Support businesses in accessing credit capital

​(News Portal – Dong Nai) - Economic challenges, market fluctuations, and decreased orders have greatly affected the production and business activities of enterprises. This directly affects the ability of businesses to absorb capital. 

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Transaction activities at a commercial bank in Bien Hoa City 

This is also the main reason why credit growth this year in the banking industry is low even though the State Bank of Vietnam (SBV) and the banking industry in the province have made efforts to deploy multiple solutions to enhance their ability in accessing to credit capital for businesses and people.

Some comments reflect on challenges and obstacles in the process of accessing and absorbing credit capital. Currently, most businesses borrow from banks in the form of mortgages with collateral including real estate. In the context of the current gloomy real estate market, credit institutions are re-evaluating the collateral assets (mostly real estate) of businesses, leading to a situation where the value of the collateral assets is low. The decrease leads to a decrease in the credit limit for businesses. There are cases where real estate value decreases due to land being planned while taking out a medium or long-term loan at a bank.

According to the State Bank of Vietnam Dong Nai branch, the banking industry in the province will continue to promote solutions to overcome challenges, support customers, and create favorable conditions for customers to access credit... In which, continue to focus credit on production and business activities, priority areas of strength, potential, and driving force for economic development...

Deputy Director of the State Bank of Dong Nai branch, Pham Quoc Bao, said that access to credit capital also depends on valuation and loan limit on collateral assets. According to regulations, credit institutions have autonomy in business operations on the basis of ensuring compliance with financial safety norms according to the provisions of law and the State Bank of Vietnam. Credit granting is carried out on the basis of agreement between the credit institution and the customer.

However, the State Bank of Vietnam Dong Nai branch requests that credit institution branches in the area continue to consider the issue of collateral and increase communication so that businesses can present and explain their plans, production and business projects, developing the unsecured loan segment, credit-based loans, and goods export contracts. At the same time, actively review and consider cutting fees to create more favorable conditions for businesses and people; proactively develop credit programs and products with reasonable interest rates, flexibly meeting the needs of many subjects and customer segments.

Regarding the idea of increasing the ratio of medium and long-term loans from short-term capital sources, limiting the ratio of medium and long-term loans from short-term capital sources is necessary to ensure liquidity for credit institutions and depositors' interests. At the same time, a credit institution's decision to lend for a short or long term not only depends on the credit institution's own capital source but is also considered by the needs and cash flow of the project/production and business plans of enterprises and customers.

In October 2023, the Provincial People's Committee organized a conference on connecting banks with businesses in the province in 2023. President of Bank for Investment and Development of Vietnam (BIDV) Dong Nai branch Nguyen Duc Toan shared, in the current recovering economy, the strongest monetary support tool for the business community is stabilizing low, reasonable lending interest rates, creating conditions for businesses to borrow capital to serve their investments, production and business activities through credit packages supporting import and export, financing high-tech applications, green industries, agricultural - rural aspects and supporting small and medium-sized enterprises. The branch is ready to provide advices on cash flow, financial situation, debt structure, interest exemption and reduction according to regulations to help businesses operate better and more effectively.

President of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) Dong Nai branch Le Hai Trieu said that currently the branch's outstanding loan balance for preferential credit packages and interest rate support is about 500 billion VND. The contract focuses on the fields of trade, forestry and fishery product processing, construction materials, agriculture... In the coming time, the branch will continue to accompany, listen, and solve obstacles in conditions for borrowing capital from businesses according to regulations...

Vice Chairwoman of the Provincial People's Committee Nguyen Thi Hoang shared that the bank-business connection conference aimed to increase the ability of businesses in the area to access and absorb capital, for exchanging information, and having direct talks between banks and businesses and cooperatives, thereby grasping actual needs as well as challenges and obstacles in the process of accessing policies to promptly provide support.

The Provincial People's Committee will continue to request the State Bank of Vietnam Dong Nai branch to proactively deploy solutions and operate key credit in accordance with the orientation of the State Bank of Vietnam, contributing to promoting the recovery and development of production and business activities; follow the goal of safe and effective credit growth and bad debt control. At the same time, reduce operating costs to continue reducing interest rates on existing and new loans, support and accompany businesses and people to overcome difficulties; support businesses to borrow capital to innovate technology in production...