At the talk about solutions to enhance access to banking credit recently organised by the State Bank of Vietnam (SBV), Nguyen Quoc Hung, Head of Credit Department of Economic Sectors, said on September 30, the credit balance for small and medium-sized enterprises reached 1.476 quadrillion dong, up 12.9 percent compared to the end of 2018 (the same period in September 2018 increased by 12.34%), with 196,689 credit customers.
In particular, outstanding loans for small and medium enterprises operating in industry and construction accounted for about 41%; in commerce and services 54%; and in agriculture, forestry and fishery accounts only 5 percent of total outstanding loans.
By the end of September 2019, the credit balance for small and medium-sized enterprises increased higher than the general credit growth rate of the economy (9.4 percent compared to the end of 2018) and higher than the same period last year.
In the context that this group of enterprises is less able to mobilise capital through the stock market, the support capital sources are from the state budget, the international support capital is still limited, the bank credit capital is still main funding channel for production and business activities.
At the seminar, Standing deputy Governor Dao Minh Tu said that following the resolutions of the Party, the National Assembly and the prime minister’s direction, SBV had implemented drastically and actively in recent years, coordinate with ministries, branches and localities in focusing on elaborating and perfecting support and preferential policies for small and medium-sized enterprises, young enterprises, supporting industrial enterprises and food enterprises.
At the same time, the SBV Board of directors has always thoroughly grasped and directed the whole banking industry to focus resources, promptly meet the capital needs, create favourable conditions for all economic sectors to quickly and timely access, and ensure capital for production and business. In particular, it focuses on improving access to preferential credit policies for businesses.
Specifically, SBV has directed credit institutions to improve credit quality; focus credit on production and business sectors, especially priority areas under the government’s policy, creating favourable conditions in accessing credit capital of enterprises and people.
Secondly, managing interest rates and exchange rates in line with macro balances, market movements and monetary policy objectives, implementing the government’s and the prime minister’s policies on striving to reduce lending rates.
On November 18, 2019, SBV issued Decision No. 2416/ QD-NHNN reducing the maximum short-term lending interest rate in VND of credit institutions to borrowers to meet the capital needs for agriculture and agriculture, villages, exports, supporting industries, small and medium-sized enterprises, enterprises applying high technology from 6.5 percent to 6.0 percent per year.
Thirdly, advise the government to promulgate a decree on preferential credit policies for agriculture and rural areas; assume the prime responsibility in elaborating and finalising legal documents of the banking industry, guiding credit institutions in implementing preferential credit policies for enterprises.
Fourthly, actively organise the conference on bankenterprise connection nationwide, helping to improve access to credit capital of businesses in production.
Fifthly, actively and responsibly in responding to petitions, supporting enterprises in solving difficulties for each economic enterprise, field and industry.
