(AG Provincial E-Portal) - On October 31, in An Giang province, the General Department of Enterprise Development, Ministry of Planning and Investment in coordination with the United States Agency for International Development (USAID) through the Project on Improving Private Sector Competitiveness (IPSC) of Vietnam and the Department of Planning and Investment of An Giang province, An Giang Business Association organized a training workshop on "Comprehensive financial management strategy to optimize costs and access capital effectively" in order to improve the ability to access capital effectively for the business community, especially small and growing businesses in An Giang province.
Attending the program, nearly 130 production and business establishments, small and medium enterprises in An Giang province will be introduced by strategy and organizational development experts, finance - banking experts about business strategies for small and growing enterprises; financial strategies for small and growing enterprises; assessment of business financial health; financial management tools, management of financial indicators and cash flow management; capital raising processes and skills for businesses; solutions to access capital for businesses from credit institutions and funds or investors; credit lending according to the rice agricultural chain; credit lending based on financial technology (Fintech); Optimizing credit products towards sustainable development for small and growing businesses...
Speaking at the workshop, Ms. Trinh Thi Huong, Deputy Director of the General Department of Enterprise Development, Ministry of Planning and Investment, said that micro, small and medium enterprises account for about 98% of the total number of businesses operating nationwide, creating 36% of total employment for the society, contributing more than 40% of GDP to the country. However, in reality, the operations of this business community are still facing many difficulties, including difficulties in financial management and access to capital.
In particular, in the context of economic integration and strong development of science and technology today, small and medium enterprises in Vietnam in general, and An Giang province in particular, are facing many challenges, forced to stop operations and go bankrupt. In addition to difficulties in policy mechanisms, lack of information, weak position and strength..., the weakness in financial management and access to capital is an important cause. According to Ms. Trinh Thi Huong, Deputy Director of the General Department of Enterprise Development, Ministry of Planning and Investment, currently, leaders of small and medium enterprises do not properly perceive the important role of financial management; lack of thinking and vision in planning for financial activities; the ability to control corporate finance is weak and passive. Along with that, business leaders do not fully perceive the role and positive effects of financial management, so they do not pay due attention to making financial plans. Most small and medium-sized enterprise management originates from small workshops, production groups, and households, so these business owners often manage their businesses based on their feelings, convenience, and personal relationships and trust.
In addition, the ability to mobilize capital of small and medium-sized enterprises is still very limited, mainly based on their own capital, which usually accounts for about 50 - 70%, followed by mobilization from friends, relatives, and credit institutions. With limited financial resources, limited experience and financial management skills, small and medium-sized enterprises find it difficult to gain the trust of investors, so they rarely participate in financial markets such as the stock market and financial leasing.
In order to remove difficulties for small and medium enterprises in the field of financial management, in recent times, the General Department of Enterprise Development, Ministry of Planning and Investment has proactively coordinated closely with provinces, cities, and associations to implement many support activities, improve competitiveness for enterprises, promote enterprises to develop more and more strongly, thereby contributing more positively to the socio-economic development of the locality.
Deputy Director of the General Department of Enterprise Development, Ministry of Planning and Investment Trinh Thi Huong expects and believes that after 1.5 days of participating in the training workshop on "Comprehensive financial management strategy to optimize costs and access capital effectively", small and medium enterprise managers in An Giang province will approach and grasp skills and information on comprehensive financial management; improve operational efficiency; enhance skills in preparing and accessing various sources of capital suitable for enterprises, thereby expanding financial capacity and improving competitiveness. At the same time, this is also an opportunity for businesses to exchange, learn and share experiences with each other; develop new business cooperation opportunities…/.
News by Cong Mao
Translation by Thi Huynh
