Banks' release' preferential credit, enterprises still complain

VCN - Accessing capital is still very difficult due to the strict lending regulations of banks.
Banking industry difficulties forecast to continue in 2023: analysts Banking industry difficulties forecast to continue in 2023: analysts
Big banks want to increase capital from the beginning of 2023 Big banks want to increase capital from the beginning of 2023
Finance-banking sector fulfills 2022 goals: minister Finance-banking sector fulfills 2022 goals: minister
Banks' release' preferential credit, enterprises still complain
In addition to credit, banks also offer many financial solutions to support enterprises. Photo: BIDV

Giving strength to the economy

In the document issued on December 22, the SBV asked banks to reduce operating costs, administrative procedures, and unnecessary expenses to have room to reduce lending interest rates and strictly control credit risk for investment in corporate bonds and real estate. The SBV emphasized that it would monitor cases where banks continued to raise interest rates and take measures to deal with these banks.

According to preliminary statistics, about 20 credit institutions and foreign bank branches have publicly announced credit programs and products with preferential interest rates. According to the Vietnam Banks Association (VNBA), by mid-December 2022, after the State Bank of Vietnam (SBV) loosened the credit room and provided solutions to support liquidity for banks, many banks announced a commitment to reduce lending interest rates in the last months of 2022 with an amount of about VND 3,500 billion, the interest rate was reduced from 0.5-3% per year. The preferential capital flow was mainly for enterprises in 5 priority areas, import-export enterprises and green credit.

At Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), with an additional credit limit of about VND 20,000 billion and a loan balance of more than VND 1.2 million billion, this bank said it was accelerating disbursement to meet the needs of year-end payment of the enterprises. VietinBank Deputy General Director in charge of Operations Nguyen Hoang Dung said that from now until the Lunar New Year, VietinBank would spend an additional disbursement limit of VND 5,000 billion and reduce the interest rate by 20% compared to the current lending interest rate for outstanding loans in VND for the demand for purchasing, consuming and exporting vital agricultural products in the Mekong Delta.

Orient Commercial Joint Stock Bank (OCB) has also announced a series of reductions in loan interest rates for individual customers and preferential interest rates for enterprises from 8% per year. OCB representative said that the issuance of the decision to reduce interest rates, especially for real estate loans at this time, of OCB was expected as one of the practical "remove" to help customers in need of buying houses and land fulfil their plans, thereby helping the real estate market to "warm up" in the year-end period.

In addition to capital policies, many banks also deploy flexible financial solutions for corporate customers. For example, to accompany import-export enterprises, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) implemented incentive programs such as a 50% reduction in trade finance service fees and international money transfers on the BIDV digital banking application iBank…

According to experts, the year-end and new-year crops always make enterprises need much capital, mainly credit capital. Therefore, leaders of the State Bank have repeatedly called on banks to reduce deposit rates and lending rates to support enterprises and the economy. ''The spirit is to reduce costs and interest rates to support enterprises. This is the direction of the Prime Minister and the State Bank. Any bank unable to do so should report it to the State Bank so that we can take measures to support it", Standing Deputy Governor Dao Minh Tu said at a conference in mid-December with commercial banks.

Enterprises still have many worries

Some enterprises said that they have begun to be reduced lending interest rates and access credit at the end of the year. However, stable interest rates and favourable access to capital were always desired by enterprises.

According to Dr Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small and Medium Enterprises, the supply of credit capital for small and medium enterprises still faces many difficulties. The main reason was the difficult economic situation, which greatly affected enterprises' production activities and debt repayment ability. Moreover, small and medium-sized enterprises had small capital and a lack of viable business plans, and business plans often changed, especially the problem of insufficient collateral for loans. In addition, he also commented that the mechanisms to support access to capital for small and medium-sized enterprises through the guarantee of the Credit Guarantee Fund and the Small and Medium Enterprise Development Fund had not been achieved as expected due to the operating regulations of the Funds.

As for the 2% interest rate support package, most enterprises "shake their heads" due to accessing hardly because they are not eligible to meet it. Specifically, they are not being disbursed because of lack of collateral, no VAT invoice as required because they only have the retail invoice, and the locality has no regulations on a low income, so they do not have the foundation to determine. In addition, many enterprises said they wanted to meet and borrow support packages due to complicated processes and procedures from registration, approval, disbursement, and settlement. Enterprises were also concerned about being inspected by regulatory agencies before, during and after receiving interest-supported loans.

In addition, some enterprises are concerned about changes and fluctuations in lending rates, when banks may only reduce interest rates for a short time and then increase them to the senior level. According to reflection, the average bank lending rate usually ranges from 10-16% per year for unsecured loans; the interest rate ranges from 10-14% per year for mortgage loans. Therefore, Mr Nguyen Dinh Tung, General Director of Vina T&T Group, expected that by 2023, the capital flow would be reopened so that agricultural product importers and exporters could stably invest in raw material areas and meet export orders. A representative of seafood enterprises stated that he wanted banks to ease regulations for enterprises to access loans.

By Huong Diu/ Binh Minh

Related News

Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Aiming for 16% credit growth and removing credit room allocation

Aiming for 16% credit growth and removing credit room allocation

VCN - A representative of the State Bank of Vietnam (SBV) said that the SBV is gradually innovating its credit management methods, aiming to remove the mechanism of allocating credit room to each credit institution.
Researching and proposing amendments to 2014 Customs Law to meet the requirements of innovation

Researching and proposing amendments to 2014 Customs Law to meet the requirements of innovation

VCN - After 10 years of implementation, the Customs Law has been effective in reforming administrative procedures and protecting national sovereignty. However, in the context of innovation requirements, it is necessary to continue reforming specialized inspections and focusing on digital transformation.
Outlook for lending rates in 2025?

