Mr Giau made his commitment at a meeting with HCM City authorities and representatives of the Ministry of Finance (MoF) and the Ministry of Industry and Trade (MoIT), and businesses aimed at smoothing the way for business operations.  

Many businesses have claimed that the lending interest rates are so high they are not able to take out bank loans for production.

Mr Giau revealed that several big commercial banks such as Agribank, Vietcombank, BIDV, ACB and Eximbank will apply negotiable rates of between 14-15 percent at maximum to be acceptable to businesses.

Many banks will also offer export businesses rates ranging from 12 to 13.5 percent, he said, adding that banks will give priority to pouring capital into sectors that generate more jobs and boost exports.

Mr Giau said that the central bank is implementing a Government resolution aimed at stabilising the macro economy, reining in runaway inflation and achieving a 6.5 percent GDP growth rate this year.

To this end, he said, his bank is applying a proactive and flexible monetary policy to raise credit growth to 25 percent this year to meet the requirements for national development. The exchange rate will be adjusted flexibly to increase exports and limit imports, he said.

The governor proposed that HCM City encourage its businesses to either join the stock exchange or issue bonds to publicise their operations, mobilise idle capital from the public, and reduce pressure on commercial banks.

The banking sector will stand shoulder to shoulder with businesses to help them iron out their snags, said Mr Giau.

HCM City Vice Mayor Nguyen Thi Hong proposed that the State Bank of Vietnam continue to apply negotiable interest rates for short-term loans and abolish the deposit ceiling rates.

The central bank should use tools to control the galloping interest rates offered by a number of commercial banks, while reducing the reserve rates and injecting capital into commercial banks, she said. 

She asked the bank to limit loans to high-risk areas to mobilise capital for production and export. She also suggested that the MoF and MoIT adjust policies and mechanisms to help businesses stabilise production.

A representative from the Saigon Trading Group said the bank should offer export businesses fixed rates for 1-2 years. A representative of Ben Thanh Corporation said bank rates have reached a peak, causing difficulties for production businesses. Some proposed that the central bank keep the exchange rates in check to support import-export activities. 

MoF Deputy Minister Do Hoang Anh Tuan highlighted the government’s tax reduction and exemption policy last year, which has benefited businesses and supported their operations. He said the financial sector is accelerating administrative reform to cut down on unnecessary procedures.   

MoIT Deputy Minister Nguyen Nam Hai spoke of his ministry’s efforts to strengthen market management and crack down on the smuggling and circulation of contraband goods.