Agricultural development bank

The State Bank of Vietnam (SBV) will promote credit programmes to support agricultural production. (Photo: VNA) Hanoi (VNA) – The State Bank of Vietnam (SBV) will launch more effective credit programmes to support agricultural production and improve local livelihoods, making contributions to boosting economic growth while wiping out black credit in rural areas. SBV Deputy Governor Dao Minh Tu said high-tech agricultural development programmes as well as agricultural production in value chain to increase added value will be prioritised as part of the agricultural shake-up project. “The SBV sees agriculture and rural areas as top priority in its credit programme. It has directed credit institutions to improve procedures for loan access and paid due attention to branching out mobile banking model in remote areas, creating favourable conditions for local people to have better access to capital and other banking services,” Tu said. Currently, 70 commercial banks, … [Read more...] about State Bank of Vietnam promotes credit programmes for rural areas

Experts at a recent forum on sustainable finance in Hanoi said that many factors prevented climate-smart projects from getting the investment they need. According to IFC, the private sector funding arm of the World Bank Group, the climate-smart business investment potential in Vietnam is estimated at $753 billion between 2019 and 2030. Of this, $571 billion will likely go towards meeting the country’s low carbon transportation infrastructure needs. Potential investment in renewable energy totals $59 billion, over half of it ($31 billion) in solar PV systems and another $19 billion for small hydropower projects, while new green buildings represent an almost $80 billion investment opportunity, the IFC estimates. However actual capital flow into Vietnam’s sustainable growth sector is still very limited. Data from Vietnam’s central bank (SBV) shows that by the first quarter of 2019, total outstanding "green loans" amounted to VND242 trillion ($10.42 billion), just around … [Read more...] about Vietnam urged to diversify funding sources for sustainable, green development

Illustrative image (Source: VNA) – Over the years, commercial banks have offered various promotion programmes for businesses, especially those in five prioritized sectors with the preferential interest rate of 6-6.5 percent per year. The bright spot through credit activities of the banking sector so far is the close coordination with local governments in speeding up aprogramme to connect banks and businesses across the country in line with the major tasks and development plans of each locality. Symbiotic relations According to experts, the bank-business relationship is symbiotic, as removing difficulties for enterprises also helps ease difficulties for banks. In reality, not only businesses need banks, but banks have actively approached firms and connected with them to explore the reasons behind their difficulties in production and paying debts for the banks. Thus,they work together to seek solutions to step up credit programmes and policies to improve production and businesses, … [Read more...] about Closer bank-business connections help deal with capital supply issue

  Banks usually lend against collateral, but start-ups and agricultural projects do not have enough assets to pledge, small and medium-sized enterprises hard to access bank loans. VNS Photo Văn Châu CẦN THƠ – A conference meant to link up banks with companies in the Mekong Delta was held in Cần Thơ City on August as part of efforts to ease the difficulties small and medium-sized enterprises in the region have in accessing credit. Đào Minh Tú, deputy governor of the State Bank of Việt Nam, told the conference that the delta is a dynamic economic region with strengths in agriculture, renewable energy and tourism. Nguyễn Quốc Hùng, director of the central bank’s credit department, said the 500-odd credit organisations in the delta lent some VNĐ 71.3 trillion (US$3 billion) to firms in the first half of this year, but little to those in value chains or applying advanced technologies because … [Read more...] about Central bank says small companies should be able to access bank loans

Economic growth across Southeast Asia will slow to 4.5 per cent in 2019 and remain unchanged in 2020, amidst high risks of a re-escalation in trade tensions. Regional growth has slowed since 2018 and remained sluggish in the third quarter of 2019, with GDP growth across the Southeast Asia (SEA) region rising only 4.5 per cent on-year from 4.4 per cent in the second quarter. The US-China trade conflict has been a key driver for this slowdown in growth, with trade uncertainty remaining a key drag on manufacturing, exports, and investment. Export-oriented economies have been the most impacted by the ongoing trade tensions, with Singapore only narrowly avoiding a technical recession in this year’s third quarter. Regional growth has slowed since 2018 and remained sluggish in the third quarter of 2019, with GDP growth across the SEA region rising only 4.5 per cent on-year from 4.4 per cent in the second quarter. Sian Fenner, ICAEW Economic Advisor and Oxford Economics Lead Asia … [Read more...] about Southeast Asia’s GDP growth to remain at 4.5 percent in 2020