Vietnam: The small and medium enterprise development fund shall lend no more than 15% of the Fund's charter capital

08:20, 15/05/2019

This is an important content specified in Decree No. 39/2019/NĐ-CP of Vietnam’s Government on organization and operation of the small and medium enterprise development fund.

Regarding direct lending, lending rate and tenure of the small and medium enterprise development fund are specified in Decree No. 39/2019/NĐ-CP of Vietnam’s Government as follows:

- Lending rate applied to each production and business plan or project shall not be 80% greater than total investment outlay of that plan or project. Total rate of lending of the Fund to small and medium enterprises shall not be 15% greater than the actual chartered capital of the Fund.

- Lending tenure shall be determined depending on capital recovery and repayment capacity of each enterprise and specific conditions of each production and business plan or project, but shall not exceed seven (07) years.

Small and medium enterprises shall have to submit 01 application documentation for borrowing of funds, including:

- Request form for borrowing of fund submitted by small and medium enterprises;

- Documentation on production and business plan or project, other documents evidencing enterprises eligible for borrowing in accordance with Article 16 herein.

View more details at Decree No. 39/2019/NĐ-CP of Vietnam’s Government, effective from July 01, 2019.

- Thanh Lam -

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