The bank-enterprise connection programme had created a common spillover effect for the business community, production, and business households in the area, creating favourable conditions for businesses to access bank credit capital with appropriate interest rates to maintain and develop production and business.
According to the statistics of the Hochiminh City branch of SBV, as of September 30, 2019, SBV, together with the People’s Committee of the district and some commercial banks in the area, organised a thematic connection in the field of agriculture of the rural regions in Cu Chi district with total committed capital of 8.858 trillion dong to 729 individual customers and cooperatives.
Besides thematic connection activities, the districts in Hochiminh City also organised meetings with local credit institutions. Accumulated from the beginning of the year, the total committed capital in these connection programmes had reached 15.98725 trillion dong, with 398 borrowers.
Besides, at the beginning of this year, 15 credit institutions registered credit packages with the total committed loan amount of 269.262 trillion dong. Until then, the disbursement amount was 183.252 trillion dong for 4,958 customers. Thus, in all three bankingbusiness activities in Hochiminh City, in the first nine months, commercial banks disbursed over 200 trillion dong to 6,085 customers.
According to Nguyen Hoang Minhdeputy director of Hochiminh City Branch of SBV, the BankingBusiness Connection programme in the previous time had brought about positive effects in solving difficulties in capital and interest rates for businesses in challenging economic context, when it was difficult for companies to access bank capital with low-interest rates. However, recently, Vietnam’s economy had positive changes, money market and banking activities had been more stable, interest rates were maintained at reasonable levels.
Therefore, since 2016, the bank-enterprise connection programme had improved and innovated in the way of organising the implementation in the direction of intensive, streamlined and maximising the role of local governments.
From the successes achieved in previous years, the 2019 bank-business connection programme continued to be implemented in the same manner as in past years and was combined with other local business support activities. Regarding the support objects of this year’s programme, in addition to providing centralised capital for production and business, there were other five priority sectors and fields such as rural agriculture, exports, small and medium-sized enterprises, high-tech enterprises and auxiliary industry enterprises.
This year’s programme also focused on lending to support the development of critical products of Hochiminh City, various forms of support such as reducing old loan interest rates, increasing lending limits to meet the needs of business capital; or lending to new customers with the maximum interest rate not exceeding 6.5 percent per year for short-term loans and around nine percent per year for medium and long-term loans.
The bank-enterprise connection programme had created a common spillover effect for the business community, production and business households in the area, creating favourable conditions for businesses to access bank credit capital with appropriate interest rates to maintain and develop production and business.
Primarily through the bank-enterprise connection programme, it also created a dialogue mechanism between bank management agencies and enterprises, transmits monetary policy information, and criticises the main mechanism explicitly in the course of real life.
Businesses participating in the banking connection programmeenterprises had directly removed difficulties in disbursement process of credit institutions through bridges and arbitration roles of the local SBV. From here, the administrative reform programmes in capital transaction activities were also improved, creating a driving force for the development of banking services.
Especially when the lending interest rates for banking connection programmesenterprises disburse short-term capital at around 6.5 percent per year as a reference point so that other ordinary commercial loans cannot raise interest rates too high. That had maintained a stable lending interest rate for a long time and created a belief in the policy in the dong in society.
