PORTAL - On the morning of March 22, nearly 100 enterprises, trade associations and banks participated in the Conference on connecting banks - enterprises in Binh Duong province in 2023, organized by the Provincial People's Committee (PPC) in collaboration with the State Bank of Vietnam (SBV) of Provincial Branch. Mr. Nguyen Van Danh - Vice Chairman of the PPC chaired the conference.
The conference aims to create conditions to help enterprises connect with banks to access investment capital to remove difficulties and obstacles, boost production and business, and promote socio-economic development.
Difficult to access loans
Over the past time, the SBV has implemented many solutions to support opening and directing credit capital flows into priority areas, credit to enterprises has achieved positive results, the scale of credit capital is increasing. However, there are still many difficulties and obstacles that make it difficult for enterprises to access loans, especially in the context that some enterprises' production and business activities are facing difficulties due to the influence of world market developments.
Ms. Truong Thi Thuy Lien - Vice President of Binh Duong Leather and Footwear Association mentions difficulties in accessing capital
Ms. Truong Thi Thuy Lien - Vice President of Binh Duong Leather and Footwear Association said that it is difficult for enterprises to access bank capital because they must have collateral, while small and medium-sized enterprises must rent factories, they cannot have collateral, only the form of unsecured loan can solve capital for them. However, getting an unsecured loan is a problem. Ms. Lien explained: "The settlement of unsecured loans must have a good business plan and a highly effective economic contract for the bank to be able to lend. At present, with the current economic situation, good business plans are difficult to implement to bring enterprises closer to the bank."
From March 15, 2023, the SBV issued a decision on adjusting the operating interest rate by 0.5-1%. This will contribute to lower lending rates in the near future. However, enteprrises said that the current loan package at joint-stock commercial banks is too high. Mr. Nguyen Khanh Toan - Director of Hoang Ngan Phat Electric Co.,Ltd said that the SBV has made certain efforts to support enterprises to overcome difficulties. However, the moves to reduce interest rates have not yet brought about a positive impact. "The current interest rate is too high, making it difficult for enterprises to reduce production costs, improve competitiveness and lose many investment opportunities" - Mr. Toan said.
Mr. Tran Van Trong - Vice Chairman of the BOD of Viet Huong Group makes a proposal
In addition, the bank's approach to customers is still single, not closely following geographical areas, industrial parks, industrial clusters, enterprises, and business establishments to enhance direct communication between banks and customers in order to share difficulties, access credit and support interest rates for customers. Mr. Tran Van Trong - Vice Chairman of the BOD of Viet Huong Group suggested that the bank should strengthen connections and proactively work with each enterprise to proactively cash flow and timely capital structure. Enterprises with capital sources will have good competitiveness, operate effectively, create jobs for the society, create value, generate a lot of income, and pay state taxes. The banking system also benefits from reducing bad debts and improving credit quality.
Strengthen bank-enterprise connection
Before the difficulties, problems and proposals of enterprises, representatives of banks gave specific answers on the implementation of customer support policies. Banks said they are looking for ways to approach enterprises and learn about difficulties to boost lending, because credit growth has been slow since the beginning of the year.
Representative of Joint Stock Commercial Bank for Foreign Trade of Viet Nam (Vietcombank) speaks at the conference
Mr. Vo Dinh Phong - Director of the SBV of Binh Duong branch said that he will direct credit institutions and banks to continue strengthening propaganda and instructing customers about the Government's interest rate support program; actively coordinate to organize conferences connecting banks - enterprises; speed up the implementation of interest rate support.
In particular, strengthening follow-up and in-depth customer access; providing specific guidance on policies to remove difficulties, legal regulations and internal regulations; promptly resolving customer complaints, difficulties and problems. Inappropriate regulations of the law and internal regulations of the bank will be proposed to be resolved promptly.
In Binh Duong province, there are 79 credit institutions,
banks. In 2022, total mobilized capital reached more than 276,000 billion VND, up
3.53% compared to 2021. Total outstanding loans reached 286,000 billion VND, up
12.38% compared to 2021. Bad debts controlled 0.73% of total outstanding loans.
Particularly from the beginning of 2023 until now, the
total mobilized capital of the credit institution system reached 270,000
billion VND, down 2.2% compared to the beginning of the year, up 0.37% over the
same period last year. Total outstanding loans reached 288,000 billion VND, up
1.05% compared to the beginning of the year, up 10.34% over the previous year.
The decrease in mobilized capital, low growth of credit
shows that the currency and credit market in Binh Duong is moving in line with
the development of the whole country when the conflict between Russia and
Ukraine is still present, inflation in other countries is still and in Vietnam
basically under control but still not subjective, although the money market is
temporarily stable and liquidity is abundant. Especially, from March 15, 2023,
the SBV has reduced the operating interest rate to reduce lending interest
rates, contributing to removing difficulties for enterprises and the economy.
Interest rates on deposits and loans in the area have
decreased. Deposit interest rate in VND is at 0.1 - 0.5%/year for demand
deposits and deposits with term of less than 1 month; 4.9 - 5.8%/year for
deposits with term from 1 month to less than 6 months; 5.8 - 7.2%/year for deposits
with term from 6 months to less than 12 months; 7.2%/year for deposits with
term of 12 months or more. The maximum short-term loan interest rate in VND in
some priority sectors and fields is 5.5%; short-term loan interest rates in VND
are popular at 7.5-8.5%/year; interest rates for medium and long-term loans in
VND are popular at 8.1-10.5%/year. Interest rates for short-term USD loans are
popular at 3.7-5.7%/year; medium and long-term at 5.5-5.92%/year. Deposit
interest rate in USD is at 0%/year for institutional and residential deposits.
Reporte by Phuo Chi- Translated by Thanh Tam