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On the afternoon of September 27, 2024, in Vinh City, Nghe An Province, BIDV-SuMi TRUST Financial Leasing Company (BSL) coordinated with the VCCI’s SMEs Support Center to organize the seminar “Financial Leasing – An Effective Medium to Long-Term Funding Access for Small and Medium Enterprises,” with the participation of 150 managers, experts, and business leaders from the Nghe An area.

The seminar “Financial Leasing – An Effective Medium and Long-Term Funding Access for Small and Medium Enterprises” was co-organized by BSL and VCCI.

Challenges in Accessing Capital for SMEs in Vietnam

Speaking at the seminar, Ms. Tran Thi Thanh Tam, Director of the VCCI’s SMEs Support Center, noted that the government has implemented various supportive policies to alleviate difficulties and VCCI has conducted several activities to help businesses access and diversify their funding sources. However, according to VCCI’s survey, one of the biggest challenges for businesses, especially SMEs, face is to set access to capital and markets.

In the presentation on “Accessing Capital for SMEs in Vietnam – Current Situation and Solutions,” Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam (BIDV) and member of the National Financial-Monetary Policy Advisory Council, outlined the state of capital access for SMEs in Vietnam from 2015 to 2023. He pointed out several challenges hindering businesses’ access to capital, including a lack of collateral, high minimum capital requirements, and greater risk reserves required by credit institutions, as well as a limited number of alternative funding sources.

Dr. Can Van Luc, Chief Economist of the Bank for Investment and Development of Vietnam (BIDV) and member of the National Financial-Monetary Policy Advisory Council, pointed out the challenges hindering businesses’ access to capital.

“Domestic enterprises, especially SMEs, have not effectively mobilized and utilized financial channels from the stock market, non-bank financial institutions, credit guarantee funds, SME development funds, and many other funding sources. Currently, there are 16 financial companies, 10 financial leasing companies, nearly 1,200 credit cooperatives, and 4 macro-financial organizations in the market; however, their operational scale is still small and does not meet the capital needs of SMEs,” Dr. Can Van Luc analyzed.

Overcoming the “Bottleneck” in Capital Access for SMEs

To enhance funding sources for SMEs, Dr. Can Van Luc suggested that regulatory bodies need to improve the legal framework for non-bank financial institutions (especially for financial leasing and supply chain financing) including tax, fees, and risk management; build and connect technological infrastructure and business databases; promote financial education for businesses; and develop effective stock, bond, investment fund, and SME development fund markets.

For the businesses themselves, it is essential to increase competitiveness to meet standards for participating in supply chains and value chains; strictly comply with financial and accounting laws to enhance management capabilities and increase transparency; diversify funding sources; pursue green and digital transformation; and strive for listing and issuing securities.

“Businesses need to develop detailed short-term and long-term financial plans to identify and mitigate financial risks. At the same time, they should closely control costs, cut unnecessary expenses, forecast cash flows, and use capital purposefully and with planning,” shared Mr. Bui Quang Dung, Training Director at TOT Business Development Solutions, on solutions to enhance competitiveness for businesses.

To resolve difficulties related to capital access, experts emphasized that businesses need to regularly update support policies and potential funding sources beyond bank loans or their own capital to diversify medium- and long-term funding sources, including financial leasing.

Financial Leasing – An Effective Funding Channel for Businesses

Mr. Hoang Van Phuc, DCEO of BIDV-SuMi TRUST (BSL), analyzed that one of the benefits of financial leasing is utilizing leased asset as collateral. Additionally, leased assets such as machinery and equipment often have higher financing ratios compared to bank loans. With these advantages, financial leasing is considered an effective funding channel for businesses, especially SMEs.

Mr. Hoang Van Phuc, DCEO of BSL, introduced the financial leasing services.

Furthermore, for businesses with assets and efficient operations but lacking working capital after reaching their bank credit limits, the “Sale and Lease-back” option from financial leasing companies is an optimal financial solution to help them raise funds to maintain and expand their operations.

BSL, with extensive experience and a solid position in the Vietnamese financial market, continues to assert its pioneering role in financial leasing. Supported by strategic shareholders, including two leading financial institutions from Vietnam and Japan – BIDV and Sumitomo Mitsui Trust Bank (SuMi TRUST) – along with a nationwide network, BSL not only provides flexible financial solutions but also focuses on enhancing service quality and delivering sustainable value to customers.

“The purpose of BSL is to become a trusted partner in the financial leasing market, which is why we always strive to provide optimal financial solutions tailored to our customers, ensuring the highest level of trust and satisfaction while balancing the interests of all stakeholders,” shared Mr. Phuc.

The speakers addressed the questions of businesses during the discussion session

In the context of businesses, especially SMEs, facing numerous challenges in accessing capital to enhance competitiveness and drive production activities, the seminar “Financial Leasing – An Effective Medium and Long-Term Funding Access for Small and Medium Enterprises” was held to help businesses improve financial management efficiency and diversify funding access channels to ensure their sustainable development.

Thao Nguyen.