LienVietPostBank and Viet Nam Association of Small-and-Medium Enterprises (VINASME) on Thursday signed a co-operation agreement in Ha Noi to provide comprehensive financial support to SMEs.

Accordingly, the two sides would help SMEs access credit resources and preferential financial services. They would help SMEs realise their start-up ideas, transition from household businesses to company models, as well as improve their financial management ability.

Under the agreement, the two sides would build a customer database, seeking and calling for capital from the Government, local and foreign funds, as well as help VINASME’s members participate in the credit programme.

LienVietPostBank also committed to supporting SMEs in terms of technology and digital banking, based on its Vi Viet e-wallet, the bank’s online banking service.

“SMEs have affirmed their position as a key force for the economy’s development,” said Nguyen Van Than, VINASME’s chairman, at the signing ceremony.

Statistics showed that by the end of 2016, the number of SMEs reached nearly 500,000, accounting for 98 per cent of the total firms in the country and providing jobs to 5.7 million labourers.

However, the association said more than 200,000 SMEs were given bank loans, which is a modest number despite the fact that the Government issued many policies and solutions to support SMEs and provide more opportunities for them to access bank loans.

Banks said lending to SMEs was still difficult as they lacked guarantee assets and financial reports, while administrative and risk management were also weak.

Nguyen Dinh Thang, LienVietPostBank’s chairman of the management board, said by the end of last year, the bank’s outstanding loans to SMEs were some VND12 trillion with 15,000 SMEs.

“The bank has implemented many programmes to support SMEs such as project financing, road maintenance fund packages, hi-tech agriculture lending, trade financing and guarantee,” Thang said. — VNS