Continuing the agenda of the 5th Extraordinary Session of the 15th National Assembly, on the afternoon of January 15, the National Assembly discussed the draft Law on Credit Institutions (amended). Speaking at the session, National Assembly Deputy Nguyen Quang Huan of the Binh Duong National Assembly Delegation proposed adding a provision on support for startups.

National Assembly Deputy Nguyen Quang Huan noted that the draft Law does not contain any provisions addressing support from credit institutions in general, or commercial banks in particular, for startup businesses.

The National Assembly Deputy noted that in developed countries, startups can access loans relatively easily because banks can hire independent consultants to assess the feasibility of a project and then provide financing using the project itself as collateral. In Vietnam, however, borrowers are generally required to provide collateral other than the project. Under normal circumstances, it may take three to five years of accumulation before a business has sufficient assets to serve as collateral, meaning that a startup may only be able to access bank financing after five years in operation.

Therefore, National Assembly Deputy Nguyen Quang Huan proposed that the drafting committee study and add a provision on supporting startup businesses, enabling Vietnam to become a startup nation like other countries around the world.

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Source: Quoc hoi TV