Speaking at a conference to link up banks and businesses in HCM City on October 14, Nguyễn Đức Lệnh, deputy director of the SBV’s HCM City branch, said outstanding loans at city banks as of September end were worth nearly VNĐ3.75 quadrillion (US$150.9 billion), up 5.83 per cent from the end of last year and 11.7 per cent year-on-year.
ACB signs loan contracts at the banking-business connection conference held in HCM City on October 14.
This reflects the effectiveness of policies to support businesses and the latter’s ability to absorb capital, he said.
He believed that the credit growth target for this year of 14-15 per cent would be achieved as the last quarter of each year often see a significant rise in capital demand.
Lệnh said that earlier this year, 17 banks had registered to participate in the programme and provide preferential loans worth VNĐ509.8 trillion.
They disbursed over VNĐ425 trillion to enterprises, cooperatives and household businesses in HCM City in the first eight months of this year, accounting for 83.4 per cent of the preferential credit package.
According to the SBV, the city banking industry has organised 31 conferences to bring together banks and businesses, and contracts worth VNĐ58.14 trillion were signed there.
The banking sector plans to continue with its activities to link up with businesses and support initiatives to ensure adequate supply during the final months of the year, he said.
This month the SBV, along with other agencies and departments, would hold three conferences to help small and medium enterprises, agricultural and rural businesses and the import-export sector, which are among the driving forces of economic growth, access preferential bank loans.
Từ Tiến Phát, CEO of ACB, said the city economy has seen green shoots of recovery this year, but difficulties like low public spending, a sluggish real estate market, weak private sector production and business activities, and low consumer demand remain.
The city needs to address these challenges for sustainable and rapid growth in future, and that requires combined efforts by the Government, businesses and the banking system, he said.
His bank committed to a preferential lending package worth VNĐ5 trillion ($201.7 million) to businesses introduced by the HCM City Union of Business Associations, or HUBA.
But it could increase the size to VNĐ10 trillion or even VNĐ20 trillion, he said.
The interest rates will range from 5.5 per cent per year for short-term loans and 6.4 per cent for long-term loans.
ACB is also rolling out a green credit programme to help businesses meet international ESG requirements.
HUBA Chairman Nguyễn Ngọc Hòa said the banking-business connection programme has proven to be effective, helping businesses access soft loans from banks.
Nguyễn Đăng Hiến, general director of the Tân Quang Minh Beverage Company, said: “Businesses should participate in these conferences to access information and capital at lower interest rates, which will be especially beneficial during the Lunar New Year production cycle.
"Our company has participated multiple times to seek opportunities to access working capital and funding to acquire fixed assets."
