MoPI unveils new small business lending initiative

“Small businesses have faced a storm of problems over the past couple of years,” said Dang Huy Dong, deputy minister of MoPI, in announcing the initiative.  “Most notably they have faced difficulty as a result of pulling back by lending institutions.”

Deputy Minister Dong said, the Vietnam government is committed to using all of our available tools to help small businesses access capital, create jobs and support a durable economic recovery.

To get credit flowing again we are announcing new measures today that will make US$90 million of lending available as part of an ongoing effort to help small businesses access credit and create jobs.

Small businesses have always formed the backbone of the Vietnam economy, said the Deputy Minister, and that’s why today, we’re announcing new steps to support more lending to small businesses—steps that will lead to more jobs, more growth, and a stronger economic recovery.

The initiative has a simple goal, and that is to help small businesses by helping the community banks whose business it is to serve them," he said. The fund will entrust commercial banks to offer preferential loans for small businesses.

The loans will carry interest rates of 5%-7%, said the Deputy Minister, and we will ensure the loan sizes are sufficient to allow business owners and entrepreneurs to access the credit they need to expand their operations and create jobs.