Banks and businesses in Quang Nam connect for mutual development

Connecting banks and businesses in the province will unleash capital into the economy . Photo: Q.VIET

Accompanying businesses

Mr. Nguyen Van Trung - representative of Vinaconex Quang Nam said that the construction and real estate industries are facing many difficulties. Some enterprises in these two industries have difficulty repaying debts on time when borrowing capital from credit institutions. Commercial banks are stricter on lending conditions, especially lending with high interest rates, making it difficult for other enterprises to access.

According to Mr. Trung, the real estate sector usually has three tasks: site clearance, budget payment and construction investment. It is very difficult for businesses to access capital from many banks when credit institutions require a red book to lend.

With the above difficulties, the conference connecting banks and businesses is very practical because it is an opportunity for both sides to sit together and find ways to unblock credit for production and business, restore and develop the economy. "The banking industry needs to organize many seminars and conferences on each lending field, to have in-depth opinions, close to reality" - Mr. Trung said.

Mr. Phan Ngoc Minh - Chairman of Quang Nam Young Entrepreneurs Club asked: Which industries and businesses can access preferential interest rates and low interest rates? Will businesses still receive preferential interest rates after the first year of borrowing and after the second year? Regarding this issue, the State Bank and commercial banks need to inform and clearly announce so that the business community knows and can find ways to approach investment in production and business.

According to Mr. Minh, enterprises accessing loans do not only have to sign credit contracts but also have to pay many types of fees and insurance. Banks need to overcome this to facilitate and accompany enterprises. The situation of banks having excess money while enterprises lack capital still occurs in the province.

“Credit institutions should reduce procedures, document constraints, and regulations on the feasibility of production and business plans to help businesses access and absorb capital into the economy. Businesses with momentum or initial economic recovery need to be supported by banks and given new loans to expand production scale, markets, and operate strongly again,” said Mr. Minh.

In 2024, commercial banks in the province organized 88 dialogue conferences with businesses, attracting the participation of 739 customers. To date, outstanding loans through this activity have reached VND 8,598 billion (accounting for 7.87% of total outstanding loans).

Connections need to be more efficient

In the province, there are currently 2,424 enterprises with credit relationships with commercial banks; outstanding debt is 42,222 billion VND (accounting for 38.68% of total outstanding loans, down 5.35% compared to the beginning of the year). Bad debt for loans to enterprises is 1,184 billion VND (accounting for 2.8% of total outstanding loans to enterprises, accounting for 52.59% of bad debt in the area, up 47.08% compared to the beginning of the year).

BIDV Quang Nam expands its scope, increasing its ability to provide capital to businesses in Tien Phuoc district. Photo: Q.VIET

Among enterprises having credit relations with commercial banks in the area, small and medium enterprises have outstanding loans of VND 12,207 billion (accounting for 28.91% of total outstanding loans to enterprises, down 15.18% compared to the beginning of the year).

This is the type of enterprise that generates high bad debt; by the end of October, it was 507 billion VND (accounting for 42.82% of the total bad debt of the enterprise sector, an increase of 50.89% compared to the beginning of the year). In fact, the credit relationship between banks and enterprises in the province is that the outstanding debt and the number of customers with outstanding debt are decreasing, and bad debt is increasing.

According to the State Bank of Vietnam, Quang Nam branch, there are many reasons, such as although enterprises have gradually recovered production and business, they are still not able to pay off all restructured debts and due debts.

Small and medium enterprises have limited capital, lack of collateral, and business plans that do not meet the requirements of commercial banks, which affects the credit consideration of credit institutions.

Mr. Pham Trong - Director of the State Bank of Vietnam, Quang Nam branch, assessed that the interest rate level in the province has decreased significantly. Commercial banks have made efforts to prepare capital sources and preferential credit packages, meeting the borrowing needs of enterprises with feasible production and business plans, especially small and medium enterprises and enterprises in priority sectors.

However, many businesses still have difficulty accessing capital because they do not meet the criteria set by banks, have bad debt or do not have enough collateral.

"Credit institutions promptly resolve difficulties of enterprises, continue to provide credit for production and business, priority areas to create momentum for economic growth. Enterprises need to seize opportunities, build effective business plans, improve management capacity to be able to access capital, and produce and do business more effectively," said Mr. Trong.

Source: https://baoquangnam.vn/ngan-hang-va-doanh-nghiep-o-quang-nam-ket-noi-cung-phat-trien-3144198.html