2025

Vietnam’s e-commerce market has recorded strong growth over the years and is likely to bring in US$39 billion in value by 2025, according to data released by the German market research firm Statista.

The results of press privatization

The number of news articles and other articles published in electronic newspapers and magazines have soared recently.

Prime Minister meets representatives of investment funds, groups in New York

PM Pham Minh Chinh have met with leaders of global investment firm Kohlberg Kravis Roberts (KKR) and Visa Group in New York and held phone talks with the Deputy Managing Director of the International Monetary Fund (IMF) during his trip to the US.

SEA Games 31: Vietnam bags 88 gold medals as of May 16

Vietnam has so far obtained 197 medals, including 88 golds, at the ongoing SEA Games 31, topping the tally and leaving other competitors far behind.

Vietnam to play more active role at UN: PM

Vietnam will continue bringing into play its role and making more active and constructive contributions to the common work of the UN in all the three pillars – security-politics, development and human rights, PM Pham Minh Chinh has affirmed.

Billionaire list: Tran Dinh Long loses position, new names emerge

The HPG shares of Hoa Phat Group have seen a fall in price to VND35,900 per share, while billionaire Tran Dinh Long fell from the second position on the list of Vietnamese stock billionaires.

Building a national brand for Vietnamese rice

At wet markets, consumers can find varieties of rice stored in bowls and baskets from age-old brands such as Nang Thom Cho Dao, Huong Lai, Tai Nguyen and Bong Su.

National Development Master Plan: confusion due to conflicting legal provisions

The Law on Planning was approved by the National Assembly in 2017 and took effect on January 1, 2019, but after more than three years, the planning work has not been completed. Many problems have arisen and need the National Assembly’s comments.

First Vietnamese woman reaches summit of Mount Everest

Nguyen Thi Thanh Nha, also known as Céline Nha Nguyen, has become the first Vietnamese woman to conquer the summit of Mount Everest.