VietNamNet Bridge - While multinational conglomerates and large foreign investment funds are looking for opportunities to invest in large companies, other foreign investors are eyeing small and medium enterprises (SMEs). Vietnamese companies are attractive to foreign investorsKim Ja Jum, deputy CEO of Kiwoom, the securities company with the largest brokerage market share in South Korea, visited Hanoi in early November to attend a forum on Vietnam-South Korea economic cooperation. In the past, foreign investors only eyed large private companies or SOEs which were under equitization. But now, they also can see opportunities from SMEs. … [Read more...] about Vietnamese SMEs: new target for foreign investors
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Vietnamese SMEs upbeat about economy: survey
Vietnamese SMEs upbeat about economy: surveyBy Nhan Tam - The Saigon Times DailyFor economic sectors, the construction industry will continue to boom as 53% of Vietnamese SMEs believe that this sector continues to be the country’s key growth industry this year, followed by IT (36%) and leisure and tourism (28%).In the medium term for between three and five coming years, local SMEs still place the top choice on the construction industry as the key economic pillar with 53%, followed by agriculture (29%), leisure and tourism (29%), and IT (26%), according to the fifth UPS Asia Business Monitor (ABM).The survey, outsourced to the independent research organization TNS in Hong Kong by the logistics service provider UPS, was conducted between March 11 and April 20 this year. This is the first time Vietnam participated in the annual UPS ABM, which also covers other markets like Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan … [Read more...] about Vietnamese SMEs upbeat about economy: survey
SMEs not eligible for unsecured loans
SMEs not eligible for unsecured loans Thanh Thuong By Thanh Thuong - The Saigon Times Daily HCMC - Small and medium-sized enterprises (SMEs) from now on will face stricter credit guarantee conditions as they are required to have collateral to take out bank loans. Given the new regulation on operation of credit guarantee funds for SMEs effective on Monday, SMEs must have total collateral and mortgage value equal to at least 15% of the loan value if they want to have their loans underwritten. Meanwhile, enterprises only seek credit guarantees from the funds when they have no mortgaged assets. Do Tan Truc, deputy head of the financial investment consultancy department at the HCMC Credit Guarantee Fund for SMEs, said that enterprises usually contact the fund when they have no mortgaged assets to ask for bank loans. The fund is now providing guarantees to enterprises to take out unsecured loans. Following the regulation, the fund will only give guarantees to secured loans. Therefore, … [Read more...] about SMEs not eligible for unsecured loans
IFC joins ABBank to support lending to small businesses and women-owned SMEs
This is the first phase of an up to $150-million financing package IFC is arranging for An Binh Bank (ABBank). At least one third of the funding will go to support women-owned enterprises. With this funding, the bank aims to triple its SME portfolio and quadruple the size of its lending to women-owned SMEs over a five-year period. The outstanding SME portfolio is expected to reach more than $1 billion by 2021.As Vietnam’s economic growth continues, long-term funding for SMEs is going to become critical. While SMEs account for more than 98 per cent of the country’s businesses and 50 per cent of employment, only 30 per cent of the registered SMEs have access to formal financial services.Further, a new IFC study finds that it is even more difficult for women-owned SMEs to obtain bank loans, with an estimated credit gap of $1.2 billion per annum. “The much-needed syndicated funding from IFC and partner banks will help strengthen ABBank’s SME and … [Read more...] about IFC joins ABBank to support lending to small businesses and women-owned SMEs
IFC’s lending package helps Vietnamese SMEs
The loan is the first phase of a US$150 million financing package from IFC and Goldman Sachs for ABBANK, with more than one third of the said funding intended for women-owned SMEs. The December 19 statement from ABBANK indicated its aim to triple outstanding SME portfolio and quadruple lending to women-owned SMEs, which are expected to go beyond US$1 billion by 2021. IFC disclosed that out of the total US$150 million financing package, it would contribute US$40 million from its own account, US$70 million from Industrial and Commercial Bank of China Limited (ICBC), Bangkok Bank Public Company Limited and Maybank International Ltd and US$40 million from two other international lenders to be decided by 2018. At least US$45 million will be exclusively allocated to women-owned SMEs, Kyle Kelhofer, IFC country manager for Vietnam, Cambodia and Laos, said. “This project will promote women-owned SMEs as a viable business opportunity when provided with tailored products, appropriate … [Read more...] about IFC’s lending package helps Vietnamese SMEs
IFC’s lending package helps VN’s SMEs
