Part I: Effectiveness of the bank connection program

Creating leverage for sustainable business development

The bank-enterprise connection program that the banking industry has implemented in recent times is truly an effective solution, solving the difficult problem of capital for enterprises. Since the program was launched, the credit-customer relationship has changed positively, with more effective mutual support. Instead of the previous story of enterprises "begging" for banks, now banks have come to enterprises themselves, working with enterprises to remove "bottlenecks" in production and business activities.

From preferential loans, Phu Tho Textile Company Limited, Thuy Van Industrial Park, Viet Tri City invests in technology, creates new products, and meets partners' requirements.

Let's untie the knot

The world economic situation has had complicated developments, especially in recent years, the impact of the COVID-19 pandemic has had a great impact on our country's economy in general, and on the production and business activities of people and enterprises in all sectors and fields in the province in particular. In that situation, implementing the direction of the Government and the Prime Minister, the banking sector has implemented solutions to improve access to and absorption of credit capital for the economy, in other words, for enterprises themselves, focusing on solutions to organize programs connecting banks and enterprises. From here, all difficulties and problems between the two sides have the opportunity to be thoroughly resolved, opening up a positive direction for enterprises as well as the banking sector.

At the conferences connecting banks and enterprises, it was shown that the organization of bilateral dialogues between banks and enterprises was really effective, helping both sides understand each other better. The recommendations and proposals of enterprises were answered by representatives of bank leaders, discussed and exchanged to find a common voice, have support solutions, help enterprises access capital sources in a convenient, practical way, suitable to the needs of enterprises as well as well resolve the conditions for borrowing capital.

Hoai Trung Tea Company Limited (Thanh Ba District) is an enterprise operating in the field of tea processing for export. Currently, the Company produces about 1,000 tons of finished tea products/year. Along with black tea products, the Company has invested in a green tea production line and has the first product in the province to achieve the 5-star OCOP National level.

Ms. Bui Thi Mao - Director of the Company said: “The impacts of the epidemic or political conflicts in the world have greatly affected the operations of enterprises. To overcome difficulties, enterprises are forced to restructure production, innovate technology, and diversify markets. The Company is accompanied by Agribank Thanh Ba district and consulted on loan packages suitable to the needs, with interest rate support, helping us save costs, creating new opportunities for more resources to invest in expansion”.

Accompanying enterprises to overcome difficult periods, stabilize and develop production, BIDV Bank system in the province currently has 2 branches and 15 transaction offices. Up to now, outstanding credit has reached over 17,500 billion VND, of which outstanding credit for corporate customers is over 7,850 billion VND, the number of corporate customers having credit relationships at BIDV is 547 customers.

Ms. Dinh Thi Mai Huong - Director of BIDV Bank, Phu Tho Branch shared: The unit identifies supporting customers in difficulty as both a business ethic, accompanying and sharing with customers, and a way to attract, retain and build a traditional customer system. Moreover, only when businesses operate effectively can the bank develop. With policies to restructure debt repayment terms and maintain debt groups; exempt and reduce fees, reduce interest rates, adjust loan limits; review and re-evaluate loan collateral, etc., it has created conditions for businesses to access capital. Therefore, many business customers have come to BIDV, creating mutual support and increasingly affirming sustainable credit relationships.

Through the connection program, hundreds of businesses in the province have access to credit capital each year. In 2023, banks held dialogues with businesses and made loan commitments of VND 5,742 billion, restructuring debts for 18 customers with outstanding loans of VND 51 billion. In the first 6 months of this year alone, through dialogues, banks committed to lending businesses VND 5,717 billion; the total accumulated new loan turnover since the beginning of the year reached VND 6,634 billion, 387 businesses still have outstanding loans of VND 5,798 billion, 76 customers have had their debt repayment terms restructured with outstanding loans of VND 755 billion.

Through the connection program, hundreds of businesses in the province have access to credit capital every year.

One solution, multiple tasks

The banking industry's connection program not only ensures timely capital sources for businesses, banks and credit institutions but also focuses on timely credit provision to priority areas under the direction of the Government and areas of local strengths, especially the following areas: Agriculture, rural areas, export production, supporting industries, high technology, small and medium enterprises, business startups... but also contributes to promoting recovery and development of production and business; closely following the target of safe and effective credit growth, good control of bad debt...

In addition to bringing benefits to both banks and enterprises, the connection program also brings greater efficiency in organizing and implementing the annual tasks of the banking industry along with monetary and credit solutions and banking activities in the area. Accordingly, through the connection program, people and enterprises know about preferential and support policies of the State and the banking industry to benefit from, banks receive information, feedback from businesses, people... contributing to bringing mechanisms and policies into practical life.

Ms. Le Thi Hong Nhung - Director of Agribank Phu Tho Branch - a pioneer in connecting with businesses, said: Organizing the program to connect banks and businesses not only ensures that businesses and people have convenient access to policies but also ensures the responsibility of implementing policies from banks. On the contrary, in this relationship, the implemented policies will contribute to ensuring the effectiveness and achieving the goals of monetary policy on maintaining macroeconomic stability, curbing inflation, and supporting economic growth.

This result is a valuable lesson in organizing the implementation of the Government's and the banking sector's policies and guidelines, and is also a supporting solution in continuing to improve the investment environment and strengthen policy trust from people and businesses. In fact, dozens of conferences connecting banks and businesses are held annually, with hundreds of businesses, cooperatives and individual households participating directly, including propagandists, coordinating focal points such as departments, branches, districts, towns and especially business associations and industries participating in the dialogue, creating a very practical and effective information and policy communication effect, highly appreciated by the business community.

Through the effective implementation of the bank-enterprise connection program, the banking industry will not only fulfill its task of promoting economic development but also contribute to ensuring social security by connecting to implement policies, remove difficulties, support businesses, and best meet the capital needs of businesses.

Mr. Pham Gia Ly - Vice Chairman of the Provincial Business Association said that the connection program has created an important "capital access" channel, promptly resolved capital issues, helped businesses access preferential loans from banks with reasonable interest rates, and at the same time demonstrated the trust of banks in the production and business activities of businesses. Businesses increasingly recognize the need for financial transparency, enhancing capacity and corporate governance as well as developing feasible production and business plans. The connection program truly creates a connection between the two sides, adding motivation for businesses to stabilize production and development. The connection program also opens up opportunities for businesses to exchange experiences, connect, and use each other's products, thereby helping thousands of businesses in the province develop stably in recent years.

The Bank-Business Connection Program has successfully completed many tasks, becoming a specific and practical solution and action to remove difficulties for businesses, improve access to credit and policies, and is a driving force to promote credit growth, contributing to the effective implementation of solutions for growth and development of the country's economy in general and the local economy in particular with good and creative ways.

Part II: Increasing symbiotic “health”

Phuong Thao - Nguyen Hue

Source: https://baophutho.vn/ky-i-hieu-qua-chuong-trinh-ket-noi-ngan-hang-doanh-nghiep-219904.htm