Local firms’ bank credit access remains low
Local firms’ bank credit access remains low
Up to three-fouths of all enterprises in the country have failed to access bank credit, heard attendees at a conference on credit and promoting access to credit on June 18.
Speaking at the conference held by the National Credit Information Center (CIC), Le Tuan Anh, director of the CIC’s Research Development Division, said that HCMC alone has seen 44.5% of local enterprises lacking access to bank credit, the local media reported.
Even though the figure includes firms that do not need bank credit, most local firms are unable to access loans offered by credit institutions or have to borrow at high interest rates, he said.
In addition, statistics from the Vietnam Chamber of Commerce and Industry (VCCI) cited by Tran Ngoc Liem, deputy director of VCCI’s HCMC branch, show that some 70% of domestic firms have had difficulty in accessing bank loans. Banks tend to give more preferential policies to State-owned firms than small- and medium-d enterprises (SMEs).
This situation results from SMEs’ shortage of assets for mortgages and their weak financial transparency, Liem said.
Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s HCMC branch, said that even eligible firms sometimes fail to access bank loans as qualifying for a loan depends on input information, especially the CIC’s credit information.
The CIC’s information helps banks control risks in lending as a firm can open accounts in many different banks at the same time, Minh noted.
The CIC’s database stores data on some 40.6 million borrowers, including some one million firms and household businesses. The database attracted the participation of 122 credit organizations and foreign banks’ branches.
To boost credit access, the center is adopting various solutions, including enhancing the quality of products, providing more flexible services that match current trends on the financial market, diversifying channels for information provision and reducing fees for searching for and using credit information.
CIC has recently put into operation a portal for borrowers, allowing them to study, select and register for credit packages at suitable credit organizations.
Through the portal, participating credit organizations can connect with customers, thus cutting down on time and costs in searching for and selecting customers while ensuring transparency in the relationship between credit institutions and borrowers.
Financial experts pointed out that CIC’s credit information supports both sides and will help raise credit access in the coming years.
