VBSP support start-up business to financial access

(VBSP News) VBSP provided the financial scheme to support  the young to start up business in 2017-2010, being approved by the Provincial People's Committee, which helped many youth union members to build effective production and business models.

Nguyễn Hữu Quang, Yên Bái commune, Yên Định district borrowed loan from VBSP to develop farming model

In September 2017, Hoang Ngoc Ha established Trung Thanh Company specializing in processing agricultural products in Trung Thanh commune, Nong Cong district with products such as canned pineapples, sweet corn, baby corn for export. In 2018, as deploying production plan, Hoang Ngoc Ha was given a loan of VND 1 billion from the preferential capital supporting young start up to have more resources to standardize some production steps to meet with export market demand. The company also increases regular number of employees from 30 to 70 employees.

Mr. Hoang Ngoc Ha, Director of Trung Thanh agriculture products processing Co., Ltd in Nong cong district said that for start-ups, young people starting up business, capital is very important. With preferential funding, enterprises can invest more in equipment and machinery as well as production lines to support production, serve the workers as well as make products for the company.

From VND10 billion capital of the preferential credit scheme to support young people to start up business in the stage of 2017-2010, Vietnam Bank for Social Policies - Thanh Hoa branch in cooperation with provincial Youth Union chose to fund some effective projects of agricultural production, handicraft and trading services. Up to now, there have been 118 projects of Youth Union members in 14 districts in the province received the preferential loans to young start-ups, creating 229 jobs in localities.

However, since capital is limited whereas the demand for start-up loans of young people is quite high, many young entrepreneurs have not been able to access preferential credit. According to the statistics of Thanh Hoa Youth Union, there are still 460 projects having applied for startup loans with total amount of nearly VND 78 billion.

Nguyen Ba Tung, Director of Hoang Tung công ty may mặc Co., Ltd said more “For the young starting up business like us, the most difficult thing is funding source. We do not have access to any preferential loan. With current operation status, we really want to access preferential capital of the State for business development”.

Mr. Le Van Trung, Secretary of Thanh Hoa Youth Union added “We have reported to the Provincial People's Committee and authorities to propose for additional funding for start-ups of young people in the coming time from from VND 10 billion to VND 50 billion or higher depending on the province's ability to support”.

Annually, Thanh Hoa has nearly 35,000 young people without stable jobs. In the whole province there are only 1500 youth-owned economic units. This is a modest figure compared to the potential of a large province with a large number of young people. The timely capital funding will provide incentives for young people to carry out start-up ideas, carry out production and enrichment activities in the locality, thus, contribute to job creation for the people including young people and to local socio-economic development.