HFIC and BIDV sign cooperation agreement, increasing preferential capital for Ho Chi Minh City

HFIC and BIDV signed a strategic cooperation agreement to promote socio-economic development of Ho Chi Minh City - Photo: N.BINH

On the afternoon of October 17, Ho Chi Minh City State Financial Investment Company (HFIC) and the Bank for Investment and Development of Vietnam (BIDV) signed a strategic cooperation agreement to promote the implementation of credit programs to support socio-economic development in Ho Chi Minh City.

This event marks an important step in establishing a strategic partnership between the two sides, aiming to effectively coordinate the implementation of Resolution No. 98 of the National Assembly on piloting a number of specific mechanisms for the development of Ho Chi Minh City and Resolution No. 09 of the City People's Council on interest rate support for projects lent by HFIC in priority areas of socio-economic development in Ho Chi Minh City.

Mr. Nguyen Ngoc Hoa - Chairman of the Board of Members of HFIC - said that the cooperation is a joint effort between the two units, realizing the desire of Ho Chi Minh City, which is to have more preferential interest rate capital for development projects.

Especially with Resolution 98, HFIC was chosen by Ho Chi Minh City as the focal point to support interest rates for stimulus programs applied to a wider range of subjects, opening many new industries and occupations such as digital transformation projects, green transformation projects, environment and social security projects from culture, education to sports...

"Expanding the field requires a huge amount of capital for lending," Mr. Hoa commented, adding that with HFIC's resources, the unit can only partially solve the problem because it does not have the function of mobilizing deposits from the people like a bank. HFIC usually finances capital from its own resources.

Mr. Hoa said: "However, with Resolution 98, Ho Chi Minh City has a supplementary mechanism of capital from two basic sources. In which capital comes from all profits made and the second way is capital from equitization of state-owned enterprises. With the second source, it takes a lot of time."

Along with the stimulus program, the city's social security development investment projects, especially infrastructure projects... are also very heavy. Every year, HFIC still performs the function of issuing urban bonds, but the scale of the projects is very large.

For the urban railway system of Ho Chi Minh City alone, with experience from the first metro line, the city is determined to build the remaining 7 lines with its own resources to proactively choose suitable technology. This also poses a capital problem.

Mr. Le Ngoc Lam - General Director of BIDV - said he was honored to accompany the implementation of socio-economic development programs of Ho Chi Minh City, and committed to effectively implementing the projects with HFIC.

The signing of this agreement not only opens up new cooperation opportunities between HFIC and BIDV but also helps the two units build a long-term strategy to improve the operational efficiency of each unit, affirming the common determination in maximizing the potential of each party and actively contributing to the sustainable development of Ho Chi Minh City.

At BIDV, Binh Hung branch will be the focal unit, responsible for implementing credit programs and closely coordinating with HFIC to realize common goals.

The two units agreed on the form of project appraisal.

Under this cooperation, HFIC and BIDV will coordinate to implement syndicated lending activities according to the current credit mechanism in accordance with the provisions of law and the State Bank of Vietnam within the scope of projects lent by HFIC, or act as a focal point for syndicated lending in priority areas of socio-economic development in the area.

The two units will agree on the form of appraisal, on that basis consider and decide on the rate of participation in syndicated credit, create conditions and closely coordinate to build and perfect this credit program.

In addition, with its advantages, BIDV will provide HFIC and customers participating in the project with comprehensive, quality banking services at preferential costs and support optimal business performance such as: consumer loans, payments, deposits, overdrafts, employee salary payments via accounts through BIDV's payment system and other banking products and services with appropriate preferential mechanisms.

Source: https://tuoitre.vn/hfic-va-bidv-ky-thoa-thuan-hop-tac-tang-them-nguon-von-uu-dai-cho-tp-hcm-20241017190912766.htm