SMEDF partners with VPBank to facilitate SMEs access to preferential loans
Chairman of SMEDF's Board of Members Phạm Xuân Kiên highlighted that SMEs account for about 98 per cent of all businesses in the country, significantly contributing to the GDP.
The Small and Medium Enterprise Development Fund (SMEDF) and the Vietnam Prosperity Joint Stock Commercial Bank (VPBank) have signed a framework agreement for indirect lending, aimed at providing easier access to preferential loans for SMEs in Việt Nam.
Speaking at the event, Phạm Xuân Kiên, chairman of SMEDF's Board of Members, highlighted that SMEs account for about 98 per cent of all businesses in the country, significantly contributing to the GDP and generate more than 55 per cent of employment.
"This signing marks the beginning of a partnership between the Fund and VPBank, aimed at strengthening connections and working towards becoming comprehensive partners, ensuring long-term cooperation. We will leverage each side's strengths to support the sustainable development of the SME community in line with the Party's and the Government's directions," Kiên emphasised.
To implement these policies, SMEDF has been providing direct and indirect loans through commercial banks, targeting innovative start-ups, SMEs participating in industry clusters and value chains.
In addition, the Fund supports capacity building for SMEs, manages loan funds, grants, donations and entrusted funds from organisations and individuals to help them meet donor requirements and comply with Vietnamese law, participates in developing policies to support SME development and engages in international cooperation activities related to SME support.
"The Fund's goal is to help SMEs develop competitive and environmentally friendly products, invest in modern equipment and technology, and improve business management capabilities. This will enable SMEs to unlock their full potential, enhance competitiveness and strengthen their market position, laying the foundation for stable economic growth in the country," Kiên said.
Reaffirming that SMEDF and VPBank share a common mission, Đào Gia Hưng, deputy director of VPBank's SME Division, noted that SMEs are a key segment in the bank's development strategy.
"VPBank has been continuously investing heavily in technology and human resources to ensure the provision of timely digital financial solutions, enabling SMEs to fully utilise the bank's capital to seize every business opportunity," Hưng said.
Expressing his honour that VPBank has been chosen by SMEDF as a partner to support SME funding, Hưng confirmed that the bank would continue to develop more comprehensive financial solutions, offering capital at lower interest rates with flexible terms and loan purposes. Notably, access to funding would be expedited thanks to VPBank's fully online appraisal, approval and disbursement process.
According to Decision No. 12/QD-HĐTV dated 4 October 2023, the SME Development Fund announced the loan interest rates. Specifically, the short-term lending rate is 1.2 per cent per annum, while both medium and long-term lending rates are set at 4.4 per cent. — VNS
