Workers are working at International Garment Corporation To resolve the dilemma, local authorities have proceeded with establishment of credit guarantee funds to support enterprises in need of capital but not well-qualified for bank loans. With such supports, banks are now more confident to offer loan facilities to enterprises.Bad debts have been the great challenges to enterprises barring them from accessing loan facilities as asserted by Mr. Phan Huu Hung, Director of T&T Electronics Corporation in Song Than Industrial Park, Di An Town. And, even enterprises with no bad debts are unable to make mortgage to banks.The challenge has been long put due to the concept of small-and-medium enterprises which are in low financial position, business management, and strategies. The criteria in majority of such enterprises are not so well-qualified for bank loans. Thus, they are not so easily accessible to loans. And, a credit guarantee fund is the key to the puzzle. Chairman of Binh Duong Provincial People’s Committee, Mr. Le Thanh Cung confirmed an on-going research to create such fund to untie the knot for the enterprises and open up capital flows to production lines and local economic growth.Under local models of credit guarantee funds, enterprises in fields of agriculture, forestry, aquaculture, industry, and construction of capital below VND 100 billion or having less than 300 employees shall be guaranteed to make loans to banks. As for commercial small and medium enterprises, total capital should be below VND 50 billion to be supported with the funds. The sizes of enterprises are ruled and governed by government’s Decree No. 43/2010/ND-CP dated April 15, 2010 on business registration.As the matter of fact, the funds connect enterprises with banks thanks to their guarantee. And as experts have asserted, the funds have created win-win situation for enterprises and banks to join in.Reported by Thanh Son – Translated by Vi Bao
Part 1: Credit guarantee fund established
Enterprises are inaccessible to loan facilities from banks for not being well-qualified in the face of economic obstacles. They are facing low business operation pace while the banks have more to offer.Part 2: Effectiveness and experience of credit guarantee fund in Ho Chi Minh City Workers are working at International Garment Corporation To resolve the dilemma, local authorities have proceeded with establishment of credit guarantee funds to support enterprises in need of capital but not well-qualified for bank loans. With such supports, banks are now more confident to offer loan facilities to enterprises.Bad debts have been the great challenges to enterprises barring them from accessing loan facilities as asserted by Mr. Phan Huu Hung, Director of T&T Electronics Corporation in Song Than Industrial Park, Di An Town. And, even enterprises with no bad debts are unable to make mortgage to banks.The challenge has been long put due to the concept of small-and-medium enterprises which are in low financial position, business management, and strategies. The criteria in majority of such enterprises are not so well-qualified for bank loans. Thus, they are not so easily accessible to loans. And, a credit guarantee fund is the key to the puzzle. Chairman of Binh Duong Provincial People’s Committee, Mr. Le Thanh Cung confirmed an on-going research to create such fund to untie the knot for the enterprises and open up capital flows to production lines and local economic growth.Under local models of credit guarantee funds, enterprises in fields of agriculture, forestry, aquaculture, industry, and construction of capital below VND 100 billion or having less than 300 employees shall be guaranteed to make loans to banks. As for commercial small and medium enterprises, total capital should be below VND 50 billion to be supported with the funds. The sizes of enterprises are ruled and governed by government’s Decree No. 43/2010/ND-CP dated April 15, 2010 on business registration.As the matter of fact, the funds connect enterprises with banks thanks to their guarantee. And as experts have asserted, the funds have created win-win situation for enterprises and banks to join in.Reported by Thanh Son – Translated by Vi Bao
Workers are working at International Garment Corporation To resolve the dilemma, local authorities have proceeded with establishment of credit guarantee funds to support enterprises in need of capital but not well-qualified for bank loans. With such supports, banks are now more confident to offer loan facilities to enterprises.Bad debts have been the great challenges to enterprises barring them from accessing loan facilities as asserted by Mr. Phan Huu Hung, Director of T&T Electronics Corporation in Song Than Industrial Park, Di An Town. And, even enterprises with no bad debts are unable to make mortgage to banks.The challenge has been long put due to the concept of small-and-medium enterprises which are in low financial position, business management, and strategies. The criteria in majority of such enterprises are not so well-qualified for bank loans. Thus, they are not so easily accessible to loans. And, a credit guarantee fund is the key to the puzzle. Chairman of Binh Duong Provincial People’s Committee, Mr. Le Thanh Cung confirmed an on-going research to create such fund to untie the knot for the enterprises and open up capital flows to production lines and local economic growth.Under local models of credit guarantee funds, enterprises in fields of agriculture, forestry, aquaculture, industry, and construction of capital below VND 100 billion or having less than 300 employees shall be guaranteed to make loans to banks. As for commercial small and medium enterprises, total capital should be below VND 50 billion to be supported with the funds. The sizes of enterprises are ruled and governed by government’s Decree No. 43/2010/ND-CP dated April 15, 2010 on business registration.As the matter of fact, the funds connect enterprises with banks thanks to their guarantee. And as experts have asserted, the funds have created win-win situation for enterprises and banks to join in.Reported by Thanh Son – Translated by Vi Bao
