Unblocking capital flow for production and business

Reducing lending interest rates is considered an important "lever" to support businesses to operate stably and develop production and business.

Good news for businesses

Since the beginning of 2025, implementing the Prime Minister's direction on lowering interest rates, many commercial banks in the province have simultaneously adjusted lending rates down by 0.5-1%. Vietcombank, BIDV, VietinBank, Agribank branches and many joint stock banks (such as Techcombank, MB, ACB...) have all launched preferential credit packages with interest rates from 5.8-6.5%/year.

Specifically, the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has implemented a preferential loan program for small and medium enterprises (SMEs) with interest rates 1-2% lower than the market, with a maximum loan term of 7 years.

The Bank for Agriculture and Rural Development (Agribank) has launched a credit package "Accompanying small businesses" with preferential interest rates from 5-7%/year, supporting loans up to 80% of capital needs.

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) with the program "Supporting SMEs for sustainable development" with flexible loan limits, competitive interest rates, prioritizing enterprises in the fields of export, green production...

Interest rate reduction policies have significantly contributed to supporting businesses in the province to overcome difficulties and promote local economic growth.

Mr. Pham Van Binh, Director of Ngoi Sao Hy Vong Company Limited - a company specializing in producing animal feed in Pho Yen City, said: Thanks to the reduction in lending interest rates, the Company has saved on interest costs, creating conditions to expand production and improve product quality.

Similarly, Ms. Vu Thi Hoan, Director of Khanh Vinh Company Limited - specializing in trading food technology products in Thai Nguyen City, shared: The fact that banks have reduced deposit interest rates has created conditions for lending interest rates to decrease accordingly, helping our businesses easily access capital sources at lower costs, supporting the expansion of product consumption markets...

Reducing interest rates is considered an important "lever" to support businesses to overcome difficulties and develop production and business. In the photo: Manufacturing hand tools at Song Cong Sourcing Joint Stock Company.

Policy issuance and implementation are still stuck

Although interest rates have decreased, accessing loans is still a difficult problem for many businesses in the province, especially small and medium enterprises - the force that plays the role of "backbone" of the local economy.

Mr. Bui The Thang, Director of Thang Thao Plastic Company Limited (Song Cong City), shared: Our company mainly accepts processing for large factories in industrial parks. We want to borrow capital to expand the factory and invest in more machinery, but the bank requires a business plan and financial report that is too strict. The nature of small businesses, with capital revolving through processing contracts, makes it difficult to meet all the criteria.

Mr. Pham Van Quang, Vice Chairman of the Provincial Business Association, Chairman of the Thai Nguyen City Business Association, said: The biggest obstacle when borrowing capital is that businesses lack collateral, while banks are too cautious because of concerns about bad debt. Most businesses are already weak, so accessing preferential loans is very difficult. About 65-70% of small and medium enterprises in the area are having difficulty accessing credit capital even though interest rates have decreased.

Not only are they stuck with mortgaged assets, many businesses also say that completing loan applications is currently very difficult due to the lack of professional accounting staff and the inability to prepare standard financial reports. In addition, reforming administrative procedures and applying digital technology in loan application review are also solutions that many businesses expect to shorten the time to access capital.

Representatives of several banks (such as Vietinbank, Agribank, Techcombank, Vietcombank...) all affirmed that the Bank really wants to promote lending to the production sector, but the biggest problem is still ensuring capital safety.

According to the report of the State Bank of Region 5, by the end of February 2025, the total outstanding loans in Thai Nguyen province reached over 123,700 billion VND, an increase of 1.39% compared to the end of 2024.

Joint Stock Commercial Bank for Industry and Trade, Thai Nguyen Branch currently has many preferential loan packages for production and business enterprises.

To let capital flow to the right place

To unblock capital flows for production and business, financial experts say that reducing interest rates is a good sign but not enough. More importantly, it is necessary to loosen lending conditions so that capital can actually reach manufacturing enterprises.

Mr. Nguyen Van Cuong, Permanent Vice Chairman of the Provincial Small and Medium Enterprises Association, Chairman of the Pho Yen City Business Association, said: The reduction of interest rates by banks is a positive signal, but for enterprises to truly access capital, more synchronous solutions are needed. In particular, removing collateral, loosening lending conditions and reforming procedures are key factors.

Banks and credit institutions in the province also recognize the need to be more proactive in resolving problems for customers. Ms. Tran Thi Hoai, Director of MB Services Thai Nguyen Branch, shared: We are ready to accompany businesses. However, businesses also need to develop feasible business plans and financial transparency to create trust for banks to confidently disburse loans.

At the conference "Promoting bank credit to contribute to economic growth" recently organized by the State Bank of Region 5, Director of the State Bank of Region 5 Le Quang Huy affirmed: In the current context, all parties must share the difficulties. Banks need to be more flexible in appraisal, and enterprises must also proactively restructure and improve their management capacity to meet credit requirements.

There are currently more than 10,000 enterprises operating in Thai Nguyen province. As an industrial and high-tech manufacturing center, the locality is in dire need of abundant and smooth capital flow to support enterprises to recover and make breakthroughs. To achieve the double-digit growth target in 2025, Thai Nguyen must "untie the knot" of capital, unblock the flow of credit - the "blood" that nourishes the local economy...

Source: https://baothainguyen.vn/kinh-te/202503/khoi-thong-dong-von-cho-san-xuat-kinh-doanh-8e202b2/