Following the success of the Bank-Enterprise Connection Conferences held in Hanoi and Ho Chi Minh City, on May 8, 2019, the State Bank of Vietnam (SBV) organized another Bank-Enterprise Connection Conference in Da Nang, which was co-chaired by Deputy Governor Dao Minh Tu of the SBV and Mr. Tran Van Mien, Vice Chairman of Da Nang People’s Committee.
Deputy Governor Dao Minh Tu speaks at the Conference
The Conference aimed at removing difficulties in accessing capital sources for the businesses, focusing capital on production and business operations, and contributing to the acceleration of the local economic growth in order to implement the Government's Resolution No.35/NQ-CP dated May 16, 2016 on supporting and developing enterprises to 2020 and the instructions of the Government and the Prime Minister.
In his opening speech, Deputy Governor Dao Minh Tu said that on the basis of closely following the Resolutions of the Party and the National Assembly and the instructions of the Government and the Prime Minister, the SBV has developed the action plans of the banking industry, implemented drastically various solutions to improve the business environment, and increase the national competitiveness to facilitate business development.
Since 2014, the SBV has collaborated with the local People's Committees to implement the Bank-Enterprise Connection Program nationwide. Under the leadership and directions of the local Party Committees, the People's Committees at all levels and with the coordination of the functional agencies, the banking sector has organized many meetings with the businesses to listen to the their feedbacks and to join hands with the local authorities, departments and agencies to remove the difficulties and obstacles for enterprises in accessing to bank credit, helping to boost the local socio-economic development. The organization of the Bank-Enterprise Connection Conferences in 3 major cities this time is exactly for that purpose.
An overview of the Conference
With the efforts of the whole banking system, the credit outstandings 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. The credit institutions operating in Da Nang have proactively sought and connected with the enterprises to promptly understand and remove the difficulties for those enterprises, thereby improving their ability to access to capital resources for production and business. At the last Connection Conference in 2018, the credit institutions in Da Nang committed to providing new loans worth approximately VND 6,965 billion, of which VND 4,682 billion has been disbursed to 1,249 enterprises in the area, and reduced their loan interest rates for 6 enterprises with a total debt of VND 533 billion.
The results of the credit policies and the Bank-Enterprise Connection Program have contributed to helping Da Nang achieve the credit growth of 26.59% at the end of 2018, with the loan outstandings for SMEs reached VND 41,433 billion, thereby contributing to Da Nang’s economic growth of 7.86%.
The above results have shown the efforts of the banking industry and the enterprises over the past time, contributing significantly to the development of Da Nang’s economy ,as well as the performance of the Bank-Enterprise Connection Program.
In order to improve the efficiency of the specific credit programs targeted to supporting the businesses, promptly removing the difficulties and meeting the capital needs for production and business development, according to Deputy Governor Dao Minh Tu, in the coming time, the banking sector would continue to manage the monetary policies in an active and flexible manner, contributing to controlling inflation and stabilizing the macro-economy to create a favorable business environment for enterprises; continue to drastically implement the tasks and solutions in the Banking Sector's Action Plan on improving the business environment and the national competitiveness in accordance with Resolutions No.19, No.35, and No.02 of the Government, creating favorable conditions for businesses’ accessibility to bank loans. In addition, the banking sector would continue to implement solutions to support the credit institutions to focus on production and priority areas; at the same time, the sector would strictly control credit for potentially risky areas, and coordinate constantly and closely with the local authorities to remove the obstacles and difficulties for the enterprises; direct the credit institutions to promote the implementation of the credit programs and policies under the directions of the Government and the SBV; continue to review and improve the lending processes, lending procedures, and diversify the banking products and services.
Moreover, the SBV would continue to coordinate with the line ministries, agencies and local authorities to develop and improve the mechanisms and policies, and effectively implement the credit programs for different sectors and areas in accordance with the Government’s orientations; improve and synchronously implement policies to support SMEs, especially policies on credit guarantees for SMEs to borrow from the credit institutions, and support capital through the SME Development Fund.
Le Hang