Credit program helps promote HCM City’s economic growth

14:08 | 22/04/2019 Finance - Banking

Credit packages with preferential interest rates offered to small and medium enterprises (SMEs) in Ho Chi Minh City contributed largely to the city’s economic growth of 8.3 percent in 2018, heard a conference held in the city on April 18.

Credit packages with preferential interest rates offered to SMEs in Ho Chi Minh City contributed largely to the city’s economic growth - Photo: VNA

According to Nguyen Hoang Minh, Vice Director of State Bank of Vietnam (SBV) chapter in Ho Chi Minh City, commercial banks disbursed 269.5 trillion VND (11.6 billion USD) to assist more than 10,000 businesses under the banking-enterprises link-up program last year. This brought local credit growth last year at 14.69 percent.

Fifteen commercial banks registered to join the connection programme this year, and committed to provide 269.26 trillion VND (11.58 billion USD) of credit. As of the end March, 1,100 businesses had borrowed more than 9.12 trillion VND (392.5 million USD).

Speaking at the event, Deputy Governor of the State Bank of Vietnam Dao Minh Tu, said the banking sector will continue its flexible monetary policy to curb inflation and stabilise the marcro-economy, creating a favourable business environment.

More support and credit packages will be offered for prioritised sectors, he said.

Banks have made efforts to control lending in risky sectors, and worked with authorities to remove bottlenecks for businesses, he said, adding that commercial banks and credit institutions should step up credit programs and policies, diversify credit products and improve lending procedures.

Tu Minh Thien, deputy head of the management board of HCM City’s High-tech Agriculture zone, lauded the credit programs; however, he said many SMEs cannot access the preferential loans which are prioritised for large-scale and technology projects.

In addition, several funds to support businesses’ operation in the city, like science-technology development fund and SMEs credit guarantee fund, have shown inefficiency due to incomplete legal framework, he noted.

At the event, commercial banks attending the event pledged more preferential loans to finance businesses in the city, as well as support them in global economic integration.

During the event, 16 credit institutions, local Departments of Industry and Trade and Agriculture and Rural Development, and commercial banks inked memorandums of understanding on credit assistance for companies, involving in developing the city’s key products.

Theo VNA