The State Bank of Vietnam has continuously directed commercial banks to implement various solutions to support credit for individuals and businesses in overcoming difficulties. However, in practice, there are still obstacles. The conference connecting banks and businesses, organized by Binh Duong Branch of State Bank of Vietnam in coordination with the People's Committee of Di An city, aims to remove credit bottlenecks.
Credit institutions will enhance the promotion of solutions to foster business development. In the photo: Customers are conducting transactions at Song Than Industrial Park Branch of Agribank
To support businesses in accessing capital resources
One hot issue raised by many businesses is that interest rates on loans have not decreased as expected. Pham Thi Xuan Trang, Chairwoman of the Binh Duong Textile and Garment Association, stated the reality: "The financial health of businesses is very weak while they are burdened with input costs. The interest rates on foreign currency loans have increased from 2.2 - 3.5% per year to 4 - 5.5% per year. Such foreign currency borrowing rates create additional pressure on export-oriented manufacturing businesses."
Trang also mentioned that there are cases where businesses have been granted a credit limit, but when it comes time for disbursement, the bank notifies them that there is no more credit room available and they have to wait for the state bank to provide additional credit limits. This is a common issue that businesses often encounter at the end of the year. In addition, businesses are in great need of capital but have hardly accessed the 2% interest rate support policy.
“To create favorable conditions for businesses to access and borrow capital, banks need more information about credit packages, reduce foreign currency borrowing costs, and disburse the 2% interest rate support package faster to maximize the utilization of support policies for export-oriented enterprises at this time,” Trang suggested.
Bui Nhu Viet, Vice Chairman of the Binh Duong Wood Processing Association, shared that the banks have proactively reduced lending rates and extended interest payment periods, which is a very positive move. However, the 2% interest rate support policy, along with the inappropriate regulations, especially in the post-audit process, has made businesses hesitant. Furthermore, the valuation of collateral assets and the low value of businesses make it even more difficult for production and export enterprises. The State Bank and the Ministry of Finance need to study mechanisms to support and extend the 2% interest rate support package, promptly resolving obstacles so that businesses can easily borrow capital.
Regarding borrowing to buy social housing, Phan Cao Phuc, Vice Chairman of the Binh Duong Real Estate Association, has proposed that the Social Policy Bank consider reducing legal procedures to facilitate access to policies for the people.
“The legal procedures have been confirmed by the competent state agencies, and banks should not require additional documents. On the other hand, the central bank needs to enhance dialogue with real estate businesses, as this is an opportunity to provide businesses with more information to choose banks with suitable loan interest rates and conditions for borrowing capital,” Phuc proposed.
Continual facilitation
Feedback from businesses, Le Hai Long, Deputy Director of Binh Duong Industrial Park Branch of Vietinbank, believes that the increase in US dollar loans is a common trend in the international market. Therefore, the short-term US dollar lending rate fluctuating between 3-4% per year is a significant effort to share difficulties with businesses. However, the bank will consider further reducing the reasonable US dollar lending rate while minimizing costs to have room for cheap US dollar and Vietnamese dong loans in the final period of the year.
Answering the questions about the procedures in real estate loans that make it difficult for borrowers to access capital, Nguyen Tuan, Director of BIDV Nam Binh Duong, shared that the bank has implemented multiple interest rate reduction phases and preferential loan packages to support businesses. However, businesses have difficulty accessing the interest rate support package due to legal procedures that are all entangled in state management agencies. Banks, being enterprises themselves, must comply with the regulations of the law. "We empathize and share the same shoes with real estate businesses, as banks and enterprises are mutually affected by the difficulties faced by each other," explained Tuan.
According to Tuan, the bank has provided significant support to businesses through various legal channels, such as actively working with local authorities, departments, and agencies to connect businesses; participating in feedback and proposals from licensing to compensation support, land recovery, fire prevention and fighting procedures, environmental regulations, in order to streamline the process of document procedures. However, there are certain tasks that the bank cannot replace businesses in doing.
Regarding the common challenges faced by businesses in asset valuation and unreasonable enterprise value, Nguyen Van Phuoc, Deputy Director of Binh Duong Branch of State Bank of Vietnam, shared that each bank has different asset valuation policies. The valuation of land depends on either the State's price or the market price. As for assets on the land such as machinery, equipment, and raw materials, they fall under the jurisdiction of credit institutions for appraisal. The obstacles in the real estate sector are related to legal regulations, which the State Bank acknowledges and will make recommendations for appropriate provisions.
Emphasizing the spirit of companionship and sharing with the people and businesses, Phuoc affirms that the banking sector is always ready to implement solutions to overcome difficulties and meet the demand for credit capital for economic development in the province.
Reported by Thanh Hong – Translated by Vi Bao
