Hanoi (VNA) – More than 1,473,000
ethnic minority households across the country have been benefiting from preferential
credit programmes with total loans worth up to 40 trillion VND (over 1.76
billion USD), reported the Vietnam Bank for Social Policies (VBSP).
The VBSP said it has been providing loans
totalling 166 trillion VND (7.31 billion USD) under 18 preferential credit programmes
and other projects decided by the Government.
credits have benefited all ethnic minority households in extremely disadvantaged,
remote and isolate communes, hamlets and villages. Some households have
borrowed capital from several programmes.
The loans have brought in practical results, contributing remarkably to
economic development and improving living conditions of households and ethnic
minority families in particular.
has focused on enhancing the efficiency of policy credits, particularly in the
northwest, Central Highlands and southwest regions while working with local
socio-political organisations to carry out the job.
Minister, Chairman of the Government’s
Committee for Ethnic Minority Affairs Do Van Chien said the preferential
credit programmes implemented by the bank have helped households, particularly
ethnic minority families, stabilise their lives and reduce poverty sustainably.
However, Chien stressed the need to increase technology transfer and expand
stable markets for products, while concentrated production zones should be
developed in ethnic minority-inhabited areas.-VNA
The conference saw the attendance of Politburo member SBV Governor Nguyen Van Binh. Through resolution 14/NQ-CP, the Government assigned the central bank to work with the Ministry of Science and Technology and the Ministry of Agriculture and Rural Development to implement a pilot credit programme for connectivity models. The SBV has directed credit institutions to provide loans for a number of localities. After two years, relevant banks have disbursed nearly VND7 trillion (about US$280 million) for a credit programme for connectivity models in addition to high technology application and farm export promotion projects in localities across the country, which exceeded their initial commitment of over VND5.6 trillion. The pilot credit programme has helped reduce input costs for the connectivity models’ products through offering preferential credit for the models. Via the pilot programme, the banking sector can not only increase credit growth related to agricultural production, but also promote large-scale, competitive agricultural production, contributing to gradually improving farmers’ living standards and constructing and developing new rural areas.... [read more]
Deputy Prime Minister Hoang Trung Hai has ordered the implementation of measures to remove difficulties and promote the export of agro-forestry-aquatic products. Accordingly, the State Bank of Vietnam (SBV) will continue working with the Ministry of Agriculture and Rural Development to effectively implement monetary policy management measures to increase business access to bank credit programmes to support manufacturing and the export of agro-forestry-aquatic products. The bank said it has specifically designed preferential credit programmes to facilitate the manufacturing and export of agro-forestry-aquatic products. Credit organisations are encouraged to balance capital sources and reduce loan interest rates for prioritised fields – including agriculture, rural development and exports. They are allowed to restructure business debt payment deadlines while improving consumer trust. The maximum interest rate for short-term loans in VND for prioritised sectors is 7 percent annually. The SBV also provides foreign currency loans for agriculture firms at reasonable interest rates and expands Government Decree 55/2015/ND-CP on supporting credit loans for agriculture and rural development, which took effect in July 2015. According to the Ministry of Agriculture and Rural Development, earnings from the export of agro-forestry-aquatic products in June reached 2.6 billion USD, bringing the sectors’ total export revenues in the first half of the year to 14.42 billion USD.-VNA... [read more]
Bank for Investment and Development of Vietnam (BIDV) has became the first join stock commercial bank to offer a preferential credit programme worth 20 trillion VND (921.65 million USD) to the healthcare sector. The programme provides financial support to speed up the implementation of targets set in the Government's Decision 93/NQ-CP on mechanisms and policies for healthcare development. Under the programme, BIDV will offer preferential loans for the maximum term of around 20 years to hospitals to upgrade facilities and purchase medical equipment for easing patient overload and improve the quality of healthcare services. Interest rates on the loans in the first two years will be 12-month deposit rates + the band of 1 percent, but the maximum interest rate must be 7.5 percent, lower than the preferential rate of 7.8 percent that the Development Bank of Vietnam offers policy borrowers. For the next years, interest rates will be 12-month deposit rates + the band of 2 percent. Both central and local hospitals can borrow under the programme. BIDV Chairman Tran Bac Ha said BIDV is not looking to profit from the credit programme but only expecting to join hands with the Government to improve the services and quality of the healthcare sector. The bank's current medium- and long-term deposit rate is at 7 percent, while the lending rate for both terms is 11-12 percent. According to Health Minister Nguyen Thi Kim Tien, Vietnam's hospitals are overloaded, especially those in large cities. Statistics reveal that in Vietnam, hospitals have only…... [read more]
