Hanoi improves access to business loans

Nearly VND3 trillion was signed

Some 10 credit institutions and 11 businesses addressing the banking-business connection program, held in Hanoi on September 26, witnessed the signing with total capital of nearly VND3 trillion.

According to Hanoi Department of Industry and Trade Deputy Director, Tran Thi Phuong Lan, outstanding loans from the banking-business connection program have constantly increased, with an average raise of about 3.15 times in the last two years. This figure reached VND170.068 trillion by August 31, a 3.1-fold increase compared to the end of 2015. In addition, around 120 commercial banks and branches in Hanoi committed to implement the banking-business connection program with total amount of VND125.641 trillion from the beginning of the year to August 31, 2016. Of which, commitments for loans to the market stabilization program of essential goods totaled VND14.428 billion.

The State Bank of Vietnam (SBV) Hanoi Branch Deputy Director, Hoang Viet Trung, said that lending interest rates in the banking-business connection program are lower than the general rate of 1.5-2 percent a year. In 2015, interest rates continued to range from 6-7 percent a year for short-term loans and 8-9 percent a year for medium and long-term loans. In particular, some businesses in priority sectors with good credit ranking enjoyed incentive interest rates of 4-4.5 percent a year. In the first eight months of this year, although dong deposit interest rates slightly increased, credit institutions maintained lending interest rates similar to 2015 in order to support businesses in the connection program.

Expansion

The banking-business connection program has made significant contributions to reducing difficulties for businesses and helped them expand trade and production.

Hanoi People’s Committee Deputy Chairman, Nguyen Doan Toan, said that with more than 200,000 businesses now operating in the city, the demand for capital to develop trade and production remains high. Toan proposed that commercial banks in the city focus on disbursement in the last three months of this year and the first half of next year, following commitments under the banking-business connection program.

Nguyen Hanh