Businesses in need for bank loan
06/08/2010 - 157 Lượt xem
Delegates from SMEs at the meeting all said that they have done their business with what they have but money from banks. Ms. Vo Thi Muot, Director of the Hung Phat Co., Ltd, said it is difficult for her firm to get bank loan for the requirement of mortgage though it is a successful SME. Therefore, it is even much more difficult for new-established SMEs to access to this source of capital.
Sharing the same view, Ms. Duong Thi Hai Ha, Director of the Hai Gia Co., Ltd also said last year, her firm wished for bank loan to boost business but no banks lent it for it had no mortgage. Whatever feasibility of the project was, no money from banks went to them.
Ms. Nguyen Hoang Dung, Director of the Huy Hoang Dung PTE had the same view. She said even businesses with mortgage find it hard to access to bank loans because they are lack for information from bank such as information about mortgage valuing, procedures, etc.
According to Mr. Truong Duc Ngai, Chairman of the Vietnam SMEs Association, for modest size, SMEs use mostly capital of their own instead of money lent by banks. Meanwhile, banks always consider performance of borrowing businesses to rate risk of their loans.
Among current 200,000 businesses in Vietnam, 97% are SMEs, which contribute 50% of GDP. However, 40% of those are small-sized firms with a capital of less than VND5 billion each.
One of the reason that lead SMEs to stay away from bank loans, according to Ms. Nguyen Thi Son, Director of the Legal Science and International Business Institute, is that banks value assets of businesses too low, sometimes just one thirds of enterprises’ properties. This problem can be solved if banks provide loans without the requirement of mortgage, the Director further said.
Source: Thời báo Kinh tế Việt Nam, 21/3/2006
