HCM City (VNS/VNA) -Enterprises, especially small and medium-sized ones and start-ups, need toenhance financial transparency and connect with banks if they want to obtainloans, according to experts.

“It is the same when seeking toraise capital,” said Lam Minh Chanh, founder of business school BizUni andco-founder of the Management and Startup Group.

Many SMEs still have unclearinvoices when buying and selling, he said, warning that they need to be moretransparent with respect to sales and revenues.

The pandemic has severelyaffected the global economy, including Vietnam, he said.

The immediate financial impactis significant for most big and small businesses, and how to raise capitalduring this difficult time to maintain operations and overcome this toughperiod is one of the top concerns of businesses, he said.

"It usually takes us threeto six months to raise capital. During the epidemic period, businesses havedied before they raised capital.

“Therefore, this is the periodwhen businesses have to depend a lot on internal resources. Businesses mustexplore all ways to sell their products to earn revenues to first [survive]."

Dang Van Thanh, Chairman of TTCGroup and the Vietnamese Brand Club, said the current high lending interestrates are a burden for businesses while banks are wary of lending due to riskconcerns.

He said businesses should usetheir “savings,” which could be cash or even assets bought during profitabletimes to help them survive this tough time.

Concurring with him, Ngo CongTruong, Chairman of John & Partners Consultancy and Education JSC, said, “SMEsshould use their savings at this time … Another important thing is thatbusinesses need to cut all unnecessary expenses."

Firms, especially start-ups,should focus on their core business segments, and stop ineffective ones andeven close down if they do not see bright prospects, to start a new one.

Chanh said Vietnameseentrepreneurs often place a lot of enthusiasm and personal finances intostart-up companies, and so when their companies face difficulties or failures,it takes more time for them to close the business compared to theircounterparts in foreign countries.

Thanh said to control costs,businesses have to invest in technology and digital transformation.

The opportunity after thepandemic is real, and firms should reconsider their input sources to reducereliance on imports, expand domestic market share, and seek new markets tocapitalise on the opportunities on offer after the pandemic, he added./.