The Bank for Foreign Trade of Viet Nam (Vietcombank) on Wednesday committed to setting aside a preferential credit package worth VND30 trillion (US$1.3 billion) for the health sector.

The loans will help the sector improve its facilities and service quality.

The commitment was part of a comprehensive co-operation agreement inked between Vietcombank and the Ministry of Health to create favourable conditions for hospitals and health check-up establishments to use financial and banking services and contribute to the development of the health sector.

Under the agreement, Vietcombank will provide medium and long-term loans with preferential interest rates to hospitals and health establishments to buy modern health equipment and upgrade medical facilities to better serve people’s demand for health check-ups and special disease treatment.

The credit package, which will be disbursed until 2019, will also be offered for hospital expansion to help solve the patient overcrowding problem faced by health establishments nationwide.

The lending term could last for 20 years.

Vietcombank chairman Nghiem Xuan Thanh said the bank would actively support investment projects of the health sector. He pledged to simplify lending procedures and supply loans at reasonable interest rates.

By signing the agreement with the ministry, Vietcombank affirmed its corporate social responsibility toward communities through practical actions, Thanh added.

Deputy Minister of Health Pham Le Tuan hailed Vietcombank’s credit package as an important source of funds amidst the limited State budget allocation to the sector.

With the financial assistance from the bank, hospitals would be able to implement their action programmes and projects, the deputy minister said, calling for hospitals to use the loans efficiently.

The same day, several co-operation agreements were also signed between Vietcombank branches and hospitals such as Vietcombank Nam Ha Noi and Vietnam National Hospital of Pediatrics; Vietcombank Tay Ho and Friendship Hospital; and Vietcombank Sai Thanh, Vietcombank HCM City and Cho Ray Hospital.

Besides the credit package, Vietcombank will also provide financial solutions to health establishments, such as non-cash payment services, salary payment, installing ATMs and POS (point of sale) machines at cashier counters. — VNS