HA NOI (VNS) - Businesses have asked banks to give more unsecured loans based on business credit rating in a move to unclog the credit sources. At a forum held in Ha Noi late last week, Vice Chairman of the Viet Nam Youth Entrepreneurs Association Le Vinh Son said that it was difficult for businesses to access unsecured loans in Viet Nam, even though it was popular elsewhere in the world. Vietnamese banks still gave loans based on mortgaged assets, Son said, adding that it made access to credit difficult for businesses, especially small and medium-sized ones. State Bank of Viet Nam Governor Nguyen Thi Hong said that to increase unsecured lending, the central bank had so far instructed commercial banks to collect business information from the National Credit Information Centre and business credit rating organisations so that they could give loans without the customer mortgaging his assets. The central bank had also implemented programmes to connect commercial banks and businesses so that banks could boost unsecured lending. Hong said that the central bank would take more measures to unclog the credit sources, directing them to production and prioritised sectors. The central bank considered the credit policy a key task this year. However, the credit boosting process must proceed with effectiveness and safety, she said. The central bank would try to boost unsecured loans, while ensuring that the loans are repaid and bad debts limited, Hong noted. Hong also urged businesses to improve their management capacity and have a transparent…... [read more]
The governor of the State Bank has approved nearly 2 trillion VND (94 million USD) in loans to 19 agricultural project under a pilot preferential credit programme tailored for agricultural development. The 19 projects in 16 cities and provinces were announced in the State Bank's Decision 2064-QD-NHNN. This is the third credit package approved by the State Bank under the pilot programme. Accordingly, the Mekong Delta province of Soc Trang will receive the largest sum of 385 billion VND ( 18.1 million USD) for one project, while the northern province of Lao Cai is only borrowing 13 billion VND (613,000 USD). The central province of Ha Tinh plans to implement 3 projects worth 192.14 billion VND (9 million USD), and Ninh Thuan province announced 2 projects worth 155.7 billion VND (7.3 million USD). The two previous packages provided a combined over 2.7 trillion VND (127 million USD) from commercial banks. The pilot preferential credit programme for agricultural development was initiated in the Government's Resolution 14/NQ-CP issued on March 5 this year.-VNA... [read more]
Bui Sy Loi, deputy chairman of the National Assembly's Social Affairs Committee, revealed the impact of preferential credit policies to Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper. What do you think of the results of poverty reduction policies from 2005 to 2012? The National Assembly's supervision results showed that the preferential credit policy was a shining point among the six big policies for poverty reduction during the period 2005 to 2012. About 10 million households were directly provided with preferential loans bearing low interest rates. As a result, a total of 2.4 million households have escaped from poverty. Households in the country's 62 poorest districts who were enrolled in poverty reduction programmes, including the preferential credit programme, were provided with loans totalling more than VND4.6 trillion (US$209 million). The social policy bank said that the overdue debt rate of loans for the poor was below one per cent. This means poor households, including farmers and ethnic minorities, have strived to be productive and to settle their debts. Loan allocation was focused mainly on areas with a high poverty rate such as the Northwest, the Central Highlands and Cuu Long (Mekong) Delta regions. It is obviously that the wide implementation of preferential credit policies for poor households has met the big demand of the poor. Why do you say that preferential credit policy for the poor was a shining point? Direct credit support for the poor was a good policy because we have built a close connection between…... [read more]
HA NOI (VNS) - Commercial banks are seeking ways to boost lending as bank deposits have increased in the past few months. By the end of June, Viet Nam's credit growth in the first half of this year surged only 3.52 per cent compared to last December, the State Bank of Viet Nam reported. HCM City-based commercial banks have launched several preferential credit programmes to boost their lending. NamA Bank Deputy General Director Tran Ngoc Tam said his bank could not wait for businesses to ask for loans and had to find ways to boost lending by any means possible. The bank employees have to get access to potential borrowers and offer them suitable loan packages, reports Tuoi Tre (Youth) online. An executive at the Sacombank acknowledged that apart from boosting lending for large-scale businesses, his bank also sought individual borrowers and small and medium-sized businesses. The businesses still wanted to maintain their production despite the difficult economic circumstances. Sacombank has launched many credit programmes for small and medium-sized enterprises with a VND1 billion maximum loan package. Loan application procedure will be processed within two days. By the end of June, the individual loan packages of Sacombank rose 13 per cent over the same period last year, he said. A deputy general director at a commercial bank in HCM City District 1, who asked not to be identified, said his bank staffers have to get business in any way possible. For individuals, the bank has to approach borrowers through State…... [read more]
