Banks promise $190 million to Binh Dinh businesses

Friday, Jun 13, 2014 15:32

Workers produce timber products at a firm in central Binh Dinh Province. Banks have assured over $190 million in finances for local businesses. — Photo

BINH DINH (Biz Hub) ─ Sixteen banks assured over VND4 trillion, or US$190.48 million in finances for nearly 100 enterprises in central Binh Định Province, on Thursday.

They signed the credit agreements at a meeting held by the provincial People's Committee, which aimed to foster business relations between banks and enterprises, as present conditions with regard to production and business activities remained tough.

Typically, the Bank of Investment and Development of Viet Nam will fund a firm with VND550 billion, or $26.19 million, and Vietcombank will reserve VND415 billion, or $19.76 million, for three enterprises.

The Bank for Agriculture and Rural Development will support six firms with VND255 billion, or $12.14 million.

Phan Phu Hai, the director of the State Bank of Viet Nam's Binh Dinh branch, said the assistance would help local companies upgrade technology, enhance value-added products, and improve competitiveness in export markets.

Binh Định Wood Association chairman Do Xuan Lap said the banks' support was meaningful as the timber product industry had seen signs of recovery. But significant hindrances remained for enterprises seeking loans, as many firms lacked mortgages for credit, he noted.

According to People's Committee chairman Le Huu Loc, the export value of the province reached about $320 million in the first half of this year, representing 47 per cent of the annual target and up 3.6 per cent over the same period last year.

Of the major items of exports, fine processed wood products reached $105.7 million, up 10.7 per cent; seafood reached over $31 million, growing 22 per cent; and garments reached 31.7 million, rising by 108.7 per cent. ─ VNS

Comments (0)