Products made by start-ups on display at a start-up contest in HCM City. Vietnamese firms, especially SMEs and start-ups, should have greater financial transparency to access credit and capital, analysts said. — Photo Xuan Huong

Enterprises, especially small and medium-sized ones and start-ups, need to enhance financial transparency and connect with banks if they want to obtain loans, according to experts.

“It is the same when seeking to raise capital,” Lam Minh Chanh, founder of business school BizUni and co-founder of the Management and Startup Group, said.

Many SMEs still have unclear invoices when buying and selling, he said, warning that they need to be more transparent with respect to sales and revenues.

The pandemic has severely affected the global economy, including Viet Nam, he said.

The immediate financial impact is significant for most big and small businesses, and how to raise capital during this difficult time to maintain operations and overcome this tough period is one of the top concerns of businesses, he said.

"It usually takes us three to six months to raise capital. During the epidemic period, businesses have died before they raised capital.

“Therefore, this is the period when businesses have to depend a lot on internal resources. Businesses must explore all ways to sell their products to earn revenues to first [survive]."

Dang Van Thanh, chairman of TTC Group and the Vietnamese Brand Club, said the current high lending interest rates are a burden for businesses while banks are wary of lending due to risk concerns.

He said businesses should use their “savings,” which could be cash or even assets bought during profitable times to help them survive this tough time.

Concurring with him, Ngo Cong Truong, chairman of John & Partners Consultancy and Education JSC, said, “SMEs should use their savings at this time … Another important thing is that businesses need to cut all unnecessary expenses."

Firms, especially start-ups, should focus on their core business segments, and stop ineffective ones and even close down if they do not see bright prospects, to start a new one.

Chanh said Vietnamese entrepreneurs often place a lot of enthusiasm and personal finances into start-up companies, and so when their companies face difficulties or failures, it takes more time for them to close the business compared to their counterparts in foreign countries.

Thanh said to control costs, businesses have to invest in technology and digital transformation.

The opportunity after the pandemic is real, and firms should reconsider their input sources to reduce reliance on imports, expand domestic market share, and seek new markets to capitalise on the opportunities on offer after the pandemic, he added. — VNS