In a recent proposal submitted to the government, the Ministry of Planning and Investment suggested an additional 2 percent annual reduction in interest rates for eligible businesses borrowing from Vietnam's small and medium-sized enterprise (SME) development fund, local newspaper Vietnam News reported.
For now, the fund's registered capital has reached 837 billion Vietnamese dong (35.2 million U.S. dollars), the newspaper reported.
The development fund has disbursed nearly 600 billion dong since 2016 to nearly 40 startup SMEs. During the first six months of 2023, it has granted 260 billion dong (11 million U.S. dollars) to eight SMEs, or 87 percent of its annual target.
Vietnam is home to nearly 800,000 SMEs, according to a report by the Ministry of Information and Communications.
Vietnamese SMEs accounted for 98 percent of all registered businesses, created 70 percent of all employment, and generated about 50 percent of the country's GDP, the newspaper reported.
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