Activities in Investment - Development Bankingbranch
in Dong Nai province
From June 2014 to now, SVB branch in the city in collaboration with the provincial departments, local organizations have organized 5 conferences on linkage between banks and businesses to address difficulties in capital, credit for rural agricultural development; remove difficulties in markets and credit for businesses. The program has connected strongly contagious in the business community, helping banks seek new customers and implementing credit contracts in accordance with the set criteria. So far, commercial banks have signed with 231 individuals or organizations; the loan sales reached VND 1,090 billion, loans balance reached VND 745 billion. Besides, other forms of commitment, such as raising credit limits, raising the level of assets credit have been applies to support for businesses.
Joining the program, despite different professions, companies also are entitled to common preferential rates between 6-7% for the short term, lower than the overall interest rate from 0.5% - 2% / year and 9-10% for medium and long term.
Thuan Huong Trading Production Co., Ltd specializing in the manufacture of exported dried fruits is one of the enterprises getting loans of VND 2,8 billion form Agriculture and Rural Development Bank branch in Dong Nai province to expand production, build cold storage for preservation of products. Mr. Luu Tac Sang, Director, said that the program is useful for the company in getting low-interest loans to expand production to meet demand of the market. Joining the program, enterprise had a great opportunity to reflect the difficulties and obstacles in access to capital and get timely solutions.
According to the Deputy director of the SVB branch in Dong Nai Nguyen Hung Manh, in general, the loans were used for proper purposes by individuals and organizations, bringing economic benefits and contributing to local economic development. Most of the commercial banks have been actively involved in and committed to comply registered, of which, some comercial banks have higher loan sales for business than committment.
"Although the scale and number of enterprises supported through the program remain modest, the program has helped gradually remove difficulties for enterprises to reduce interest expense, improve financial strength and competitiveness. Also, it help banks put capital into production, improving efficiency and achieving capital credit growth
Enterprises should be supported from many sides
Representatives of the SVB branch in Dong Nai said that the program implemented more than a year has brought positive effects for enterprises and banks, but there are still many difficulties and problems, especially from the businesses. In particular, the granting of land use right certificates and property ownership in the province has been slow. Thus many customers have had no legal basis and assets as collateral for bank loans. Besides, economy remains difficult, the ability to absorb capital is limited, commodity market is strong, the real estate market is remaining. Thus the banking industry is difficult to find the loan records and projects feasible, effective, affecting credit growth.
"Another didfficulty of banks is that they find difficult to make decision to disburse loans as most customers are cooperatives operating in agricultural products, agriculture, without collateral properties to mortgage; they most hire land for production causing lack of mortgage loan conditions. Although these units are allow to get unsecured loans or loans without collateral, they are not much enough to serve the needs of business”, said Mr. Strong.
To promote the program, in the coming time, the SVB branch in Dong Nai continued organizing various conferences to work out practical measures to address these difficulties and problems for businesses in the province.
The SBV branche in provinces also suggested the authorities need to support businesses to boost trade promotion, support for the product output, market expansion and facilitate bussinesses to meet the requirement for bank loans.
VND 14,000 billion surplus
According to the SVB branch in the provinces, excess funds are currently more than VND 14,000 billion. The banks are ready to meet the borrowing requirements of organizations and individuals in the province. Currently, the interest rates for loans has decreased appropriately, contributing to lower costs to businesses, reducing costs to products and improving competitiveness for growth.
Linh Phuong
