$13.4 billion lent through annual HCM City bank-business connection programme

$13.4 billion lent through annual HCM City bank-business connection programme

Nearly VNĐ350 trillion (US$13.38 billion) was disbursed through the HCM City’s annual bank–business linkage programme in the first half of this year, a 6.35 per cent increase, according to the State Bank of Vietnam.

A bank in HCM City. Nearly VNĐ350 trillion (US$13.38 billion) was disbursed through the bank–business connection programme in HCM City in the first half of this year. — Photo courtesy of Sacombank

Nearly VNĐ350 trillion (US$13.38 billion) was disbursed through HCM City’s annual bank–business linkage programme in the first half of this year, a 6.35 per cent increase, according to the State Bank of Vietnam. 

Nguyễn Đức Lệnh, deputy director of the SBV’s region 2 branch, said with its low interest rates and credit limits tailored to business needs, the programme has proven to be effective. 

“This credit package has effectively met the capital needs of enterprises, household businesses and cooperatives, thereby contributing to the city’s economic growth.”

It represents a concrete effort to bring the SBV’s monetary and credit policies into practical effect, he said.

This year, the programme attracted the participation of 18 banks and financial institutions, who committed over VNĐ517 trillion ($19.78 billion). They included major domestic names such as Vietcombank, VietinBank, BIDV, Agribank, ACB, Sacombank, Techcombank, and HDBank, and foreign lenders such as Toyota Finance and Shinhanbank. 

So far, some 76,600 customers have received VNĐ342 trillion in loans. 

The credit is meant for five priority sectors: exports, agriculture and rural development, small and medium enterprises, supporting industries, and high-tech enterprises. 

Short-term loans in the đồng are offered at interest rates not exceeding 4 per cent. 

In addition to financial support, the programme also facilitates policy dialogues, public communication and thematic credit programmes to help businesses access funding.

Central bank’s new administrative model

From July 1, the SBV's regional branch system will operate under a new model following the merger of a number of provinces and cities around the country to streamline operations and enhance efficiency. 

SBV Region 2 will oversee new HCM City (HCM City and Bà Rịa–Vũng Tàu and Bình Dương provinces) and Đồng Nai (Đồng Nai and Bình Phước provinces), with its headquarters in HCM City.

The restructuring ensures practical alignment with administrative reforms and facilitates more effective implementation of monetary policy, Lệnhsaid.

“The bank–business connection programme in HCM City serves as both a valuable case study and a renewed implementation method under the new management structure.”

Following the organisational changes, the programme will continue to coordinate with local departments, business associations and professional organisations.

Banks will take the lead in implementing the programme to benefit  sectorssuch as wood processing, aquaculture, exports, supporting industries, industrial parks and export processing zones, green credit, and innovation.

This approach ensures consistency with the two-tier administrative model while enhancing the effectiveness of credit programmes and preferential loan packages, helping businesses access capital proactively and in alignment with development goals, headded. 

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