HCM CITY (VNS) — With bank lending rates falling sharply in recent months, companies should grab this opportunity to borrow to develop their business, analysts said. Since banks are awash in liquidity, they are offering loans at 9-10 per cent to companies and household businesses, with some even going lower. HDBank said it has earmarked VND500 billion (US$23.7 million) for lending to foreign firms from now through September. The companies can get medium-term loans to modify or build plants and buy equipment and materials but are not required to produce collateral. Those affected in the recent riots will get priority. An official at the State Bank of Viet Nam's HCM City branch said five foreign enterprises affected by riots in the city have outstanding bank loans, and the lenders are considering ways to support them, including by reducing interest rates. The central bank has instructed banks to continue stepping up credit and other activities at export processing zones and industrial parks, he said. Last week 10 banks in HCM City signed a credit contract worth VND718 billion ($34.03 million) with 34 companies in District 10 at 7 per cent interest rate. They are Sacombank, VietinBank, Agribank, Vietcombank, DongABank, ABBank, HDBank, MHB, SCB, and VID Public Bank. Besides this, the banks also have their own programmes to lend to companies in various fields. SeABank is offering dong loans at 6.5 per cent and dollar loans at 4 per cent to import-export companies under a credit programme worth VND300 billion and $20…... [read more]
Compiled by Thien Ly Since mid-April businesses have been able to borrow more easily from banks, many of which have cut both deposit and lending interest rates in addition to launching several preferential credit programmes. Many lenders like VPBank, SeABank, and ACB have reduced interest rates on deposits of less than six months, especially for one or two months, which have been cut from 5.7 and 6 per cent to 5.5 per cent. Interest rates on deposits of over two months are 5.8-6 per cent. Rates on the inter-bank market too have been going down. In the last week of April dong interest rates for various terms dropped: interest on loans ranging from overnight to one month was down by 0.15-0.25 per cent to 1.75-3 per cent per year. These cuts are helping banks reduce their cost of funds and thus their lending rates, enabling them to boost lending. An executive at a commercial bank in HCM City, who asked not to be named, said though credit is showing signs of growing again banks continue to face several difficulties. Though interest rates have plummeted over the last few months people continue to deposit money in banks. According to the State Bank of Viet Nam, by April loans were up by 0.62 per cent for the year and deposits by 3.93 per cent. Awash in funds, lenders are not only reducing loan interest but also offering businesses preferential credit. BIDV, Agribank, Vietcombank, Sacombank, DongAbank, Eximbank, ACB, and ABBank recently signed a…... [read more]
The Office of Government in collaboration with the Vietnam Chamber of Commerce and Industry (VCCI) and relevant agencies will organise a meeting between the Prime Minister and businesses on April 28, 2014 in Hanoi. Ahead of this event, Vietnam Business Forum interviewed Dr Vu Tien Loc, VCCI President. The Prime Minister's Meeting with Businesses 2014 is an important, eagerly awaited event for the business community because this is a direct dialogue channel with the government for businesses to share difficulties in production and business processes, and propose solutions to problems facing them. Could you please tell us about the issues many companies are concerned about? The meeting has become an important forum for the business community to directly share difficulties in production and business activities and propose to the Government new feasible solutions to facilitate enterprises to develop dynamically and effectively, thus contributing to successfully implementing the socioeconomic development objectives and tasks set for 2014 - 2015. This year's meeting will mainly focus on emerging policy issues (tax, customs, import and export, etc.); capital mobilisation and credit access; domestic market development, export boosting and accelerated international integration; access to land and production base; administrative procedures; labour relations; business connectivity and value chain formation. Companies are still facing certain difficulties in production and business activities in the first quarter of 2014. The number of companies dissolved or temporarily suspended rose 9.6 percent year on year to 16,745 in the quarter. Of these, 3,846 firms registered to temporary end operations, up 7.8…... [read more]