Outlook for lending rates in 2025?

VCN - The economy is forecast to continue to recover strongly from the end of 2024 to 2025, helping credit demand increase rapidly, but lending interest rates may also be under increasing pressure.

Latest News

Personal income tax proposed for interest on some bank savings accounts

Personal income tax proposed for interest on some bank savings accounts

Instead of the current personal income tax exemption on interest from all individual bank savings accounts, the proposal would exempt tax only for low amounts of savings.
Banks set for aggressive bond issuance in 2025 to fuel growth

Banks set for aggressive bond issuance in 2025 to fuel growth

With a higher credit growth goal set by the SBV, banks are ramping up their efforts to secure funding through bond issuance.
Central bank cuts interest rate on bills for first time in 2025

Central bank cuts interest rate on bills for first time in 2025

According to data from the financial data provider Wichart, the SBV issued VNĐ19.6 trillion of bills in the past week. The interest rate on the bills decreased by 0.1 percentage point, from 4 per cent to 3.9 per cent on February 14.
Focusing on inspecting inventory of public assets at units with large and complex assets

Focusing on inspecting inventory of public assets at units with large and complex assets

VCN - According to Official Dispatch No. 1456/BTC-QLCS on inspecting the preparation and implementation of the General Inventory of Public Assets recently issued by the Ministry of Finance, the inspection of the inventory of public assets focuses on units with large asset scale and large number of inventory items, complex assets, and slow implementation progress.

More News

The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

VCN - The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more; the average growth rate of the consumer price index (CPI) to about 4.5-5%.
Fiscal, monetary policies support demand stimulation, price stabilisation

Fiscal, monetary policies support demand stimulation, price stabilisation

These efforts, in conjunction with the implementation of monetary policies and other macroeconomic policies, aim to solve difficulties for businesses and the public, stabilise the macroeconomy, control inflation, ensure the balance of the economy, promote economic growth, and secure social welfare and people’s livelihoods.
Vietnam secures VND 157 billion from state enterprise divestment in 2024

Vietnam secures VND 157 billion from state enterprise divestment in 2024

VCN - The Ministry of Finance reported that in 2024, the divestment of state capital in 5 enterprises (F1) generated VND 157 billion from an initial value of VND 145 billion
Vietnam gears up for potential inflation impact in 2025

Vietnam gears up for potential inflation impact in 2025

VCN - For sound price management and inflation control, Deputy Prime Minister Ho Duc Phoc directed officials to vigilantly track both domestic and international market dynamics. The goal is to proactively develop flexible strategies and solutions, enabling a swift response to any emerging challenges.
VN’s credit conditions in 2025 expected to be stable

VN’s credit conditions in 2025 expected to be stable

The credit conditions for Việt Nam will stabilise in 2025, after improving substantially over the past year, the rating agency VIS is forcasts.
State revenue in first month of the year equal to 14% of the estimate

State revenue in first month of the year equal to 14% of the estimate

VCN - According to the Ministry of Finance, in January - the first month of 2025, the total state budget revenue is estimated at VND275.9 trillion, equal to 14% of the estimate; meanwhile, the total state budget expenditure is estimated at VND134.4 trillion.
Securities 2025 expects a breakthrough in scale and quality

Securities 2025 expects a breakthrough in scale and quality

VCN – The positive factors inherent in the macro economy and the Vietnamese stock market will continue to create the foundation for the market to maintain stability, good liquidity, and growth in both scale and quality in the new year of At Ty 2025, Chairwoman of the State Securities Commission Vu Thi Chan Phuong said.
Cash reserves in stock accounts at six-quarter low amid margin rise

Cash reserves in stock accounts at six-quarter low amid margin rise

These funds are readily available in investor accounts, but remained undeployed as of the year-end.
Five solutions for developing stock market in 2025

Five solutions for developing stock market in 2025

VCN - On February 5, 2025, at the Gong-beating ceremony to open the stock trading at the Ho Chi Minh City Stock Exchange (HOSE), Deputy Minister of Finance Nguyen Duc Chi introduced five solutions for comprehensive development of the stock market.
Read More

Your care

Latest Most read
Personal income tax proposed for interest on some bank savings accounts

Personal income tax proposed for interest on some bank savings accounts

Instead of the current personal income tax exemption on interest from all individual bank savings accounts, the proposal would exempt tax only for low amounts of savings.
Banks set for aggressive bond issuance in 2025 to fuel growth

Banks set for aggressive bond issuance in 2025 to fuel growth

With a higher credit growth goal set by the SBV, banks are ramping up their efforts to secure funding through bond issuance.
Central bank cuts interest rate on bills for first time in 2025

Central bank cuts interest rate on bills for first time in 2025

According to data from the financial data provider Wichart, the SBV issued VNĐ19.6 trillion of bills in the past week. The interest rate on the bills decreased by 0.1 percentage point, from 4 per cent to 3.9 per cent on February 14.
Focusing on inspecting inventory of public assets at units with large and complex assets

Focusing on inspecting inventory of public assets at units with large and complex assets

VCN - According to Official Dispatch No. 1456/BTC-QLCS on inspecting the preparation and implementation of the General Inventory of Public Assets recently issued by the Ministry of Finance, the inspection of the inventory of public assets focuses on units
The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more
Mobile Version