November 20, 2017 10:47

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International trade development for SMEs: Support from banks, management agencies

12:23 | 09/11/2017

VCN- To strengthen international trade, to meet the requirements of integration, small and medium enterprises need more active support from banks, state management agencies.  

international trade development for smes support from banks management agencies
Small and medium enterprises still have difficulties in developing international trade. Source: Internet.

Only 14% have foreign customers

According to research by the Asian Research Institute, the proportion of small and medium enterprises in Vietnam in international trade is low compared to other countries in the region. Although occupying nearly 98% of total enterprises, small and medium enterprises only account for less than 20% of total export turnover. The proportion of small and medium Vietnamese enterprises participating in the global trade network is low, accounting for only 21%, while the figure in Malaysia is 46% etc. Thus, statistics show that only 14% Small and medium enterprises in Vietnam have customers, partners are foreign investment enterprises. 65% of firms have difficulty accessing foreign partners and investors.

The reason given by the experts is that they face many challenges such as limited access to capital and trade finance, lack of data, lack of sales channels and lack of international trading experience.

Mrs. Nguyen Thi Anh Tuyet, Director of Nhat Hai Technology Project Joint Stock Company (OIC), said that in the domestic market, businesses can do well to find customers and agents to distribute real products. The function of the company and have been received by consumers. However, when coming to the international market, enterprises have difficulties due to lack of information, lack of experience on how to approach partners, not enough understanding of culture, environment, tastes of foreign markets.

Along with difficulties and challenges coming from enterprises difficult to find, approaching customers, when coming to foreign markets, enterprises also have problems related to insurance, foreign exchange, payment, transactions, guarantee etc. According to enterprises, these issues need more financial resources to maintain so almost only large enterprises can carry out, and for small and medium enterprises, not only by subjectively, but they also do not know how to do and not enough financial capacity, personnel capacity to implement.

Moreover, according to Mrs. Mai Thi Thuy, Chairman of the Small and Medium Enterprises Association of Hanoi, small and medium enterprises find it difficult to participate in international trade because of lack of capital, lack of support and preferential policies. Especially, in order to develop, businesses have to change their minds, change their perception, understand the international market in order to find the right direction etc. This is an undesirable weakness of small and medium enterprises. are business households, village etc.

"Trimming" conditions for small and medium enterprises

Commenting on the support as well as supporting tools for the international trade, Mrs. Nguyen Thi Anh Tuyet said that besides the support from the management agencies, the banking sector has also been very active in this problem. The service policy of the bank is done quite well, clear, caring customer more thoughtful. In particular, payment services and foreign exchange are much better than in previous years, convenient and faster. However, according to Mrs. Tuyet, businesses still need more innovation, to create more effective for businesses such as loan procedures, guarantees are streamlined, trim the conditions that small and medium enterprises are difficult to meet.

In fact, international trade has many supporting services such as guarantee, reserve L/C, derivative rate, logistic service according to international standards and regulations. Import and export of food and beverages, in order to prevent exchange rate risk, enterprises always have to have a reserve currency, businesses still can not access the bank's forex prevention services because it will take an additional costs, while this is not a regular risk in the context of foreign currency market stability.

Therefore, experts said that in the context of international economic integration, besides improving the business investment environment, the role of the State in developing small and medium enterprises is very important. These agencies can arbitrate, protect the property rights of individuals to help small and medium enterprises active in international transactions. In addition, agencies should also actively raise awareness, understanding of enterprises, ensure the rights and interests of enterprises in Vietnam.

In addition, to support businesses and to increase profits, banks are increasingly active in providing services and policies related to international trade facilitation. Accordingly, banks have been offering solutions for businesses including a full range of business activities of small and medium enterprises, from capital management, protection, and expansion of business activities, improve profitability, cross-border business. These solutions are designed specifically to help small and medium enterprises make bank transactions more convenient, so they can focus more on business development.

In addition, banks continue to offer promotions to reduce costs for businesses, reduce procedures etc. To help businesses access services more easily. Therefore, businesses need to be aware, change the mind, accept the cost of additional support services to avoid risk, unnecessary damage.

By Hương Dịu/ Huu Tuc