Hanoi (VNA) – Prime MinisterPham Minh Chinh chaired a meeting between permanent Government members and theexecutive committee of the Vietnam Association of Small and Medium Enterprises(SMEs) in Hanoi on July 6 to seek solutions to challenges facing SMEs.

Due to impacts of the COVID-19pandemic and the world situation, SMEs have suffered from declining orders,struggling sales, and high input costs, which have affected their revenue aswell as jobs and income for workers, the association reported.

PM Chinh applauded the contributionsand achievements by SMEs, which account for over 97% of the total businessesnationwide.

He cited a recent survey as findingthat up to 59.2% of the 10,000 interviewed companies said their biggest problemis the shortage of orders; 51.1%, access to capital; and the remainders,difficulties related to administrative procedures and legal rules.

Current challenges face not only theVietnamese economy but many others in the world, he noted.

The Government always listens tobusinesses and exerts efforts to tackle the problems SMEs encounter, he affirmed,highlighting the extension of tax and land rent payment deadlines; thereduction or exemption of taxes, fees and charges (totaling about 200 trillionVND, or 8.4 billion USD); the facilitation of the corporate bond and realestate markets; the promotion of administrative reforms and the improvement ofthe business climate; assistance for businesses to recover fast and developsustainably; and the establishment of 26 working groups of Government membersto work with localities in this regard.

Talking about the difficult access tocapital and the high interest rates, PM Chinh said the banking sector has cut keyinterest rates for four straight times while striving to lower lending interestrates, increase outstanding loans, and facilitate credit access.

He asked the banking sector to takestronger actions to implement the Government’s resolutions on removingobstacles to production and business activities and creating jobs. Particularly,it needs to step up easing the monetary policy by increasing the money supply,aligning credit growth with credit demand, and reducing interest rates,especially lending ones.

The sector was also requested toboost the disbursement of the 120 trillion VND credit package for social housingdevelopment and the 10 trillion VND package for wood and fisheries businesses,and launch more consumption stimulation measures.

As inflation has been placed under controland gradually brought down, it is necessary to give more priority to realising thegrowth target and promoting the three growth drivers of investment, export, andconsumption, the leader went on.

With regard to administrativeprocedure reforms, the Government has assigned its Office to coordinate withthe Ministry of Home Affairs to keep reforming and streamlining administrativeprocedures, step up the decentralisation of power and the appropriate allocationof resources, and improve inferior agencies’ implementation capacity.

It will continue devising prioritymechanisms for SMEs to develop new areas such as innovation, digital transformation,green transition, the circular economy, the sharing economy, the PM noted.

In terms of order shortages, he heldthat it is important to increase trade promotion; capitalise on the existing freetrade agreements (FTAs); negotiate new ones; diversify markets, products andsupply chains; and improve product quality.

He added that this is the time for enhancingsolidarity among the Government, ministries, sectors, localities, andbusinesses to surmount difficulties./.