Local Economy

Last updated: Monday, March 18, 2019


Actively Funding Business Operations

Posted: Monday, July 23, 2018

As directed by the Government, the State Bank of Vietnam (SBV), the Provincial Party Committee and the Provincial People’s Committee, the banking sector of Quang Nam province has actively cooperated with the local business community and investors to strongly carry out credit programmes, deal with policy obstacles to provide them capital for production and business, and facilitate them to maximise their strengths and contributions to local socioeconomic development.

Mr Nguyen Van Dien, Director of SBV Quang Nam, said, to support and facilitate local business operations, SBV Quang Nam has carried out comprehensive administrative reforms in all aspects and effectively executed tasks and solutions stated in the Banking Sector Action Plan to improve business environment and enhance national competitiveness, and support and develop enterprises as per Resolution 19/NQ-CP and Resolution 35/NQ-CP of the Government. SBV Quang Nam and local credit institutions have paid attention to reforming their administrative procedures between the two sides, between credit institutions and enterprises and modernised procedures to shorten settlement time and reduce costs for people and enterprises.

In addition, SBV Quang Nam directed local credit institutions to execute solutions to expand credit effectively and channel capital for production and business operations, especially timely and adequately for priority, and raise credit quality. The branch guided corporations to actively implement credit programmes for government-backed and SBV-backed industries and domains; directly worked with borrowers to remove hindrances in credit relations, and assisted them to access credit capital in accordance with the law. At the same time, the branch proactively studied and simplified loan procedures, improved appraisal capabilities in order to shorten the time needed to finish loan requests and facilitated them to access funds while still securing loan safety.

As instructed by SBV Quang Nam, local banks have always tried to provide favourable conditions for businesses to access loans by simplifying loan procedures, introducing many packages and preferential credit programmes with reasonable interest rates for customers, especially corporate clients. According to statistics of SBV Quang Nam, about 2,667 small and medium-sized enterprises (SMEs) currently borrow VND8,407.74 billion from commercial banks, accounting for 16.86 per cent of total outstanding loans. The trade - service sector accounted for the biggest share of total outstanding loans with 56.41 per cent, followed by the industry and construction sector with 41.52 per cent and agriculture with 2.07 per cent.

To clear difficulties against enterprises in accessing bank loans, the banking sector of Quang Nam has also accelerated the effective deployment of bank - business connection programmes. At present, 138 companies are borrowing VND2,937.23 billion from banks, accounting for 5.89 per cent of total outstanding loans in the province. Of the sum, new loans made up for 99.27 per cent of outstanding loans and restructured debts accounted for 0.73 per cent. Throughout the programme, commercial banks introduced many credit products with easier borrowing conditions and preferential interest rates, thus enabling more companies to access loans. Dien said, companies joining the connection programme are entitled preferential interest rates supported by commercial banks to spend less on borrowing costs to consolidate their financial situation, restructure production organisation, develop production and business operations, and open investment opportunities for enterprises.

In the coming time, SBV Quang Nam will continue to strengthen cooperation with local authorities to accelerate the implementation of the bank - business connection programme, thus not only help companies ease capital shortages and reduce borrowing costs but also help commercial banks speed and achieve effective credit growth. In addition, the SBV will instruct commercial banks to focus funds for manufacturing sectors, especially priority areas chosen by the Government, coordinate with relevant ministries and branches to clear hardships in carrying out credit programmes for prioritised domains, particularly agriculture and rural development as stated in Decree 55/2015/ND-CP on loans for stimulated high-tech and organic agricultural development.

Cong Luan

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