On 9th January, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) announced the decision to reduce dong lending interest rates for corporate customers.
Accordingly, this is the first commercial bank to reduce lending interest rates, following the message given at the conference about the 2019 tasks of the banking industry took placed on 9th January morning.
Vietcombank’s announcement said that in response to the government’s policy stated in Resolution No. 01/NQ-CP dated 1st January, 2019 and the orientation of the State Bank of Vietnam (SBV), in which credit growth is coupled with restructuring and improving credit quality, concentrating credit on production sectors, especially in priority sectors, Vietcombank has just announced a sharp reduction in interest rates to support businesses with dong borrowing.
Businesses that are entitled to reduced interest rates in priority sectors are regulated by SBV, including high-tech agricultural applications and start-up businesses in 2019.
Specifically, Vietcombank applies short-term lending interest rates in dong at a maximum rate of six percent per annum (p.a.), equivalent to 0.5 percent reduction compared to the ceiling regulated by SBV, applied to all existing and new loans arising in 2019.
At the same time, Vietcombank reduce 0.5 percent p.a. in 2019 for medium and long-term loans of the existing loans in dong of the businesses.
The above preferential interest rate policy applies to seven areas.
First is agricultural and rural development sector following the government’s regulations on credit policies for agricultural and rural development.
Second is the sector of export businesses in accordance with the Commercial Law and documents guiding the Commercial Law.
Third is the sector to serve the business of small and medium businesses according to the government’s regulations on small and medium-sized businesses.
Fourth is the sector to develop supporting industry in accordance with the government’s regulations on supporting industry development.
Fifth is the sector to serve business of high-tech businesses in accordance with the High-tech Law and documents guiding high-tech law.
Sixth if the agricultural sector applied high technology.
Seventh is lending to start-ups.
This interest rate reduction is applied by Vietcombank on a large scale, for both short-term loans and medium and long-term loans in dong, currently accounts for about 30 percent of the total loans outstanding in dong of the ban.
In recent years, on the basis of synchronous implementation of solutions to reduce operating costs, improve business efficiency, enhance risk management, Vietcombank has been making efforts to take the lead in implementing the measures to support, share and solve difficulties with businesses.
“Vietcombank believes that these will be practical actions, demonstrating Vietcombank’s strong commitment to proactively carry out the government’s management policies and strive for the common goal of economic development,” announcement of Vietcombank stated.
