Enterprises should diversify capital mobilisation channels

The economy is facing high inflation: after the first four months of this year, the CPI increased 9.64 percent from the end of 2010 while Vietnamese enterprises are being put into a dilemma between capital issue and production development. What can be the solution for enterprises to deal with the capital issue?

To find the solution for the capital problem, firstly Vietnamese enterprises must find ways to save themselves before asking for help from banks. The capital for production and business will be not necessarily from only commercial banks.

The capital can also be raised from different channels outside the banking system. Particularly, enterprises should have a credible association to be able to carry out buying and selling activities on credit via issuing valuable papers to each other to optimise the idle capital sources of each partner for maintaining production and consumption.

In addition, association should be granted authorities to form investment fund institutions, financial associated companies with the capital contribution from member enterprises (especially small and medium sized enterprises-SMEs) in similar operation fields to support each other.

This solution aims to attract investment capital when having feasible business plans or raise capital to invest in stocks of investment funds or finance companies to create direct capital sources for membership enterprises in accordance with the law.

Additionally, the government should issue a policy on binding mechanism between the processing plants with producers or ensuring for providing the input materials and fuels frequently and stably for production plants. However, factories or buyers will also have to deposit a mount of money to ensure its frequent and effective operations. At the same time, the suppliers or sellers must have responsibility for maintaining the credibility on the price and the quantity of goods supply according to the amount of deposited capital.

Notably, together with the efforts in reducing the interest rate, commercial banks should also make the prestige in sharing difficulties with firms when having allowable objective conditions.

Accordingly, banks can freely offer advices for enterprises to invest in effective production sectors, at the same time cooperate with businesses to sponsor or co-sponsor for feasible business and production projects.

Besides, the lenders should give priorities in interest rate for familiar customers.

Posted by VBN on May 25 2011. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry