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.(Photo: VNA)HCM City (VNA) – Credit packages with preferential interest rates offeredto small and medium enterprises (SMEs) in Ho Chi Minh City contributed largelyto the city’s economic growth of 8.3 percent in 2018, heard a conference heldin the city on April 18.
According to Nguyen Hoang Minh, ViceDirector of State Bank of Vietnam (SBV) chapter in Ho Chi Minh City, commercialbanks disbursed 269.5 trillion VND (11.6 billion USD) to assist more than10,000 businesses under the banking-enterprises link-up programme last year. Thisbrought 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. Asof the end March, 1,100 businesses had borrowed more than 9.12 trillion VND (392.5million USD).
Speaking at the event, Deputy Governor of the State Bank of Vietnam Dao MinhTu, said the banking sector will continue its flexible monetary policy to curbinflation and stabilise the marcro-economy, creating a favourable businessenvironment.
More support and credit packages will be offered for prioritised sectors, hesaid.
Banks have made efforts to control lending in risky sectors, and worked withauthorities to remove bottlenecks for businesses, he said, adding that commercialbanks and credit institutions should step up credit programmes and policies,diversify credit products and improve lending procedures.
Tu Minh Thien, deputy head of the management board of HCM City’s High-techAgriculture zone, lauded the credit programmes; however, he said many SMEscannot access the preferential loans which are prioritised for large-scale andtechnology projects.
In addition, several funds to support businesses’ operation in the city, likescience-technology development fund and SMEs credit guarantee fund, have showninefficiency due to incomplete legal framework, he noted.
At the event, commercial banks attending theevent pledged more preferential loans to finance businesses in the city, aswell as support them in global economic integration.
During the event, 16 credit institutions, local Departments of Industry andTrade and Agriculture and Rural Development, and commercial banks inkedmemorandums of understanding on credit assistance for companies, involving indeveloping the city’s key products.-VNA
VNA
