VND281.2 trillion lent in business matching program
HCMC – Banks provided more than VND281.2 trillion in loans for enterprises in HCMC last year in a business matching program, equaling the total amount of loans made in four previous years in the program.
The program last year benefited 21,914 businesses, 2.3 times higher than four years ago. It is being implemented by the HCMC branch of the State Bank of Vietnam (SBV), the HCMC Department of Industry and Trade, district authorities and relevant agencies.
Speaking at a 2016 review conference on the program in HCMC on January 10, Nguyen Phuoc Thanh, deputy governor of the central bank, said the program had been successful thanks to the involvement of authorities. Local government knows what banks and enterprises actually need.
In the program, lender banks should look for enterprises to offer loans, not the other way round, Thanh noted.
Nguyen Thi Thu, vice chairwoman of HCMC, said the tripartite link between banks, district authorities and business organizations and people had contributed partly to the city’s gross regional domestic product (GRDP) of VND1,023,926 billion in 2016, a rise of 8.05% from 2015.
Thanks to this, enterprises have been able to access funds to expand business operations while districts have seen budget revenues rising, she said.
Tran Hai Anh, vice chairman of the HCMC Business Association, said the 2008-2011 period had been extremely difficult for businesses, with bank interest rates surging above 20%. Consequently, many loss-making enterprises were forced to go out of business, and the mutual trust between banks and enterprises was undermined.
This program has helped the two sides rebuild trust. This is an optimistic period for HCMC-based firms, Anh said.
Anh suggested banks expand services to company employees who want to buy a house or a car, provide enterprises with information about foreign customers, offer them advice on investment and development, and give big and small firms equal access to credit.
This year, 16 joint-stock banks and a foreign bank (Standard Chartered) have registered to offer their credit packages totaling VND241.1 trillion and US$10 million through the program. Interest rates are not higher than 7% per year for short-term loans in Vietnam dong and 8-10% for medium and long-term ones.