>> Only one third of SMEs able to get bank loans
JICA will provide aid to Vietnamese state agencies in their effort to develop small and medium-sized enterprises.
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| Small and medium-sized enterprises account for over 97% of businesses in Vietnam |
The Japanese International Cooperation Agency (JICA) and the Agency for Enterprise Development (AED) under the Ministry of Planning and Investment on June 20 agreed to a project to strengthen pubic assistance to small and medium-sized enterprises (SME) in Hanoi.
The project, to be carried out between 2011 and 2014, will help the AED create and implement measures to support SMEs, as well as encourage active and continuous participation by state agencies.
At the signing ceremony, JICA Vietnam\'s Chief Representative, Tsuno Motonori said, “Since 1999, besides technical assistance, we have provided loans totaling JPY27 billion (USD337.3 million) for Vietnamese SMEs.”
Currently, SMEs account for over 97% of businesses in Vietnam, and make up about 45% of the GDP.
According to a recent survey by the Ministry of Planning and Investment, just one third of Vietnamese SMEs qualify for bank loans.
High interest rates pose another difficulty for many of these businesses. Lack of credit has caused many of them to make cutbacks, or even cease operations altogether.
