"With the spirit of being a companion to the enterprises, the banking sector is ready to provide sufficient capital to meet the credit needs of the businesses in general and the enterprises in Hanoi in particular", said Deputy Governor Dao Minh Tu of the State Bank of Vietnam (SBV) at the Bank-Enterprise Connection Conference in Hanoi on April 16, 2019. The meeting was co-chaired by Deputy Governor Dao Minh Tu and Vice Chairman Nguyen Doan Toan of Hanoi People's Committee.
Strictly implementing measures to support individuals and businesses to improve access to credit
According to the report by Mr. Tran Van Tan, Deputy Director General of the Economic Credit Department, implementing the Government's Resolution No.35/NQ-CP dated May 16, 2016 on supporting and developing enterprises to 2020; Resolution No.19/NQ-CP (in years 2014, 2016 and 2018) and Resolution No.02/NQ-CP dated January 1st, 2019 on improving the business environment and the national competitiveness, the SBV has issued the Action Plan of the banking industry, focusing on drastically implementing six groups of solutions to improve access to credit, support and promote enterprise development. On the basis of closely following the instructions of the Government and the Prime Minister, in the recent years, the SBV has drastically implemented the measures to support the people and the businesses to increase their access to credit, meeting the capital needs for production and business development.
Overview of the Conference
With the efforts of the whole banking system, the credit outstanding of the economy by the end of 2018 increased by nearly 14%, and in the first 3 months of 2019 it continued to increase by 2.8% compared to the end of 2018, in which credit for the businesses reached VND 4,009,160 billion, accounting for 55% of the total loan outstanding of the whole economy, the credit for SMEs reached VND 1,307,000 billion, up by 15.57%, accounting for 18% of the total loan outstanding of the whole economy. Particularly, in Hanoi, by the end of March 2019, the total mobilized capital of the credit institutions within the city reached about VND 3,181,158 billion, up by 2.61% compared to the end of 2018; the total loan outstanding was estimated at VND 1,919,546 billion, up by 2.59% compared to the end of 2018, of which: (i) credit outstanding for agriculture and rural areas reached VND 144,608 billion; (ii) the credit outstanding for SMEs reached VND 308,344 billion; (iii) the credit outstanding for export reached VND 161,961 billion; (iv) the credit outstanding within the Bank – Enterprise Connection Program reached VND 523,260 billion.
The above results have shown the great efforts of the banking industry and the businesses over the past time, contributing significantly to the economic development of Hanoi Capital as well as the efficiency of the Bank - Enterprise Connection Program.
Banking industry is ready to provide sufficient capital to meet the credit needs of businesses
The SBV Deputy Governor proposed that, in the coming time, the SBV entities and the commercial banks in Hanoi should continue to drastically implement the Government's Resolution No.35/NQ-CP dated May 16, 2016 on supporting and developing the businesses to 2020; Resolution No.19/NQ-CP (in years 2014, 2016 and 2018) and Resolution No.02/NQ-CP dated January 1st, 2019 on improving the business environment and the national competitiveness; Directive No.01/CT-NHNN of the SBV Governor dated January 8, 2019 on the implementation of the key tasks and solutions of the banking industry in 2019, and other specific measures as follows:
For the SBV entities: (i) Continue to review and propose measures to improve the institution and the policies, create favorable conditions for the credit institutions to provide in full and diversity the financial products and services; Improving the legal framework on the credit extension of the credit institutions to enhance the capability of supplying capital for production and business operations and the legitimate consumption of the individuals and the businesses; (ii) Continue to drastically implement the tasks and solutions in the Action Plan of the banking industry, contributing to improving the business environment and the national competitiveness, supporting and promoting business development; creating favorable conditions for businesses (especially SMEs) to access credit capital; (iii) Coordinate with the line ministries, agencies and local authorities to synchronously implement the SME support policies as stipulated in the Law on Support for SMEs; (iv) Accelerate the administrative procedure reform, continue to review and propose measures to cut down on the business conditions, facilitating the business operations of the credit institution system.
Deputy Governor Dao Minh Tu speaks at the Conference
The SBV Deputy Governor also requested the credit institutions to take advantage of the support of the local authorities to promote the implementation of the Bank-Enterprise Connection Program, and to actively balance their financial capabilities to improve the operational efficiency and reduce the costs so as to cut down on the lending interest rates within the Program’s framework, with a view to sharing the difficulties with their customers in accessing loans and banking services; on the other hand, strictly implement the regulations and instructions of the SBV on the interest rates and not to collect fees/charges related to the loans, deter black credit, etc.
Implementation of comprehensive solutions by Ministries, agencies, People's Committee, units and enterprises located in the city
According to the SBV Deputy Governor, for the banking sector in the whole country in general and in Hanoi in particular, it is possible to boost the supply of credit capital to serve the production and business operations of the enterprises, but it requires great attention and synchronous implementation of the solutions by the Ministries, agencies, Hanoi People's Committee, the units and enterprises located in the city.
On the side of the Ministries and agencies: it is important to formulate necessary documents providing guidance for the implementation of the Law on Support for SMEs, ensuring that the policies to support SMEs are implemented synchronously and effectively; Implementing synchronously the policies (taxation, fees and charges, land use, training, consultancy, etc.) to support the enterprises investing in such sectors as agriculture and rural development, support industry, etc.
Vietnam Association of Small and Medium Enterprises and the sectoral associations need to actively inform their member businesses about the policies, promote their role as a bridge for businesses to access the credit institutions.
For the businesses, especially SMEs in the area, it is necessary to upgrade, improve the management capabilities and their competitiveness; Comply with the regulations and proactively provide full and accurate information to enhance their creditbility among the credit institutions; Actively participate in the production and business activities along the value chains, the supply chains of products; Create favorable conditions for the credit institutions to control the cash flows and the financial situations of their businesses during the lending processes.
Le Hang