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| Electric vehicle manufacturing at a Vinfast factory of private conglomerate Vingroup in Hai Phong__Photo: An Dang/VNA |
The Government has recently assigned specific tasks to authorities to implement Politburo Resolution 68-NQ/TW of May 4, on private economy development.
Under Resolution 138/NQ-CP dated May 16, promulgating the Government’s Action Plan to realize Resolution 68-NQ/TW, the Ministry of Finance (MoF) is tasked to review regulations concerning the management of land and public assets and credit guarantee, and work with the State Bank of Vietnam (SBV) to promote mechanisms for information sharing among banks, tax agencies and related agencies.
Resolution 138 says that the MoF and the SBV will play a pivotal role in improving institutions and facilitating access to land and credit resources for the private economic sector.
With regard to the management of land and public assets, particularly those in industrial parks and economic zones, the MoF is tasked to propose amendments to Government Decree 35/2022/ND-CP so as to supplement policies and mechanisms allowing localities to allocate at least 20 hectares of land per industrial park or 5 percent of the total land area of a locality with built industrial-park infrastructure for lease to small- and medium-sized enterprises (SMEs), hi-tech enterprises and innovative startups.
The ministry is also mandated to recommend revisions to Decree 108/2024/ND-CP, on management and use of land and housing as public assets for non-residential purpose, serving as a basis for supplementing mechanisms for cost exemption or reduction for SMEs, supporting industry enterprises and innovative enterprises that rent public assets not yet used or not used in localities.
Proposing changes in organizational model of credit guarantee funds for SMEs
The cabinet assigns the MoF to review Decree 34/2018/ND-CP, on the organization and operation of credit guarantee funds for SMEs, for making appropriate changes. This is expected to adjust the funds’ organizational model and enhance their operational efficiency, minimize risks, and loosen guarantee conditions.
The resolution says the MoF needs to consider the establishment of the Central Credit Re-Guarantee Fund to provide re-guarantee for local credit guarantee funds. Another task is to propose a pilot mechanism for the operation of a crowdfunding exchange to create a direct connection between SMEs, individual business households and funding organizations.
As regards the development of enterprise support funds, the ministry is required to review Decree 39/2019/ND-CP and Decree 45/2024/ND-CP on the organization and operation of the Small and Medium Enterprise Development Fund, with a focus on the formulation of preferential financial mechanisms to support innovative projects and facilitate SMEs' access to more diverse financial sources. This aims to increase target beneficiaries, simplify lending conditions and procedures, and add the function for investment in local investment funds and private investment funds for increasing capital supply sources for SMEs and innovative startups.
Diversifying capital mobilization channels
According to the resolution, the MoF takes charge of implementing the Stock Market Development Strategy through 2030, focusing on development of institutional investors and intermediary organizations. The ministry is also assigned to complete the legal framework for corporate bonds issued in the domestic market and offered to the international market. It is also required to study and propose a legal mechanism for the securitization of debts to increase liquidity and seek more capital mobilization channels for sole proprietorships.
In the meantime, the SBV is assigned to amend Circular 26/2024/TT-NHNN toward lengthening the list of assets permitted for financial lease, including software, exploitation rights, intellectual assets and data.
The central bank is also required to direct commercial banks to prioritize the extension of credit to sole proprietorships, especially SMEs, supporting industry enterprises, and innovative startups operating in the fields of technology, digital transformation and supply chains.
The SBV has the tasks of promoting mechanisms for information sharing among banks, tax agencies and related agencies to establish a unified database system and support a comprehensive assessment of corporate finance.
In addition, the central bank must tighten its strict supervision of credit institutions' operations and control risks during credit extension with a view to guaranteeing a safe financial system.- (VLLF)
