At present, Binh Duong province-based banks have made efforts to stimulate market through incentive programs of interest rates for small and medium enterprises.
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At production line of Thien Nam JSC.
However, enterprises have yet to pay much to loans, owing to inventory. The program of linking between banks and enterprises officially launching in Binh Duong from Sept. 12 is a concrete measure to solve difficulties between banks and enterprises.
Nguyen Phu Cuong, vice director of the Sate Bank’s Binh Duong branch said that the program of linking between banks and enterprises is a good idea of the Ho Chi Minh City administration. Over the past years, this model has been launched at many localities nationwide and affirmed its significance. The program’s pursue is to link between the State management agencies, banks and enterprises under the mode of supporting loans and solving difficulties for enterprises.
In the other hand, the State Bank’s Binh Duong branch along with local credit organizations in cooperation with departments, agencies, mass bodies, People’s Committee at all levels held direct dialogues with local businesses through conferences, seminars or meetings to disseminate structures, policies of currency, credit and among others.
How is the program of linking between banks and enterprises implemented, sir?
In Binh Duong, the program is launched synchronously and mobilizes strength of the whole political system. Today of Sept. 12, the program is started firstly at Phu Giao district and then will be expanded across 8 remaining districts, towns and Thu Dau Mot city. The program attracts participation of the State management agencies, commercial banks, enterprises, especially People’s Committee at all levels. The participation will help enterprises grasp policies and supportive packages of the State, improving and expanding production and business.
What incentives will be for enterprises when participating in the program?
Implementing indication of the Government, the State Bank of Vietnam, the provincial People’s Committee, since the end of 2013, the State Bank’s Binh Duong branch steered local commercial banks to implement many cuttings of interest rates. At present, lending rate for enterprises is at 7-12%/year.
Expectedly, when participating in the program, lending rates for enterprises will be adjusted properly. Binh Duong branch will collect ideas and petitions of enterprises to help them approach short, middle and long-term loans with the lower interest rates and simultaneously will suggest commercial banks to exploit further potentials of capital sources with incentive rates.
Binh Duong’s credit growth remained slow in the past 8 months. So, can the program spur credit growth as the set goal of 12-14% increase in this year?
In the recent period, domestic economy shows many encouraging changes but remains difficulties. Many enterprises are expecting assistance from the budget and banks. Meanwhile, banks are suffering pressure of credit to minimize inflation. This status makes outstanding loans’ growth be controlled.
The program of linking between banks and enterprises is the good measure to launch the State Bank of Vietnam’s mechanism and policy, especially credit policies for production and business in general and credit for export, rural agriculture, small and medium enterprises and auxiliary industry.
In the coming time, the State Bank’s Binh Duong branch will continue to cooperate with departments, agencies, mass bodies, associations, People’s Committee at all levels and credit organizations to grasp real situation of enterprises. In addition, commercial banks will seek actively out clients and set up list of clients to participate in the program.
In the meantime, commercial banks will actively approach enterprises to meet their demand on capital, spurring development of companies.
With these solutions, we expect to offer more incentive capital sources for clients, contributing to boost up growth of credit outstanding loans.
Reported by T.Hong – Translated by A.C
