IFC, SECO support 500,000 Vietnamese enterprises to access capital of 35 billion USD

Representatives of IFC and SECO shake hands at the signing ceremony of Phase 2 of the Supply Chain Finance (SCF) Program. Photo: Hoang Nam

Vietnam is considered one of the most open economies in the world, with nearly 50% of its GDP coming from exports. However, many businesses, especially small and medium-sized enterprises (SMEs), still face difficulties in maintaining cash flow when participating in the global supply chain. Slow payments, often 30-60 days, make it difficult for businesses to expand orders and find new partners.

At the signing ceremony, Deputy Governor of the State Bank of Vietnam Nguyen Ngoc Canh affirmed that supply chain finance plays an important role in helping businesses overcome this barrier. "In the world , this is one of the effective, fast and low-risk working capital support tools, creating conditions for businesses to develop sustainably."

According to him, Vietnam is gradually perfecting the supply chain finance system to help businesses access capital more easily, reduce financial pressure and increase competitiveness. "The State Bank will continue to coordinate with IFC and SECO to promote lending via electronic platforms, diversify financial products, and create conditions for businesses to integrate more deeply into the global supply chain."

The commitment from Switzerland is also clear. Ambassador Extraordinary and Plenipotentiary of the Swiss Confederation to Vietnam Thomas Gass emphasized: "Access to working capital is not only an issue for SMEs but also affects large corporations. Flexible finance helps improve operational efficiency and creates new development opportunities."

Phase 2 of the SCF will leverage technology, including blockchain, to improve transparency and efficiency in supply chain finance, Gass said. “We will leverage technology to build flexible support policies while ensuring the sustainability of the financial system.”

Besides, he emphasized: "Vietnam and Switzerland will continue to cooperate closely in the financial sector, towards building a stronger supply chain finance system, supporting Vietnam on its journey to becoming a high-income economy."

The SCF program, initiated by IFC with support from SECO since 2018, has achieved remarkable results. Over the past five years, the program has helped improve the legal framework, provided financial strategy advice to four banks in Vietnam, and supported $33 billion in working capital financing for SMEs.

Mr. Thomas Jacobs, IFC Country Manager for Vietnam, Laos and Cambodia, assessed that supply chain finance is a key element in the growth strategy of enterprises. "Trade is a key driver of the Vietnamese economy, and supply chain finance will be an important tool to help SMEs grow sustainably."

He also emphasized the program’s long-term goal: “Vietnam is aiming to become a high-income economy by 2045, and an effective supply chain finance system will help small and medium-sized enterprises improve their competitiveness. IFC is pleased to continue working with SECO and local banks to expand the supply chain finance market, thereby supporting businesses to access capital more easily, promote growth and deepen integration into global value chains.”

Not only providing finance, Phase 2 of SCF also aims to perfect the legal framework, enhance the institutional capacity of financial institutions and increase business awareness of supply chain finance.

The signing ceremony not only marks the continued cooperation between Vietnam and Switzerland but also opens a new chapter, expected to create a more flexible and transparent financial system, helping Vietnamese enterprises develop sustainably and enhance their position in the global supply chain.

Source: https://kinhtedothi.vn/ifc-seco-ho-tro-500-000-dn-viet-nam-tiep-can-nguon-von-35-ty-usd.html