The Conference: “ DongA Bank connects to enterprises”

The conference was jointly hosted by Mr. To Hoai Nam, Vice President-cum-General Secretary of VINASME and Mr. Tran Dao Vu, Deputy Direct of DongA Bank and Director of the Hanoi Branch. The conference also welcomed Mr. Nguyen Van Tu, Chief of Office of VINASME, Mr. Tran Van Dinh, member of the Board of directors of DongA Bank and representatives of enterprises and media agencies.
In the conference, representatives of DongA Bank introduced four programs promoting small and medium enterprises
The first program is a 1000 billion VND support package intended for enterprises working in agriculture, importing and exporting enterprises and high technology industries. This package offers a maximum lending interest rate of 8% for short- term loans (less than 6 months) and 11% for medium and long term loans.

 

The second program is a 500 billion VND support package under the Market stabilization program for 2014-2015. This support package offers the highest lending interest rate of 6% for less than 6 months loan and 7% to 8% for over- 6- months loans.
The third program is a 500 billion VND support package for enterprises working in the textiles and garments manufacturing sector and for outsourced enterprises.
The fourth program is for enterprises providing the placing of animal feeds on the market.
 
Mr. To Hoai Nam stated that the GDP of the first 6 months of 2014 had increased by 5.18% compared to the same period last year, higher than the increase of 2013. The rate of 2014 growth may be 5.8% according to the government's forecasts. However, the economic situation of the first six months the economic situation over the first 6 months still reveals problems that need practical and specific solutions.

 

Regarding the situation of small and medium enterprises in Vietnam, he commented that over the past few years, those enterprises had rapidly built up in quantity but not in quality. This is one of the main reasons enterprises experience difficulties in access to capital from banks.  He also suggested that commercial banks needed to support their customers by creating favorable conditions for businesses and have simpler and clearer lending procedures. Enterprises must enjoy public goodwill and ensure transparency concerning their operations and financial status so that banks offer them the best supporting solution.
From DongA Bank side, Mr. Tran Dao Vu said that DongA bank would, in the near future, design and build a specific support program for each sector like forestry, fishery, rubber and plastic industry or handicraft sector.
 
Mr. Nguyen Hoang Long, representative of enterprises and Director of  Huy Hoang Company Limited, said that these incentive policies of the past few years were partly effective in assisting enterprise. However, enterprises must constantly strive by themselves to improve their competitiveness and find an efficient business management to earn the trust of banks.