To implement Directive 03/CT-NHNN dated July 18, 2013 of the Governor of the State Bank of Vietnam (SBV) on solutions for monetary and credit policy regulation and banking activities for the last months of 2013, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) advocates adding credits for prioritised sectors regulated by the Government and guided by the SBV, including supporting industries, rural agriculture, exports, companies with of high-tech application, and small and medium enterprises. The lender gives special priority to export credit.
Over the past 50 years of glorious development, all customers, both personal and corporate, have to admit that Vietcombank is the primary leader of the banking industry in Vietnam in terms of import and export payment in general and to export credit in particular.
Vietcombank has achieved marked growth in export credit activities since 2011. In the context of economic slowdown, especially in 2011 when the Government and the SBV adopted tightened credit policies, the lender has tried its best and concentrated resources to maintain and develop its strength of export - import financing in general and export financing in particular. Lending value in 2012 rose 65 percent over 2011 to VND102 trillion (US$5 billion) while revenue of export paper discount payment climbed 13 percent to nearly VND18 trillion. In the first eight months of 2013, loan value increased 11 percent year on year to nearly VND69 trillion while the revenue of export paper discount payment approximated VND12 trillion, equal nearly 80 percent of the value in 2011. In late 2012, outstanding export loans leaped 64 percent over a year earlier. As of end-August 2013, outstanding export loans surged 75 percent to VND32 trillion over end-2011 and 7.1 percent over end-2012.
Amid economic downturn, many enterprises scaled down their operations and some even temporarily halted their operations. In this context, Vietcombank select high-profile industries and companies with sustainable operations by adopting reasonable customer policies (even accepting lower interest rates and short-term profit decrease). Vietcombank’s export credit has been focused on Vietnam’s advantageous products like seafood (shrimp, fish, etc), garments and textiles, rice, foodstuff, footwear, clothing, furniture and rubber. These industries are major prioritised fields of the Government.
In addition to carrying out major government-backed credit programmes for some prioritised borrowers, including good-performing exporters, rice traders and seafood traders, which may bear the lowest rate of 6.5 percent per annum, Vietcombank has actively deployed concessional lending programmes for prioritised borrowers, with short-term VND loans carrying interest rate of 5 percent per annum. In 2013, the Hanoi-based lender is implementing some concessional lending programmes. (i) The preferential VND lending programme with a planned scale of VND50 trillion has disbursed VND64,171 billion and had outstanding loan of VND32,786 billion. (ii) The preferential USD lending programme with a planned scale of US$1 billion has disbursed US$1,737 million and had outstanding loan of US$834 million. (iii) The VNDloan, USD interest rate programme had a planned scale of VND10 trillion. (iv) The short-term soft loan programme for 50 named customers (the best of the system) has disbursed VND3,279 billion and had outstanding loan of VND3,212 billion. These soft loan programmes are widely published on mass media as well as via direct contacts with customers. Borrowing procedures and forms are streamlined and published by Vietcombank because the ultimate goal of the bank is to facilitate corporate customers to access and use soft loans effectively in their production and business activities.
Vietcombank’s programmes in 2013 in response to policies backed by the Government and the SBV have received positive consent from enterprises and customers.
From now until the end of 2013 and 2014, Vietcombank will focus all resources and measures to achieve credit growth target set for 2013. Specifically, the bank will: (i) deploy short, medium and long-term programmes/products and soft loan programmes, (ii) review and assess Vietcombank’s market share to apply flexible, competitive policies for specific groups of customers to increase the market share, (iii) develop the customer base to bring more benefits to Vietcombank, (iv) add credits to borrowers regulated by the Government and the SBV, and (v) review and accelerate credit disbursement for effective production and business projects.
With its contributions to export - import payment in general and export credit in particular, Vietcombank has facilitated and supported exporters to stabilise business operations and live through difficulties to achieve sustainable development and promote national economic development.
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