Banks entice local, foreign firms

Since banks are awash in liquidity, they are offering loans at 9-10% to companies and household businesses, with some even going lower.

HDBank said it has earmarked VND500 billion (US$23.7 million) for lending to foreign firms from now through September.

The companies can get medium-term loans to modify or build plants and buy equipment and materials but are not required to produce collateral.

Those affected in the recent riots will get priority.

An official at the State Bank of Vietnam's HCM City branch said five foreign enterprises affected by riots in the city have outstanding bank loans, and the lenders are considering ways to support them, including reducing interest rates.

The central bank has instructed banks to continue stepping up credit and other activities at export processing zones and industrial parks, he said.

Last week 10 banks in HCM City signed a credit contract worth VND718 billion (US$34.03 million) with 34 companies in District 10 at 7% interest rate.

They are Sacombank, VietinBank, Agribank, Vietcombank, DongABank, ABBank, HDBank, MHB, SCB, and VID Public Bank.

Besides this, the banks also have their own programmes to lend to companies in various fields.

SeABank is offering VND loans at 6.5% and dollar loans at 4% to import-export companies under a credit programme worth VND300 billion and US$20 million.

Besides, borrowers under this programme will enjoy a 20% reduction in fees for international payments and free foreign fund transfers.

The bank is also lending to small and medium-sized enterprises and household businesses at 8.5% through a VND4 trillion preferential credit programme.

The programme will go on until December 31.

Agribank has earmarked VND10 trillion for lending at 6-8% to enterprises involved in exports and imports of agricultural products, food, and items used for agricultural production.