International Finance Corporation (IFC) announced on Tuesday a successful syndicated senior loan package transfer of US$110 million to An Binh Commercial Joint Stock Bank (ABBANK) as a joint effort to boost the latter’s small and medium enterprises (SMEs) lending.The loan is the first phase of a $150 million financing package from IFC and Goldman Sachs for ABBANK, with more than one third of the said funding intended for women-owned SMEs.Tuesday’s statement from ABBANK indicated its aim to triple outstanding SME portfolio and quadruple lending to women-owned SMEs, which are expected to go beyond $1 billion by 2021.IFC disclosed that out of the total $150 million financing package, it would contribute $40 million from its own account, $70 million from Industrial and Commercial Bank of China Limited (ICBC), Bangkok Bank Public Company Limited and Maybank International Ltd and $40 million from two other international lenders to be decided by 2018.At least $45 million will be … [Read more...] about IFC’s lending package helps VN’s SMEs
September 11-17: PM attends 24th SMEs ministerial meeting Most Recent News
NDO - Nhan Dan Online reviews a number of notable events that have made the headlines over the past week. 1. PM attends 24th SMEs ministerial meeting Prime Minister Nguyen Xuan Phuc highlighted the theme of the 24th APEC Small and Medium Enterprises Ministerial Meeting (SMEMM), held in Ho Chi Minh City on September 15, stating that it demonstrates the aspiration of Vietnam to cooperate with the other APEC member economies to foster SMEs’ innovation and global access in the digital era. The SMEMM 24 is one of the most important ministerial events within the APEC cooperation framework, which is expected to adopt a joint statement on promoting start-up businesses and a strategy to develop green, sustainable and innovative SMEs, he said. 2. WB launches country partnership framework for Vietnam WB Country Director Ousmane Dione (left) hands over the book on the Country Partnership Framework for Vietnam to Minister of Planning and Investment Nguyen Chi Dung (Photo: VNA) The World Bank … [Read more...] about September 11-17: PM attends 24th SMEs ministerial meeting Most Recent News
Decoding Industry 4.0 for entrepreneurs and SMEs in Vietnam
During the conference, the tech firm introduced tools to assist enterprises in developing their business performance, generating corporate advantages, and becoming market leaders in their respective fields.With the participation of experts from numerous multinational corporations (MNCs), the conference was hosted to draw the community of entrepreneurs and SMEs closer to the fourth industrial revolution in the manufacturing and industrial segments.Additionally, Global Top Stars organised the ceremony of the transfer of technology (TOT) with Beijing GuDao Culture Communication Company as part of the firm’s business strategy for software and application development in multiple developed economies and in Vietnam later on.On the same day, Global Top Stars introduced several applications based on the concept of Industry 4.0, such as “smart city,” “smart home,” and “smart school” which have already been examined and applied by enterprises in … [Read more...] about Decoding Industry 4.0 for entrepreneurs and SMEs in Vietnam
Expert: Most SMEs have no access to official financing channels
Expert: Most SMEs have no access to official financing channelsBy Thuy Trieu - The Saigon Times Daily Vo Tri Thanh, deputy head of the Central Institute for Economic Management, or CIEM, said the survey conducted in 2009 indicated about three-fourths of the local SMEs had to resort to unofficial capital sources to keep their business running. “This reality shows that the possibility of local SMEs having access to official financing channels is very low,” Thanh said at a seminar named “Strategy for SMEs to overcome economic crisis” in the city on Wednesday. Thanh said the survey had been undertaken by CIEM and a foreign organization. Official capital sources referred to by Thanh are bond issues, stock markets, and bank loans. To borrow money via bond issues, enterprises must have a reputation and secure guarantees from the authorities, so small enterprises find it almost impossible to tap this financing channel, Thanh said. As for the stock market, it has been … [Read more...] about Expert: Most SMEs have no access to official financing channels
Local SMEs most concerned about inflation: HSBC survey
By Thuy Trieu - The Saigon Times DailyHCMC – Over 60% of small and medium enterprises (SMEs) in Vietnam participating in a latest survey by HSBC said they are most concerned about inflation in the next six months. The HSBC Small Business Confidence Monitor found the next concerns among SMEs are economic conditions with 52% of respondents and difficult access to bank loans with 48%. This is also reflected in the HSBC Emerging Market Index survey. In terms of enterprises' confidence, despite falling eight points from the previous survey done six months ago, the Vietnam small business confidence index stays positively at 156, the second highest in the world, over the global average of 125. This is in line with the economic outlook as 60% of SMEs in Vietnam believe the economy will continue growing in the next six months. Over half of the surveyed enterprises in Vietnam are involved in international business, which is much higher than the average global figure of 29%. Mainly these … [Read more...] about Local SMEs most concerned about inflation: HSBC survey