Bank connection program

Borrow capital to accelerate production at the end of the year

Many opinions say that, in the context of a slow economic recovery and low profits, it is timely for banks and businesses to "come together" with reasonable lending interest rates, especially during the period of accelerating production at the end of the year.

Mr. Le Van The - Chairman of the Board of Directors of Hop Phat Construction and Structure Company Limited said that the company's current orders have increased by about 20% - 30% compared to the same period last year, so Hop Phat needs to borrow more capital. Specifically, the company needs nearly 30 billion VND in working capital and wants to borrow from the bank an amount equivalent to 40-50%. At the signing ceremony with the bank in the bank - business connection program, Mr. The signed to borrow working capital at an interest rate of 6% from ACB bank (much lower than the interest rate of 9% that the company borrowed last year).

Mr. Le Van The shared: "Participating in the program connecting businesses with banks, I find it favorable for our development. From there, we can access capital with reasonable interest rates, creating motivation for the development of businesses."

Bank-business connection events attract a large number of participants.

Similarly, Mr. Nguyen Dang Hien - General Director of Tan Quang Minh Production - Trading Company Limited (Bidrico), Vice Chairman of the Ho Chi Minh City Industrial Park Business Association said that up to now, Bidrico has achieved a growth rate of 22% compared to the same period last year. Due to stable production and business activities, banks have created favorable conditions for accessing credit, especially working capital to meet the acceleration of production at the end of the year.

As Vice President of the Ho Chi Minh City Industrial Park Business Association, according to Mr. Nguyen Dang Hien, businesses are entering the production cycle of Tet products and will start launching them to the market from November. Therefore, participating in connecting with banks to get suitable interest rates is an opportunity to help businesses compete more easily on product prices: "I think businesses should participate in opportunities to approach banks to grasp information. In the coming time, the opportunity to have capital with low interest rates will come to businesses very conveniently, especially during the production cycle of Tet products will be even more convenient. After each time like that, we think we have to find better opportunities to find capital for our company in using working capital or investing in additional fixed assets for the company".

Connection programs provide many opportunities for businesses to borrow capital at suitable interest rates.

According to the State Bank of Vietnam, Ho Chi Minh City branch, in the city in the first 9 months of this year, the bank-enterprise connection program has been implemented with an amount of VND 490,138 billion for 153,151 customers (reaching 96.13% of the total credit packages registered by credit institutions since the beginning of the year).

Diversify ways to unlock capital sources

According to Ms. Ly Kim Chi - President of the Ho Chi Minh City Food and Foodstuff Association, in the context of high capital demand, businesses in the food and foodstuff industry are all met by banks, there is no phenomenon of capital congestion. Currently, some small and medium enterprises are still stuck in financial accounting, making it difficult for banks to approve loans.

Ms. Ly Kim Chi suggested: To support businesses, the bank's policy should be faster. Of course, businesses must meet the bank's requirements. But for good manufacturing and exporting businesses, the bank should have somewhat easier conditions when approving loans. This choice will help the capital flow better.

The food industry needs more working capital to boost goods to serve people's needs during Tet.

From the reality of recent bank-business connection conferences, Mr. Nguyen Duc Lenh - Deputy Director of the State Bank of Vietnam, Ho Chi Minh City branch, said that the State Bank is always ready to provide appropriate and flexible credit limits to commercial banks with good growth rates to meet the capital needs of businesses.

In addition, the State Bank of Vietnam will continue to organize programs connecting banks and businesses with each industry group that brings economic growth momentum such as: small and medium enterprises, rural agricultural enterprises, export enterprises, supporting industries and high-tech enterprises. At the same time, it will continue to improve business activities, aiming for credit growth by the end of the year.

Mr. Nguyen Duc Lenh said: "Interest rates are already low, many banks have been improving management efficiency, reducing input costs such as shortening transaction times, reducing management costs... thereby reducing lending interest rates. Business associations have reflected that businesses have expanded their markets. This is the main driving force to promote credit growth. When cash flow is created and capital is circulated effectively, then economic growth can be promoted."

The State Bank of the City will support and create favorable conditions for businesses to borrow capital.

The banking industry has set a credit growth target of 15% this year. With substantial support from the bank-business connection program, many believe that the capital source will be effective, contributing to the achievement of this year's credit growth target.

Source: https://vov.vn/kinh-te/chuong-trinh-ket-noi-ngan-hang-doanh-nghiep-kenh-tiep-suc-von-hieu-qua-post1129210.vov