HANOI: The Vietnam Banks Association (VNBA) has suggested the government submit a request to the National Assembly for a resolution to support firms and people to overcome difficulties and promote business development like they did during the Covid-19 pandemic.

       Nguyen Quoc Hung, VNBA’s general secretary, said firms are facing many difficulties as most of their reserve resources are no longer available while capital and real estate markets are still in gloomy times.

       Although the government and the Prime Minister have proposed solutions to remove difficulties for firms and people, the capital absorption capacity of the economy is still low.

       In addition, Hung also proposed the government direct ministries and sectors to promote public investment and remove difficulties in legal procedures for unfinished projects and social housing projects.It is also necessary to implement the law on supporting small and medium enterprises and improve the role of guarantee funds for small and medium enterprises.

       Currently, there are 24 guarantee funds for small and medium enterprises in 24 provinces and cities, but their operations are not efficient and need to be improved.

       The government should also review and evaluate the effectiveness of the Small and Medium Enterprise Support Fund under the Planning and Investment Ministry and supplement its capital in order to support firms that have not yet met the conditions for loans at credit institutions.

       Hung also suggested that the government should reduce value added tax for commercial banks to ease them in sharply reducing lending interest rates to support firms.

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       At the same time, the government should allow state-owned commercial banks to increase their charter capital from profits in the coming years through the form of paying dividends in shares from profits left after setting up required funds for the 2022 to 2023 period. — Viet Nam News/ANN