Unlocking credit, supporting enterprises to develop

Since 2020, the Government and State Bank of Vietnam of Vietnam (SBV) have had many timely and practical policies on extending principal debt, exempting and reducing interest rates, maintaining debt groups... and continued giving loans for enterprises that need capital to maintain and restore production and business activities. However, enterprises have still faced many obstacles in the process of accessing capital.

Enterprises in trouble

Truong Thi Thuy Lien, Vice-President of Binh Duong Leather and Footwear Association said: "Banks have not really loosened policies to help enterprises access capital yet. During the pandemic period, the SBV directed relevant units to lower bank interest rates, making enterprises feel extremely excited. But now, interest rates have increased when inflation has gone up. This is really a shock for enterprises. According to Truong Thi Thuy Lien, for enterprises that need to borrow, but do not have mortgage, unsecured loans are the only way. But, banks only consider lending for enterprises that must have good business plan and highly effective economic contracts. With the internal situation of enterprises, it is very difficult for them to have good business plans. It is a dead end where enterprises cannot access bank loans, despite low interest rates.

For people, enterprises with feasible production and business plans, transparent cash flow ..., their ability to access loans will be higher. In picture: Clients are being consulted at BIDV’s Binh Duong branch

In terms of real estate field, Tran Van Trong, Deputy CEO of Viet Huong Group, said that banks stipulate that enterprises that want to borrow money for real estate projects, they must have the certificates of land use rights as mortgage. However, most projects have only had construction permits, contracts, but have not yet had price appraisal dossiers and have not paid taxes yet. Since then, real estate enterprises cannot borrow money. “Banks should give loans for enterprises to implement projects with construction permits. This way will help enterprises remove difficulties", suggested Mr. Trong.

Phan Thanh Lam, Director of Binh Duong Green Renewable Energy Investment Joint Stock Company said that currently many enterprises in the industry have had bank loans, but now they are bearing high interest rates. Recently, the SBV has brought down the basic interest rate, so commercial banks need to consider reducing the interest rate, creating conditions for enterprises to exist.

Enterprises have faced many other difficulties. For example, the overall planning between districts, towns and cities and the zoning plans do not match, leading to the situation that enterprises have to wait for policies to implement their projects.

Undoing the "knots"

Regarding credit access bottlenecks, Doan Long Cuong, Director of the Customer Center of Binh Duong branch’s Techcombank said that Techcombank has implemented credit policies for small and medium-sized enterprises with the credit level up to VND 20 billion. Particularly, the unsecured credit limit is up to VND 10 billion. However, most enterprises have not complied with accounting standards yet, even large-scale ones do not have the position of financial director to connect information, exchange and coordinate in a timely manner. This is one of the breaking points that make enterprises face difficulties to receive capital support from banks.

Sharing more about "knots" that are making enterprises face difficulties, Hoang Thi Thanh Tam, Deputy Director of Vietcombank’s North Binh Duong branch said that in order to remove the bottlenecks, enterprises must be transparent in the process of production and business, especially there must be feasible business plans, then mortgage conditions. “If only relying on mortgage to get loans, banks are not different from pawn shops. Vietcombank is ready to meet industries’ associations and enterprises and discuss each specific issue and case with them so that enterprises can access loans effectively,” said Mrs. Tam.

Vo Dinh Phong, Director of the SBV’s Binh Duong branch said that the interest rates applied by the banking sector are the result of efforts to reduce all costs to reduce the maximum interest rates for enterprises. This needs to have a roadmap, but cannot be reduced immediately. The SBV’s Binh Duong branch is continuing closely guiding and it is expected that the loan interest rates will further drop from 1%-1.5%/year in the second quarter of the year. For enterprises’ recommendations, suggestions and reflections, the SBV will have direct and specific working sessions with associations and enterprises for effective solutions. Currently, banks are opening credit doors for enterprises to borrow capital.

Reported by Thanh Hong-Translated by Kim Tin