Commercial banks boost lending in southern IPs

Upon implementing a programme on promoting investment credit in HCM City’s key construction works, southern commercial banks since 1999 have provided tens of trillions of dong to speed up development of these projects, according to the State Bank of Vietnam-HCM City arm.
Total lending balance of commercial banks to the city’s industrial zones and export processing zones has so far amounted up to 14.445 trillion dong, 13 times higher than 2000. Additionally, HCM City based commercial banks have injected 668 billion dong into the city’s 88 investment demand stimulation projects.
Tran Ngoc Minh, director of the SBV’s HCM City branch said “in order to meet capital demand of key projects, investment demand stimulation projects totalling 30-40 trillion dong, the SBV since 2000 has worked as the major channel to develop such programmes on supplying capital of the banking system to businesses. The banking sector has also facilitate the city to support lending interest for businesses to implement such projects of the city’s key programmes. For example, the banking sector has spent 61 billion dong assisting resettlement of businesses causing pollution. Moreover, the banking sector has spent 587 billion dong on 39 projects on developing HCM City’s key industrial products and 60 billion dong upgrading vocational training centres.
In a bid to assist businesses in IZs and EPZs to invest and develop production, the SBV’s southern arm has cooperated with the HCM City Industrial Parks and Export Processing Zones Authority (Hepza) to build a rule on state management cooperation between banks and Hepza in order to facilitate businesses to borrow banking loans. Presently, forty eight credit organisations are lending capital to businesses in IZs and EPZs to make investment into infrastructure facilities, pay land rental, purchase machineries, technologies.
Furthermore, loan capital of commercial banks has helped most of nearly 700 businesses in IZs and EPZs efficiently operate their business activities.

 

Category: Finance