Small and medium-sized enterprises development fund to finance start-ups

Deputy Prime Minister, Vuong Dinh Hue, has suggested that the small and medium-sized enterprises (SMEs) development fund will provide credit to start-up enterprises and SMEs participating in value chains.

Deputy PM Vuong Dinh Hue speaks at the meeting (photo: VGP)
Deputy PM Vuong Dinh Hue speaks at the meeting (photo: VGP)

The Deputy PM made the suggestion at a working session with several ministries and sectors to contribute ideas to building a Government Decree on the operations of the SMEs development fund.

According to the draft Decree, the non-profit fund will have a chartered capital of VND2 trillion (US$86 million), sourced from the State budget, which will perform the tasks of funding start-ups and receiving and managing loans, grants, and donations from organisations and individuals to support SMEs.

The Deputy PM agreed with the ministries that the fund will be under the Ministry of Planning and Investment (MPI), operating under the model of a one-member limited liability company with 100% of its charter capital being held by the State.

He also asked the MPI to invite economists and experts in various fields to participate in the managing council of the fund in order to ensure efficiency in loan appraisals and decision making.

Deputy PM Hue agreed that the fund will provide direct loans and funds for SMEs, rather than through commercial banks.

The government official emphasised that the draft Decree should closely follow the Article 20 of the 2017 Law on SMEs to ensure the preservation and development of State capital.

He also requested the MPI to accelerate the building of the draft Decree to submit it to the government by the end of the third quarter of 2018.