The capital city of Hanoi will support cost-investment interestrates for medium and long term loans (from one year and longer) inVietnamese dong for enterprises headquartered in the city.
The city will pay 0.2 percent of the interest on loans (equal to 2.4 percent per year) for a 12 month period.
The loans should be invested in new projects, expanding existing projects and technological innovation.
Eligible enterprises must operate in the fields of manufacturing keyindustrial products, farming, processing farm products and foodstuffs orproducing alternative products for imported goods with sales of atleast 100 billion VND in 2012 and have over 200 employees.
Despite strenuous efforts by the State Bank of Vietnam (SBV) to adjustloan interest rates, they are still too high for most businesses.
Short-term loans with an annual interest rate of 11 percent are givenonly to businesses operating in five prioritised fields, while all othercompanies pay interest of 12-15 percent. Interest rates for individualslooking to buy houses or cars hover around 15 percent.
Expertssaid that high interest rates increased production costs and rendereddomestic products less competitive than their foreign rivals.
President of the Small-and Medium-Sized Enterprises Association Cao SiKiem said that domestic businesses were unable to pay high interestrates on bank loans.
This was why products imported from Thailand and China were often cheaper than domestic products, he stressed.
Kiem insisted that interest rates should be lowered to help businessesaccess more capital and stand firm on their home turf.
TheGovernment recently asked the SBV to reduce credit rates, accelerate themonitoring of commercial banks, simplify borrowing procedures, givepriority to the agricultural and rural sector, stabilise exchange ratesand control the value of the Vietnamese dong more strictly.-VNA
The city will pay 0.2 percent of the interest on loans (equal to 2.4 percent per year) for a 12 month period.
The loans should be invested in new projects, expanding existing projects and technological innovation.
Eligible enterprises must operate in the fields of manufacturing keyindustrial products, farming, processing farm products and foodstuffs orproducing alternative products for imported goods with sales of atleast 100 billion VND in 2012 and have over 200 employees.
Despite strenuous efforts by the State Bank of Vietnam (SBV) to adjustloan interest rates, they are still too high for most businesses.
Short-term loans with an annual interest rate of 11 percent are givenonly to businesses operating in five prioritised fields, while all othercompanies pay interest of 12-15 percent. Interest rates for individualslooking to buy houses or cars hover around 15 percent.
Expertssaid that high interest rates increased production costs and rendereddomestic products less competitive than their foreign rivals.
President of the Small-and Medium-Sized Enterprises Association Cao SiKiem said that domestic businesses were unable to pay high interestrates on bank loans.
This was why products imported from Thailand and China were often cheaper than domestic products, he stressed.
Kiem insisted that interest rates should be lowered to help businessesaccess more capital and stand firm on their home turf.
TheGovernment recently asked the SBV to reduce credit rates, accelerate themonitoring of commercial banks, simplify borrowing procedures, givepriority to the agricultural and rural sector, stabilise exchange ratesand control the value of the Vietnamese dong more strictly.-VNA
