Banks in HCM City continue to provide capital to starved enterprises.
That was the message representatives from more than 200 companies in the city heard at a dialogue with bankers with leaders of the State Bank’s HCM City branch, Vietinbank, BIDV, Sacombank, Dong A Bank, Orient Commercial Bank (OCB) and HCM City Credit Guarantee Fund.
Currently, the prioritised four groups of companies entitled to bank loans with a preferential interest rate of 13 per cent and immediate disbursement were small- and medium-sized enterprises (SMEs), agricultural and rural companies, export-oriented businesses and supporting industry companies, said Nguyen Van Dung, deputy director of the State Bank’s city branch.
“A credit package of more than VND20 trillion ($1 billion) is now available in the city for the four groups,” he said.
Of this, VND11,7 trillion ($562.5 million) was for SMEs, VND3.8 trillion ($182.7 million) for agricultural and rural companies and VND2.3 trillion ($110.5 million) for each of the other two groups, added Dung.
Eleven businesses in the city’s Tan Binh District were to receive VND60 billion ($3 million) from the package on July 9. “It’s not much, but is the first fruit from efforts by the district administration and city Department of Industry and Trade, as well as the city Business Association.”
The State Bank executive encouraged participants to take advantage of the package.
OCB deputy general director Pham Linh said partners IFC and BNP Paribas signed in May a $25 million funding package with his bank to provide financing to OCB to expand funds for SMEs and women-owned businesses. IFC is a World Bank member.
Linh added he knew the Japan International Cooperation Agency (Jica) had agreed to supply financing to Vietnamese SMEs via some other banks.
Meanwhile, the HCM City Credit Guarantee Fund was supposed to assure bank loans for businesses when their assets were not enough for collateral, as long as their investment plans could convince the fund and bankers, said Tran Buu Long, deputy director of the fund.
“You need to convince the fund and lenders with feasible investment projects. If you come up saying that you need loans to do business but without a feasible investment plan, we cannot do our job.”
Some lenders would consider freezing old loans to supply new loans, when borrowers came up with investment plans to create profits.
HCM City’s Investment and Trade Promotion Centre organised the dialogue.