This initiative is a key focus of the project "Continuing to modernize the banking system, address weak credit institutions, and enhance capital access for businesses, especially small and medium-sized enterprises." The project was outlined in Decision 1809, signed on 18/9, and aims to innovate credit provision methods for the business sector.

Under the project, by 2030, businesses, particularly small and medium-sized enterprises, are guided to access capital conveniently, promptly, and in line with their production and business needs, readiness, industry, and scale.

Businesses participate in Startup Connection Day organized by the Ho Chi Minh City Department of Science and Technology, 27/5. *Photo: An Phuong*

To achieve this goal, the government directs credit institutions to improve internal regulations and lend based on business plans and market expansion strategies. Banks are also encouraged to lend along value chains and supply chains, utilizing payment data and business cash flow, in addition to collateral forms compliant with legal regulations.

Another notable point is the factoring mechanism, which is guided for completion to expand capital channels for small and medium-sized enterprises. This method can help businesses improve cash flow, reduce reliance on collateral, and enhance competitiveness.

Additionally, this approach places greater emphasis on a business's revenue generation and cash flow capabilities, rather than solely focusing on collateral. For small businesses, this is significant because this group often has limited asset scale and ability to meet credit conditions compared to larger enterprises.

Beyond credit provision methods, the project requires credit institutions to enhance technology application and digital transformation in lending activities. This includes simplifying administrative procedures and developing products tailored to each business type and production needs, especially for small and medium-sized enterprises.

The government also directs the implementation of bank-business connection programs in various forms and scales. These programs aim to understand and resolve difficulties in accessing credit, with loans directed towards production and business, priority sectors, and economic growth drivers.

The project aims by 2030 to build the State Bank of Vietnam into a modern central bank, based on digital governance and data platforms. Concurrently, it seeks to develop a system of credit institutions that operate soundly, transparently, and are technology-driven.

For businesses, the implementation of these directives will depend on how individual banks establish assessment criteria, credit products, and appraisal processes. Decision 1809 does not stipulate that businesses are automatically granted loans based solely on cash flow, but rather sets a direction for credit institutions to expand their assessment and credit provision methods within legal frameworks.

Hai My

VnExpress newspaper, in partnership with Military Commercial Joint Stock Bank (MB), is developing the "Businesses Rising" special section starting 7/2025. This initiative aims to accompany the Vietnamese business community on its development journey.

The section includes four categories: policy, investment, innovation, and business stories. It provides information on: taxes, interest rates, local investment situations, innovative business models, and more.

Businesses with inspiring stories can submit them here.