Photo: Vnexpress. According to a survey released by Visa International and AC Nielsen, most Vietnamese still prefer to borrow money from family or friends than a lending institution. 58% of respondents indicated that they simply do not have enough money to warrant opening a bank account: only 50% of respondents in Hanoi and 31% in Ho Chi Minh City have bank accounts. 8% said they were aware of debit cards and 91% were aware of ATM cards. 28% claimed awareness of credit cards. Only 2% of those interviewed had ever taken a loan from a financial institution. Respondents thought gold and foreign currency were the safest investments. Stuart Tomlinson, country manager for Visa’s Vietnam, Cambodia and Laos operations, said that generally speaking, people will open savings accounts before applying for credit cards. He added that there was the misconception in Vietnam that it is very complicated to borrow from a bank and that interest rates charged by the banks are steep; and said … [Read more...] about Vietnamese reluctant to borrow money from bank?
Borrowing money from bank
The Vietnam Chamber of Commerce and Industry (VCCI) and Bac Ha International University will host a seminar themed "Capital Solutions for Vietnamese SMEs: From Bank Views" in Hanoi on April 6, 2012. This is part of the "Supporting small and medium sized enterprises to control corporate finance to enhance capital productivity in production and business" project. It aims to create an opportunity for businesses to express their difficulties in accessing loans, particularly from commercial banks, to listen to the latest information on lending policies from banking experts, get advice, borrowing techniques and methods, and common errors in borrowing money from banks. Military Bank introduced a preferential credit package worth VND10,000 billion for exporters to the gathering. Keynote speeches include "Vietnamese businesses in post-WTO accession: Opportunities and challenges in effective capital mobilisation and use" presented by senior economist Le Dang Doanh; "Limitations of … [Read more...] about “Capital Solutions for Vietnam SMEs: From Bank Views” in Hanoi on April 6, 2012
VietNamNet Bridge - The government has instructed the State Bank of Vietnam to work with relevant ministries to design a mechanism to lend money from national foreign exchange reserves to the government to serve spending. Borrowing money from foreign exchange reserves was a solution put forward at the April government meeting. The resolution released after the meeting said the lending of money from the national foreign exchange reserves aims to provide more capital for investment development and to ensure the nation’s financial and monetary security. The idea of borrowing money from the foreign exchange reserves was put into discussion amid a warning about the lack of money for government spending in 2015. In fact, the Ministry of Finance (MOF) fulfilled 34.5 percent of the yearly tax collection plan in the first four months of the year, an increase of nine percent in comparison with the last year’s same period. However, the revenue from crude oil exports, which … [Read more...] about Government plans to borrow money from nat’l foreign exchange reserves
Nhan Dan - Vietnam's total lending in the first ten months of 2012 rose only slightly by 3.3% compared to the end of last year, reported a central bank official at a seminar in Hanoi yesterday. … [Read more...] about Limited bank loan access keeps credit growth modest
Vietnam Bank for Industry and Trade joined the country's three biggest lenders in cutting rates to ease a fund shortage that threatens to slow economic growth. The Southeast Asian nation's fourth-largest bank by assets, known as Vietinbank, lowered its lending rate for dong loans by half a percentage point to 20.5 percent. Vietnam Bank for Agriculture & Rural Development, Bank for Investment & Development of Vietnam and Joint-Stock Commercial Bank for Foreign Trade of Vietnam all also reduced rates this month. … [Read more...] about Vietnam’s banks cut rates to ease fund shortage