“The Banking – Business Connection Program has been an efficient solution for solving difficulties in capital finding of businesses. In the coming time, SBV will consolidate the program to be more appropriate and supportive for enterprises, especially for SMEs, start-ups – one of the current key priorities of the Government”, said Dao Minh Tu, Deputy Governor of the State Bank of Vietnam (SBV) at the conference themed “Enhancing effectiveness of the Banking – Business Connection Program” on October 19, 2017 in Ho Chi Minh city.
Following the success of the conference "Credit Solutions for SMEs" organized by the SBV in collaboration with the Vietnam Chamber of Commerce and Industry (VCCI) in Hanoi in October, the conference themed “Enhancing effectiveness of the Banking – Business Connection Program” would be an important forum of businesses and credit institutions in the South.
The conference was chaired by SBV Deputy Governor Dao Minh Tu, Vice Chairman of VCCI Hoang Quang Phong, Deputy Director of the SBV HCM City branch Nguyen Hoang Minh, and Editor in Chief of Enternews Pham Ngoc Tuan. The conference was also attended by representatives of SBV entities, Heads of Department of HCM City, a number of experts, deputies from Associations, enterprises and local credit institutions, etc.
Mr. Hoang Quang Phong, Vice President of VCCI.
In the opening speech of the conference, Mr. Hoang Quang Phong, Vice President of VCCI, stated that in the first nine months of 2017, there were more than 300 meetings and dialogues among banks and business held over the country. Thereby, banks committed to lend new businesses nearly VND 570.000 billion and disburse more than VND 550.000 billion for those customers are businesses.
Mr Nguyen Hoang Minh, Deputy Director of SBV HCM City branch at the conference.
Banking – Business Connection Program in HCMC is a program of “real disbursement”, which is effectively implemented in line with the business plan committed by relevant agencies, so there haven’t been arising NPLs or overdue debts. To achieve this result, Mr Nguyen Hoang Minh emphasized that Banking – Business Connection Program in HCMC focuses on supporting SMEs, priority fields, and gradually expanding to other economic sectors such as cooperatives and small businesses, etc. In which, the maximum of short-term lending interest rate is 6.5%, while the maximum interest rate for medium and long-term loans are around 8%-10%. According to the assessment of business community, that interest rate is a reasonable level, thereby facilitating the local enterprises to develop efficiently.
Mr Chu Tien Dung, Chairman of HCMC Business Association said that the Program has removed promptly a lot of difficulties for enterprises in accessing bank loans, supporting thousands of enterprises in HCMC to develop steadily over the years, contributing to the growth of HCMC.
While Mr Tran Viet Anh, Chairman of the Board of Directors of Nam Thai Son Company supposed that, apart from supporting enterprises, banks began paying attention to other services. Accordingly, banks can advise enterprise the method to invest and expand the market. In addition to services for businesses, bank can also provide services for their employees.
According to expert Nguyen Tri Hieu, banking-business connection is essential for the economy, because 80% of the total capital of the economy is on the basis of bank loans and 80% of total profit of the banks bases on lending activities, mainly on corporate loans. Therefore, the relation among banks and enterprises is symbiotic and the win-win interest.
The overview of the conference.
In the conclusion speech, Deputy Governor Dao Minh Tu stated, there were 16 proposals relating to banking-business connection program during the conference. “All recommendations are practical and would be gathered to be considered carefully”, said Deputy Governor.
Deputy Governor Dao Minh Tu delivered the conclusion speech at the conference.
In addition to appreciation of the achievements of the Banking- Business connection program in particular and the banking sector in general, Deputy Governor Dao Minh Tu said that, the most outstanding performance of the program is raising awareness of the "symbiotic" relationship among businesses and banks, an equal connection for sustainable development.
Especially, it illustrated the role in connecting social resources, state management, organizations, and individuals in boosting economic development by pouring capital resources and facilitating business access preferential capital.
According to the Deputy Governor, in the coming time, the SBV will pay attention to administrative reform, publicity, transparency and timely information provision enterprises and social community.
In addition, the SBV will continue maintaining the value of VND, curbing inflation in line with appropriate credit growth, etc. Concurrently, exchange rate and foreign currency balance would be managed in line with market demand in accompany with measures of effectively controlling foreign currencies.
In terms of preferential loans, under the Government’s orientations, the SBV has been implementing nearly 10 supportive credit packages for numerous beneficiaries with diversified sectors and fields given priority to develop.
Deputy Governor Dao Minh Tu and delegates.
Thoa Le