Boosting credit flows for import and export

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The banking industry will boost credit capital for priority areas, including import and export

The outstanding credit was affected by the Covid-19 pandemic

According to a survey at many joint-stock commercial banks in the province, the current short-term lending interest rate in VND for loans related to import-export activities is popular at 6-9%/ year. Meanwhile, USD interest rates are popular at 2.5-4.5%/ year, depending on the regulations of each bank and creditworthiness of businesses, etc.

At the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), Bien Hoa branch, the outstanding loans to enterprises related to import and export activities account for about 35% of the total loan balance for corporate customers. In which, the majority of export loans are foreign currency loans with USD interest rates fluctuating around 3%/ year.

Meanwhile, most of the branch's loans for import activities are usually VND loans with interest rates of 6-8%/ year depending on the preferential credit program and creditworthiness of enterprises, etc. Usually, businesses borrow capital to import raw materials for the production of goods.

Representatives of some joint-stock commercial banks in the province said that most of the loans for import and export were short-term loans for businesses to seek working capital sources for production and business. In the first months of this year, due to the impact of the Covid-19 pandemic, the import and export activities of many enterprises in the province faced difficulties. As a result, outstanding loans in this activity were also affected.

According to the State Bank of Vietnam (SBV), Dong Nai branch, as of the end of August, outstanding loans for import and export activities in the province reached more than 35.2 trillion dong, decreasing 4. 35% compared to the end of 2019 and accounting for nearly 16% of the total outstanding loans of credit institutions in the area. In particular, export loans reached about 14.5 trillion, decreasing more than 13.2% compared to the end of last year.

Capital flows will be increased at the end of the year

In the remaining months of the year, the need for capital to buy raw materials to produce and meet orders of businesses, especially businesses in the import and export sector, often increases. Therefore, enterprises really need to access appropriate credit sources to maintain and restore production and business.

Mr. Hoang Manh Long, Director of Vietcombank, Bien Hoa branch, advised that the branch regularly boosted loans for import-export enterprises in the area in particular and credit and payment activities related to import and export activities in general. In which, there are many great customers in fields such as leather shoes, garment, wood and wood products for export and so forth.

Mr. Dang Van Diem, Chairman of Dong Nai Young Entrepreneurs' Organization, shared that many small and medium enterprises in the province are facing difficulties in capital sources and production premises. In particular, many businesses want to access capital to invest in machinery and technology to meet orders of their partners, especially foreign customers and partners.

According to the representative of the State Bank of Vietnam, Dong Nai branch, in the last months of the year, the unit will review and direct credit institutions in the area to strengthen strict credit control for potentially risky sectors such as real estate, stocks, etc., and credit balance for customers and group of customers with large outstanding loans; at the same time, continue to implement appropriate credit options, increase credit flows into priority areas as well as implement appropriate credit options and packages for customers affected by the Covid-19 pandemic, including enterprises operating in the import-export sector in the province.

Phan Anh