HCM City’s banking system prioritises supporting businesses

Commercial banks in Ho Chi Minh City will focus on taking measures to provide small- and medium-sized enterprises and businesses operating in the supporting industry with low-interest loans.

The banks will collaborate closely with the city’s authorities to promote business support activities. They will also encourage capital flow into production activities by boosting demand stimulus programmes, and promoting linkages between banks and businesses. 

The State Bank of Vietnam’s Ho Chi Minh City branch will continue its efforts to restructure the banking system and improve state management of currency and credit in the locality, said branch director To Duy Lam. 

The branch will also focus on dealing with bad debt and improving the non-cash payment system, he added. 

This year, the central bank’s branch set a goal of achieving credit growth of 16%-18% and capital mobilisation growth of 17%-19%. The branch also aims to cut bad debt to below 3%.

In 2015, capital mobilisation in the city reached over VND1.566 trillion (nearly US$68 billion), up 16.6% year-on-year. 

By November 2015, bad debts in the city accounted for 4% of the total outstanding loans, a decrease of 15.6% compared with the previous year, or equivalent to VND8.8 trillion (US$38 million).