Banks are aggressively pumping cheap capital into businesses at the end of the year.

Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch - Photo: MT

Unblocking capital flow for businesses

Through connection programs, management agencies as well as banks can grasp the difficulties of businesses to advise and support businesses in borrowing capital.

On October 14, the State Bank of Vietnam, Ho Chi Minh City branch, the Ho Chi Minh City Department of Industry and Trade and the Ho Chi Minh City Business Association coordinated with Asia Commercial Joint Stock Bank (ACB ) to organize a conference connecting banks and businesses "Unblocking capital - Welcoming opportunities".

Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch - said that by the end of September, total outstanding credit in the area reached 3.7 million billion VND, an increase of 5.83% compared to the end of last year.

In the first 9 months of this year, the State Bank of Vietnam, Ho Chi Minh City branch, coordinated with the Department of Industry and Trade, the City Business Association and the People's Committees of districts to organize 31 dialogue conferences and sign loan agreements.

Of which, direct loan agreements signed at the conference with a total amount of VND 58,144 billion, for 4,495 customers and businesses.

According to Mr. Lenh, the good implementation of the bank-business connection program is an important factor to promote credit growth in the area in recent months and the rest of the year. Thereby contributing to the good implementation of monetary policy tasks, supporting businesses and promoting economic growth.

Seasonally, capital demand usually increases in the last quarter of the year. The banking sector has been organizing activities to support businesses and provide capital for the last months of the year.

To promote growth, the State Bank will continue to implement connection programs between banks and small and medium enterprises, and businesses in the fields of agriculture, forestry, fishery, and import-export.

In addition to understanding the difficulties of businesses to provide timely advice and support, through connection programs, banks diversify in capital support, not only secured by loan assets but also proven by signed contracts and cash flow.

In the real estate sector, in the past 3 months, real estate credit has shown positive signs. Loans for home purchase have begun to increase.

Ho Chi Minh City's economy has shown signs of improvement.

Banks are launching a series of preferential interest rate loan packages for businesses - Photo: MT

Mr. Tu Tien Phat - General Director of ACB Bank - commented that the economy of Ho Chi Minh City has shown signs of improvement. However, public investment and the real estate market are still slow, and consumer demand has not recovered significantly. To solve these challenges, the cooperation of the banking system is needed.

ACB alone has launched a bank-business connection program, committing to lend VND5,000 billion in cheap capital to Ho Chi Minh City businesses with key industries at a preferential short-term interest rate of 5.5%/year, and long-term loans at an interest rate of 6.4%/year, for customers introduced by the Ho Chi Minh City Business Association (HUBA).

In addition, ACB also implemented a green credit program with a scale of 4,000 billion VND with short-term and medium-long-term loan interest rates from 5.7%/year.

"By the end of September, credit growth at ACB had reached 14%. The bank will continue to provide capital to the economy, lending flexibly to support businesses, promoting the growth of ACB and businesses.

In addition to SMEs, ACB also promotes lending to large projects, key projects of the Government such as 500kV projects, leading enterprises related to exports and public investment," Mr. Phat emphasized.

Source: https://tuoitre.vn/ngan-hang-manh-tay-bom-von-re-dip-cuoi-nam-cho-doanh-nghiep-2024101418121469.htm