Vietnam Banks Ready to Lend VND420 Tln to Local Businesses

Local banks in Vietnam said they are ready to provide loans worth VND420 trillion (US$24.852 billion) to local enterprises, the online VietnamNet said on February 10.

 

Of the total figures, Vietinbank takes the lead with VND100 trillion, followed by BIDV with VND65 trillion to VND68 trillion, Techcombank with VND50 trillion, ACB with VND35 trillion, Sacombank with VND25 trillion to VND30 trillion after the government started to enact the 4 per cent interest rate subsidy worth US$1 billion to boost the economy.

 

Lending rates for exporters are pushed down sharply to 1 per cent-2 per cent per annum, of loans for local businesses at home to 5 per cent-5.5 per cent per annum, the newswire said.

 

However, local businesses are concerned about product sales as the global economic downturn is worsening; therefore they are reluctant to borrow loans from banks.

 

The government of Vietnam is fully aware of that issue and is trying its best to streamline procedures to boost disbursements and see corruption as a real threat to its economic stimulus measures.

 

According to GSO, in January, industrial production and exports, two drivers of the country’s GDP value, were down 4.4 per cent and 24.2 per cent on year. (VietnamNet)