Around 80 percent of enterprises in HCM City need capaital to expand their business and production, but have difficulty accessing bank loans, according to the HCM City’s Union of Business Associations and Export Processing and Industrial Zone Authority.
Many enterprises can’t take out mortgages on their machines, shops or land to get loans from banks.
Other companies that qualify receive small loans because the banks have assessed their property or equipment at a low value.
The annual interest rate is 18 percent on bank loans, while company profit is around 7-10 percent.
“With the current banking interest rate, local enterprises will lose their competitiveness and will not be able to develop,” said Nguyen Phuoc Hung, general secretary of HCM City ’s Union Business Association.
He suggested that the Government adjust banking interest rate to under 12 percent for medium – and long-term loans.
High interest rates have also reduced competitiveness of agricultural and maritime products as the price for products has fallen, while costs for raw materials and other expenditure have increased.
Representatives of export companies said that Vietnam lacks a preferential credit policy for export products, and they have also need a foreign exchange fund that services import demand.
To remedy the problem, Nguyen Chi Nguyen, vice chairman of the municipal Food Association, said that small-and medium-sized enterprises might ask for help from the Credit Guarantee Fund.
“At present, capital and expenditures are the two biggest challenges for the city’s enterprises,” Nguyen Thi Hong, vice chairwoman of the city People’s Committee, said.
“Leaders of the city will continue to meet with the business community to understand the situation and provide detailed solutions.”/.
Many enterprises can’t take out mortgages on their machines, shops or land to get loans from banks.
Other companies that qualify receive small loans because the banks have assessed their property or equipment at a low value.
The annual interest rate is 18 percent on bank loans, while company profit is around 7-10 percent.
“With the current banking interest rate, local enterprises will lose their competitiveness and will not be able to develop,” said Nguyen Phuoc Hung, general secretary of HCM City ’s Union Business Association.
He suggested that the Government adjust banking interest rate to under 12 percent for medium – and long-term loans.
High interest rates have also reduced competitiveness of agricultural and maritime products as the price for products has fallen, while costs for raw materials and other expenditure have increased.
Representatives of export companies said that Vietnam lacks a preferential credit policy for export products, and they have also need a foreign exchange fund that services import demand.
To remedy the problem, Nguyen Chi Nguyen, vice chairman of the municipal Food Association, said that small-and medium-sized enterprises might ask for help from the Credit Guarantee Fund.
“At present, capital and expenditures are the two biggest challenges for the city’s enterprises,” Nguyen Thi Hong, vice chairwoman of the city People’s Committee, said.
“Leaders of the city will continue to meet with the business community to understand the situation and provide detailed solutions.”/.
