In 2014, credit of institutions in Binh Duong Province grows by 13.3% within the estimated percentage of 12-14% projected in the beginning of the year targeting for enterprises with righteous credit transition and bad debt reduction. The implementation of credit programs have brought up meaningful outcome promoting credit growth, obstacle removal and market support.
Trust rises in enterprises
In the beginning months of 2014, the government dispatched measures to support the market, making the banks exceed the credit fund while enterprises were harder to access the loan facilities. However, the banking system eyes relatively impressive growth as many more enterprises are accessible to the loan facilities.
In 2014, credit growth of credit institutions in Binh Duong Province is in shape. Photo by T. Hong.
Credit flows
After plenty of times reducing loan interest rates for prioritized fields as demanded by Binh Duong Provincial authority, 5 popular prioritized fields of agriculture, rural economic activities, exportation, SMEs, and supportive industries eye 8 to 11% of interest rate a year, other fields 9-12% a year, marking the reduction of 1-2% a year comparable to previous year.
To share hardship with enterprises, credit institutions have actively adjusted older loans with stronger implementation of credit programs for SMEs. Currently, such loans are accounted for 22% of total debt balance or 28.56% higher than in 2013. Credit funding for agricultural and rural development and economic programs is accounted for 18.76% or nearly 20% higher than in 2013. For loan programs supporting housing, Binh Duong Province is one of the localities effectively implementing the programs to offer VND 88,608 billion of loans.
Mr. Tran Ngoc Linh, Director of Binh Duong BIDV informed of continual market updates and enterprises needs to implement measures and credit programs to specific customers. In fact, capital demands showed signs of growth, reflecting the seasonal actions of the market; however, those were also thanks to recent economic credit growth promotion.
Mr. Nguyen Phu Cuong, Deputy Director of Binh Duong Branch of State Bank of Vietnam gave remarks on expected acceleration of credit funding at year’s end. Looking back to the first half of 2014, credit funding was just at VND 65,000 billion. By June, the amount was VND 70,000 billion – the lower amount than expectation; however, by September to December, the universal growth was strongly at 13.3% as projected by SBV.
Government measures proved effective
The strong credit growth was thanks to credit promotion packages of the government and SBV which have eventually showed effectiveness in the face of improving macro-economy from the beginning of Q3. Credit growth of foreign currencies was thanks to global economic improvements favorable to exportation activities of Vietnam. Besides, credit structure has been transited to prioritized production fields under the orientation. Those were the fields of effects on the whole national economy.
According to Mr. Nguyen Phu Cuong, the credit funding picture in Binh Duong Province, powered by measures of removing obstacles and facilitating capital flows as demanded by central to local authorities, has showed brighter effects. Adjourning 2014, if the credit growth should be at 11.8% nationwide, then, local credit institutions of Binh Duong Province should gain over VND 75,400 in its balance to meet 13.3% of the whole year plan which is relatively high comparable to localities nationwide.
Reported by Thanh Hong – Translated by Vi Bao
