Small and medium-sized businesses are "confused" about digital transformation and access to credit
Currently, the percentage of small and medium-sized enterprises accessing official finance is still low, about 25%. The remaining 75% is approached from other sources, such as friends, family and non-bank loans.
.jpg)
Mrs. Bui Thu Thuy, Deputy Director of the Enterprise Development Department (Ministry of Planning and Investment), said at the workshop "Promoting digital transformation support and financial access for small and medium-sized enterprises", organized by the Ministry of Planning and Investment. Planning and Investment collaborated with the United States Agency for International Development (USAID), on July 26.
According to Mrs. Bui Thu Thuy, the business community, especially small and medium enterprises, is still very confused with digital transformation and access to credit. Specifically, on the issue of digital transformation, there are 4 challenges businesses are facing today.
Firstly, the investment costs required for digital transformation are high.
Second, the information technology infrastructure of enterprises is still limited, while the technology trend is constantly updating and innovating, and enterprises are afraid to innovate.
Third, the organizational and management processes, business processes, and supply chain management have not been standardized, and there is a lack of strategy and personnel to develop standard operating procedures.
Fourth, human resources for digital transformation are still limited, lack of access to knowledge and information about digital transformation as well as flexibility in adjusting organizational culture and awareness of digital transformation.
In particular, the Annual Report on Enterprise Digital Transformation 2021 of the Ministry of Planning and Investment also shows that businesses are also concerned about personal data leakage during the digital transformation process.
Regarding access to finance, Mrs. Bui Thu Thuy assessed, currently the percentage of small and medium-sized enterprises accessing formal financial sources is still low, about 25%, the remaining 75% is from other sources, such as from friends, family and non-bank loans.
The reason why it is difficult for businesses to access official capital from banks is that the financial capacity of business owners is not high, because of limitations in cash flow management, transparency of documents and financial reports.
Along with that, enterprises have not met the conditions for bank loans due to collateral issues, feasible business plans, repayment history and other loan conditions and procedures.
Face with this need and necessity, the Department of Business Development (Ministry of Planning and Investment) collaborated with USAID through the Project “Promoting reform and enhancing connectivity of small and medium enterprises (LinkSME), implementing the Program to support businesses in digital transformation for the period of 2021-2025 and many practical support activities to enhance the ability to access diverse financial sources for small and medium enterprises.
ctngoc