Small and medium-sized enterprises will be offered tax breaks and deferred tax payments, Hung told the final day of the two-day Vietnam Young Entrepreneurs’ Organization (VYEO) congress.

“Small and medium-sized enterprises will enjoy higher the exemption and get more priority,” Hung said.

State Bank of Vietnam deputy governor Nguyen Toan Thang said the central bank will give priority to loans to small and medium-sized enterprises and projects with feasible effects.

The bank also has established two working groups, one in Hanoi and the other in Ho Chi Minh City, to help small and medium-sized enterprises solve financial problems, Thang added.

“I confirm there is no lack of capital,” Hung said. “We should reform administrative procedures for granting loans but only for effective projects. The government suggested the State Bank of Vietnam and the Ministry of Finance give guarantees [on overseas loans] for good projects. In 2009, the government will have policies to underwrite overseas loans of US$1.5 billion to $2 billion for enterprises.”

One enterprise representative said the government should spend half the stimulus package helping small and medium-sized enterprises, with the remainder spent on construction and housing projects.

Vo Quoc Thang, board chairman of the Dong Tam Joint Stock Company, on Sunday was elected chairman of the third VYEO, which represents more than 7,000 enterprises in 52 provinces and cities.

Reported by Le Quang