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Small and medium-sized enterprises (SMEs) can enjoy a financial aid package worth a total of approximately VND560 billion for 2017, according to the Ministry of Planning and Investment.
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 A footwear factory (Photo: VNA) |
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The package is operated by the SMEs Development Fund. Accordingly, the package loan SMEs a maximum of 70% of the acceptable investment capital of each project or business plan. The support programme for SMEs’ innovation has a total funding of VND100 billion (US$4.38 million). It provides a maximum loan of VND10 billion (US$438,500) and allows a 24-month grace period for the original loan. Another programme with the same funding targets companies involved in water supply, waste and wastewater management and treatment activities, with loans worth up to VND25 billion (US$1.09 million). The limits for supporting businesses in agro-forestry-fisheries and electronics and mechanical engineering are VND20 billion and VND25 billion, respectively. The loans carry a fix interest rate of 7%. SMEs employ more than 50% of the workforce and contribute over 40% of the GDP in Vietnam. However, they are facing an array of obstacles in accessing credit, production sites and markets. |
Business
VND560 billion to support small and medium enterprises in 2017
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