Measures are needed to improve the access of small and medium-sized enterprises (SMEs) to credit to help them recover production and business, according to representatives from business associations.

At a recent conference held to identify solutions to improve access by SMEs to bank loans, participants proposed the government and the State Bank of Vietnam (SBV) introduce measures such as cutting interest rates for SMEs or rescheduling loan repayments, similar to the policies introduced during Covid-19.

Deputy Director of the Business Development Department at the Ministry of Planning and Investment Bui Thu Thuy said the rate of SMEs gaining access to official financial sources remains low.

A survey from the Central Institute for Economic Management (CIEM) revealed that only 25 per cent of SMEs have obtained loans from banks or other official sources.

Meanwhile, bank representatives said there are certain obstacles in granting credit to SMEs, in particular a shortage of data to evaluate their financial situation. Banks still find it difficult to find adequate information relating to SMEs.

SBV Deputy Governor Dao Minh Tu said commercial banks should be more active in developing special credit products for SMEs while continuing to streamline administrative procedures in credit and banking activities.

The central bank will be flexible in administering monetary policy, he added, to help stabilize the macro-economy, exchange rates, and interest rates.

It will also complete credit policies and mechanisms to create the conditions for SMEs to gain access to credit.