Six banks — Sacombank, Vietcombank, VietinBank, Agribank, VIB Bank, and Indovina — lent VND917.6 billion (US$43 million) at 7 per cent for short-term loans and 10 per cent for medium- and long-term loans.— Photo cafef

HCM City (Biz Hub) — Twenty three companies situated in HCM City processing zones and industrial parks yesterday got bank loans on easy terms under a programme initiated two years ago by the central bank and the Government.

Six banks — Sacombank, Vietcombank, VietinBank, Agribank, VIB Bank, and Indovina — lent VND917.6 billion (US$43 million) at 7 per cent for short-term loans and 10 per cent for medium- and long-term loans.

"For the past two years the banking – enterprises linkage programme has been implemented to ease the funding and interest difficulties faced by companies in HCM City," Nguyen Hoang Minh, deputy director of the State Bank of Viet Nam in HCM City, said at the ceremony held to sign the credit contracts.

"But this is the first time the programme has come directly to enterprises in processing zones and industrial parks."

Last year around VND13.7 trillion ($650 million) was lent under it. This year another VND11.9 trillion ($580 million) was lent to 506 companies, 29 household businesses, and five co-operatives.

Through the rest of this year the SBV plans to promote the programme in all 24 city districts and throughout the country.

Despite the fact that the sum of money and number of companies eligible for the soft loans are limited the programme has managed to achieve impressive results: it has directly contributed to reducing difficulties faced by businesses, propagated information about the support provided by the Government and banking system to companies, and sensitised banks to businesses' needs.

"Processing zones and industrial parks are a very promising and stable market for banks with 1,300 companies and 273,000 workers," Nguyen Tan Phuoc, deputy head of the HCM City Export Processing Zones and Industrial Parks Authority, said.

"I hope banks provide more support to enterprises in processing zones and industrial parks."

Banks have so far lent VND75 trillion ($3.6 billion) to companies in the city's zones and parks, while foreign banks have lent another $600 million to foreign companies there. — VNS