Financial inclusion for women-led SMEs

Van HaI

Developing women-led small and medium-sized enterprises (WSMEs) is one of the priorities outlined in the Prime Minister’s Decision No.149/QD-TTg on “National Financial Inclusion Strategy to 2025, with vision to 2030”.

According to “Report on the impact of the Covid-19 pandemic on businesses in Vietnam: key findings from 2020 business survey” released by Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank in Vietnam (WB), micro and small-sized enterprises and those in operation for less than three years were those most affected by the Covid-19 pandemic.

The report surveyed nearly 10,200 enterprises nationwide on their views of the pandemic’s impact on the economy as well as the measures they took in response. It found 90 percent of businesses were seriously affected, with many narrowing or suspending operations or even going bankrupt. The number of enterprises ceasing operations set a record high, at in excess of 100,000.

It is the fact that small and micro enterprises, businesses in rural areas, and women-led SMEs are vulnerable groups. They also lack resources for development in the extremely difficult period due to impact of the Covid-19 pandemic.

Identifying WSMEs as a separate customer segment that needs special attention and support in the current period, BIDV has studied and promoted financial inclusion with many favorable solutions tailored to this segment.

The “Covid-19 Relief program for Women-led Small and Medium-sized Enterprises” was signed between The Asian Development Bank (ADB) and BIDV in 2020. With ADB's funding, BIDV has issued a Comprehensive Financial Program to minimize the impact of the Covid-19 pandemic on WSMEs.

Particularly, eligible customers will be supported up to USD10,000 per customer in the form of interest support for structured loans at BIDV and capital withdrawal commitment fee for new loans at BIDV. In addition, customers may also participate in

business consulting courses conducted by ADB consultants with in-depth knowledge on cash flow management, human resource management, product development or new business field and information technology.

For customers borrowing from BIDV for the first time, besides funding from ADB, they are provided comprehensive support for products and services such as loan interest rates reduction by up to 2 percent per year, waiver of account opening and account management fees; no required minimum account balance; preferential fees for international payment, trade finance, guarantee, etc.

BIDV signed a cooperation agreement with the Vietnam Women Entrepreneurs Council (VWEC). Specifically, the two sides cooperate to implement activities to support capacity building and financial access for WSMEs such as organizing conferences, seminars, training on improving financial and business capacity; organizing trade promotion activities; researching, developing financial and non-financial solutions exclusively for WSMEs. The “Digital transformation with SMEs” programme (SME Digitrans) was launched by BIDV with the goal of accelerating the digital transformation process, applying modern technology for WSMEs business management. Accordingly, BIDV offers a two-year fees for using the BMP business management software by Kiu Vietnam Co., Ltd. or the accounting software MISA SME.NET 2020 + MEINVOICE.VN by Misa Joint Stock Company to WSMEs. BIDV also waives connection fee of BIDV ERP Connection between BIDV's iBank and the above-mentioned software.

BIDV also implemented many nonfinancial solutions for WSMEs such as the SheTrades Project by the International Trade Center (ITC), SheMeansBusiness Project by Facebook to support WSMEs in terms of training or financial connection. In the near future, BIDV will proactively develop non-financial solutions and provide online training for WSMEs.

BIDV's comprehensive financial program includes a series of solutions to support WSMEs on training, financial connection, digital transformation, reduction and waiver of interest rates and service fees for existing customers facing difficulties due to the Covid-19 pandemic, and building specialized banking and nonfinancial services products for WSMEs. The program has been implemented strongly and uniformly in accordance with the direction of the Government of Vietnam on supporting WSMEs and financial inclusion.