With the recovery momentum returning, businesses need to speed up credit

VCN - In recent instructions, the monetary policy regulator continues to urge banks to implement practical and effective solutions to strive for system-wide credit growth, which will be 5-6% by the end of the second quarter of 2024.
With the recovery momentum returning, businesses need to speed up credit
Many businesses are trying to take advantage of opportunities from the economy to recover. Illustration photo: H.Diu

Strive for credit growth in the first 6 months of about 5%

At the recent regular Government meeting, credit growth was slow (by the end of May it only grew 2.41%), difficult access to credit capital is one of the problems and limitations that the Prime Minister has raised. government pointed out. Therefore, the head of the Government has continued to request proactive, flexible, timely and effective monetary policy management; coordinate synchronously, harmoniously and closely with reasonable, focused and key expansionary fiscal policies. At the same time, it is necessary to create favorable conditions for businesses and people to access credit capital; Continue to reduce lending rates.

It can be seen that the issue of promoting credit growth has been mentioned a lot in the directions and administration of the Government and the State Bank (SBV) in recent months. Many banks expressed that although deposit interest rates are on the rise, lending interest rates still remain low, combined with abundant liquidity, banks always want to find customers to lend.

Currently, banks are lending to corporate customers at an average interest rate of 4-6%/year, and to individual customers at 6-8%/year. At the same time, banks also offer many preferential credit programs, "tailored" to each specific field and industry, thereby creating favorable conditions for businesses to access credit.

In addition, two major economic "locomotives" are also promoting a series of preferential credit programs, connecting banks and businesses to create credit traction for the whole country, resulting in credit growth twice as high as the national average growth rate.

In Hanoi, by the end of May 2024, total outstanding credit debt is estimated to reach over 3.8 million billion VND, an increase of 5.09% compared to the end of 2023. Hanoi Statistics Department said that organizations Credit institutions in the area have launched many preferential credit programs and packages, applying flexible interest rate policies.

In Ho Chi Minh City, credit growth by the end of May is estimated to reach 3.61 million billion VND, an increase of 4.5% compared to the end of 2023. However, the problem is how the banks and businesses can meet each other in the credit relationship because barriers to accessing credit are still many, especially for small and medium-sized enterprises or businesses that have encountered difficulties and losses in business.

So that businesses have effective business plans to access loans

According to Mr. Le Tien Truong, Chairman of Vietnam Textile and Garment Group (Vinatex), market demand is gradually recovering, helping textile and garment exports in the first quarter of 2024 increased by over 10% compared to the same period last year. But to recover further, businesses need resources and capital to implement production and business plans. Meanwhile, Mr. Truong said that production and business results in 2023 are bad, so the trend of credit capital in 2024 for businesses will be lower. For example, in the fiber industry, in 2024, yarn production and trading enterprises will only be approved for a limit 20% lower than in 2023, so many businesses will lack working capital to import raw materials.

Emphasizing the losses if we do not support the fiber industry to recover, Vinatex Chairman stated that world markets such as China, Bangladesh, India... are ready to compensate for the amount of fiber that Vietnam loses, so if we do not quickly If Vietnam quickly recovers, the Vietnamese fiber industry will lose its ability to dominate the market. Therefore, this person recommends that commercial banks need to accompany businesses and work in detail with businesses to see that the profit margin on revenue of each unit, business, and subsequent orders is better than previous orders, the number of orders this year is greater than last year... to consider and grant appropriate credit limits.

In addition, Dr. Mac Quoc Anh, Permanent Vice Chairman and General Secretary of the Hanoi Association of Small and Medium Enterprises (HANOISME), has repeatedly proposed that Hanoi's small and medium enterprises account for 98.2% of the total number of registered businesses, creating jobs for 55.1% of the total workforce, contributing over 40% of GRDP to the City, but many small and medium-sized enterprises, especially micro-enterprises, still have difficulty with loan procedures. When commercial banks require mortgages, many businesses in this area lack and are weak in this condition. Also regarding collateral conditions, Ms. Nguyen Hai Binh, General Director of STP Group Joint Stock Company, said that the enterprise assets are attached to water bodies, while the regulation is that mortgage assets are assets attached to land.

Given the above situation, representatives of business associations and businesses expressed their desire for banks to research appropriate unsecured lending mechanisms, or lending based on feasible business plans for businesses to have more favorable access to capital.

Faced with the difficulties of businesses, the State Bank of Vietnam has directed banks to actively review projects to ensure timely credit supply for feasible projects, speed up loan approval, and apply appropriate measures. Flexible methods and forms of loan collateral in accordance with regulations; promote the diversification of appropriate banking credit products and services... The State Bank has even asked banks not to let businesses have effective business plans that fully meet the provisions of law without access to loans; Regularly organize bank-business connection programs...

However, to promote and pull credit growth to achieve the target, experts believe that it is necessary to synchronously implement many solutions to support economic growth and macroeconomic stability. In particular, it is necessary to support enterprises in the output market, improve the business environment in a favorable direction as well as combine preferential mechanisms and policies for enterprises to invest and apply new technology... so that enterprises both recovering and creating conditions for businesses to absorb capital effectively, avoiding the risk of bad debt.

