Bank-Business Connectivity Program well implemented in HCMC

The Bank-Business Connectivity Program has been implemented in Ho Chi Minh City for the last three years and provided low interest loans to over 4,500 businesses with a total amount of VND67.5 trillion (US$3.16 billion).

Representatives of banks sign an agreement to provide a credit package of VND128 trillion for businesses in HCMC in 2015 (Photo: SGGP)

That was revealed at a conference hosted by the State Bank of Vietnam (SBV) in Ho Chi Minh City and the city People’s Committee yesterday.

Last year the program organized 31 events to connect banks with businesses. Nearly 1,200 businesses, households and traders and 62 cooperatives were loaned VND40,056 billion (US$1.88 billion), triple the number in 2013 and double initial norm set by the city.

Banks disbursed as per pledges, businesses used capital for right purposes and made payment on time.

The banks also restructured debts for 10,590 customers with a total liability of VND218 trillion, reduced interest rates for 177,481 customers with the total loan of VND439 trillion.

HCMC People’s Committee Deputy Chairwoman Nguyen Thi Hong said that the program purpose was to provide low interest bank loans to businesses, especially those in five priority fields and small and medium enterprises.

The committee has instructed SBV’s HCMC branch to coordinate with the Department of Industry and Trade, HCMC Business Association and district administration to take the imitative in looking for and accessing enterprises in need of capital and indentify their difficulties.

District people’s committees gathered information about businesses and proposed the State Bank to consider providing them with low interest loans.

Although the number of businesses able to get loans is not high but the program’s achievements are remarkable, said Ms. Hong.

At the conference she announced a new credit package of VND128 trillion (US$5,997 million) for the program this year with 19 commercial banks signing an agreement to join in.

SBV deputy governor Nguyen Dong Tien said that together with the price subsidization program, the Bank-Business Connectivity Program showed HCMC efforts to solve difficulties for businesses, help them reduce production costs, improve financial ability and competitiveness, boost production and trading to develop the economy.

The city’s economy has showed signs of recovery with the Gross Domestic Product growth reaching the highest rate for the last three years of 9.6 percent.

The State Bank Governor considered the city’s program as a typical modal to multiply nationwide. So far the country has mobilized VND250 trillion (US$11.71 billion) for programs to bring together banks and businesses. Over 300 talks have been held to listen to and solve businesses’ difficulties.

By Thuy Hai – Translated by Hai Mien

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