Project approved to strengthen private sector competitiveness in An Giang

On the occasion, the provincial Department of Planning and Investment and the provincial Business Association hosted a training workshop regarding comprehensive financial management strategies for cost optimisation and effective capital access. The event attracted nearly 130 local manufacturing facilities and small- and medium-sized enterprises (SMEs).

Experts introduced the participants to business and financial strategies, corporate financial health assessment, financial and cash flow management tools, and fundraising processes and skills, among others.

Speaking at the event, AED Deputy Director Trinh Thi Huong highlighted that micro-, small-, and medium-sized enterprises (MSMEs) account for approximately 98% of all active businesses in Vietnam, generating 36% of total jobs and contributing over 40% to the country’s GDP. However, these businesses face numerous challenges, particularly in financial management and capital access.

According to Huong, many MSMEs originate from small production groups or family-run establishments so their owners mostly manage their businesses based on intuition and personal relationships. Additionally, the ability of these businesses to mobilise capital is severely limited, primarily relying on personal funds, which typically account for about 50-70% of their capital, followed by borrowing from friends, family, and credit institutions.

With limited financial resources and financial management expertise, they struggle to gain the trust of investors and seldom engage in financial markets such as stock market or leasing services.

The official expressed a hope that MSME managers in An Giang would acquire comprehensive financial management skills and knowledge, enabling them to enhance their capabilities and competitiveness.