By Bình Nam/Huu Tuc

Related News

Hundreds of tons of imported raw cashew nuts stuck in quarantine

Hundreds of tons of imported raw cashew nuts stuck in quarantine

VCN – A company is facing problems with plant quarantine regulations when carrying out procedures to import over 384 tons of "raw cashew nuts, originating from Tanzania" from a bonded warehouse in Dong Nai.
Recovery underway, businesses need to accelerate credit

Recovery underway, businesses need to accelerate credit

VCN - In recent directives, the monetary policy regulatory body continues to urge banks to implement practical and effective solutions to strive for credit growth across the system, aiming for a 5-6% increase by the end of Q2 2024.

Latest News

Firm policy framework crucial for creative economy: Experts

Firm policy framework crucial for creative economy: Experts

A firm policy framework is crucial to nurture the creative economy, one with “unlimited” development potential, according to Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM).
Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts have helped spur its economic growth, Director of the Canada-Vietnam Trade Council Julie Nguyen and Professor of Business at Centennial College in Toronto Luis Silva shared the view.
Accelerated green economy transition efforts needed for 2024 GDP target

Accelerated green economy transition efforts needed for 2024 GDP target

Vietnam’s 2024 economic growth target of 6.5% is challenging, with weak consumption demand and exchange rate risks, so signals a pressing need for hastening energy transition towards a green economy, a conference to launch the Vietnam Annual Economic Report 2024 heard.
Foreign media spotlights Russian President Putin’s Vietnam visit

Foreign media spotlights Russian President Putin’s Vietnam visit

Russian President Vladimir Putin’s freshly-concluded state visit to Vietnam has grabbed the headlines of many foreign media outlets, including those in Russia.

More News

Total credit demand expected to improve in the last months of the year

Total credit demand expected to improve in the last months of the year

VCN - According to evaluations, the overall domestic credit demand has not yet seen a strong recovery. Therefore, promoting credit growth must continue to be a priority through various solutions.
Vietnam Energy Outlook Report 2024 launched

Vietnam Energy Outlook Report 2024 launched

Vietnam's target of achieving the climate neutrality by 2050 is not only technically feasible but also the most cost-effective scenario, according to a report developed by Vietnam’s Electricity and Renewable Energy Authority, the Danish Energy Agency (DEA) and the Embassy of Denmark in Vietnam.
Russian President Vladimir Putin starts state visit to Vietnam

Russian President Vladimir Putin starts state visit to Vietnam

Russian President Vladimir Vladimirovich Putin and his entourage arrived in Hanoi on June 19 night, starting a state visit to Vietnam from June 19-20 at the invitation of General Secretary of the Central Committee of the Communist Party of Vietnam Nguyen Phu Trong.
President Putin’s state visit to strengthen Vietnam - Russia ties

President Putin’s state visit to strengthen Vietnam - Russia ties

During his 5th visit to Vietnam on June 19 and 20, President Vladimir Putin and a high-ranking delegation of Russia are scheduled to have talks and meetings with senior leaders of Vietnam and some other activities, thereby continuing to enhance and develop the two countries' relations.
Deputy PM orders strict punishment against fishing violations

Deputy PM orders strict punishment against fishing violations

Việt Nam has recorded significant achievements after seven years of efforts to have the illegal fishing label lifted, notably the completion of a legal framework, the good management of fishing vessels, sound traceability, and enhanced law enforcement efforts.
New decree to set stage for innovative start-up economy

New decree to set stage for innovative start-up economy

Vietnam is developing a decree to promote innovative start-ups, with the aspiration of building an innovation-driven economy in line with digital transformation and sustainable development.
"Three-legged tripod" for Vietnamese goods to take part in global through e-commerce

"Three-legged tripod" for Vietnamese goods to take part in global through e-commerce

VCN - Mr. Gijae Seong, Managing Director of Amazon Global Selling Vietnam shares about the changes in the cross-border e-commerce industry in Vietnam and efforts to promote the success of Vietnamese products and brands when participating in the global e-commerce supply chain.
Vietnam eyes lucrative Halal market with growing Muslim population

Vietnam eyes lucrative Halal market with growing Muslim population

Experts see a golden opportunity for Vietnam to tap into the booming Halal market, fueled by a surging global Muslim population.
Increasing consumer protection responsibility in the electronic environment

Increasing consumer protection responsibility in the electronic environment

VCN - Along with its robust growth, e-commerce has introduced numerous new issues and challenges for economic and social development, including the area of consumer rights protection
Read More

Your care

Latest Most read
Firm policy framework crucial for creative economy: Experts

Firm policy framework crucial for creative economy: Experts

A firm policy framework is crucial to nurture the creative economy, one with “unlimited” development potential, according to Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM).
Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts have helped spur its economic growth, Director of the Canada-Vietnam Trade Council Julie Nguyen and Professor of Business at Centennial College in Toronto Luis Silva shared the view.
Accelerated green economy transition efforts needed for 2024 GDP target

Accelerated green economy transition efforts needed for 2024 GDP target

Vietnam’s 2024 economic growth target of 6.5% is challenging, with weak consumption demand and exchange rate risks, so signals a pressing need for hastening energy transition towards a green economy, a conference to launch the Vietnam Annual Economic Report 2024 heard.
Foreign media spotlights Russian President Putin’s Vietnam visit

Foreign media spotlights Russian President Putin’s Vietnam visit

Russian President Vladimir Putin’s freshly-concluded state visit to Vietnam has grabbed the headlines of many foreign media outlets, including those in Russia.
Total credit demand expected to improve in the last months of the year

Total credit demand expected to improve in the last months of the year

VCN - According to evaluations, the overall domestic credit demand has not yet seen a strong recovery. Therefore, promoting credit growth must continue to be a priority through various solutions.
Mobile Version