Accompanying import and export businesses

(Baonghean) - Reducing interest rates, increasing loan limits and reforming administrative procedures... are practical measures of the banking sector in providing timely capital support for businesses operating in the import-export sector. Such companionship and sharing have helped many import-export businesses stabilize production and business and develop in the current difficult conditions.

Although import-export activities have encountered many difficulties in recent times due to the global economic recession, the traditional export markets of many enterprises have been narrowed... but the banking sector has always accompanied enterprises. Up to now, the total outstanding loan balance for import-export is equivalent to 1,725 ​​billion VND (of which export is 1,026 billion VND). Some banks have "strongly" invested in enterprises operating import-export activities such as Vinh Joint Stock Commercial Bank for Foreign Trade, Nghe An Branch of the Bank for Industry and Trade and Ben Thuy Branch of the Bank for Industry and Trade...

Ms. Le Thi Hue Anh - Director of Vinh Joint Stock Commercial Bank for Foreign Trade (Vietcombank Vinh) said: “Through preferential policies on interest rates, fees, and overall service quality, Vietcombank Vinh not only attracts many new customers but also expands credit relations with existing customers. With the advantage of being the number one bank in the field of payment and import-export lending, Vietcombank Vinh has mobilized abundant foreign currency resources to promptly meet customers' demand for foreign currency (USD) loans. For customers who are export enterprises with foreign currency revenue, Vietcombank Vinh only applies an interest rate of 3 - 4.5%/year. In addition to the competitive interest rate policy, Vietcombank Vinh also proactively applies preferential price and fee policies to provide maximum support to businesses”. Currently, the exchange rate tends to be stable, borrowing foreign currency with low interest rates has greatly supported the development of businesses. Therefore, Vietcombank Vinh has created conditions for import-export enterprises to borrow capital with a total amount equivalent to more than 301 billion VND.

Thanks to timely loans, Sy Thang private enterprise in Dien Chau has been able to purchase agricultural products for export.

Nghe An Industrial and Commercial Bank Branch is also an active unit investing in import-export loans, the current outstanding debt of this sector is equivalent to 300 billion VND. The leader of Nghe An Industrial and Commercial Bank Branch said: "To support businesses borrowing for import-export business, the bank offers preferential interest rates that can compete in the market, while reducing service fees and increasing loan limits. In addition, it also organizes customer conferences to discuss import-export lending activities and propose solutions to best support customers. Currently, the bank provides full support services for businesses such as: Domestic and international money transfers; Promoting trade finance activities: Issuing and paying import letters of credit; notification, confirmation; Collection of export and import bills (Collection); Collection of bills of exchange at sight (D/P) and collection of bills of exchange acceptance (D/A)...". Those practical actions have attracted many import-export enterprises, such as: Thanh Thanh Dat Company Limited borrowed capital equivalent to nearly 184 billion VND, Nghe An Paper Materials Company Limited nearly 52 billion VND, Song Thang private enterprise nearly 15.3 billion VND...

Superfine stone powder products of Nghe An enterprises exported through Cua Lo Port.

Mr. Nguyen Duy Ky - General Director of Nghe An CONTAINER JSC said: “In addition to investing in container freight transport, we also strongly invest in developing the export pine oil processing sector. During the pine resin purchasing season, the company needs a large amount of money to purchase raw materials from Nghe An to Da Lat, and the enterprise always receives an increased loan limit from Vietcombak Vinh with an interest rate of only 3.5%/year (USD loan), promptly meeting the capital source for production and business, thanks to that, since the beginning of 2013, we have processed more than 3,000 tons of pine resin for export to the European, Japanese, Korean markets... The company is striving to achieve an export turnover of 7 million USD in 2013”.

ChoaViet Joint Stock Company (Nguyen Canh Hoan Street - Vinh City), specializes in growing and processing agricultural products for export. Previously, the enterprise had great difficulty in capital for import and export, but Vietcombank Vinh still boldly lent the enterprise capital equivalent to 10 billion VND. From that basis, the enterprise has promoted the efficiency of investment capital and now the bank has increased the loan limit up to 30 billion VND with the loan interest rate currently only from 3 - 3.5% / year (USD loan). With the support of the bank, ChoaViet Joint Stock Company has gradually overcome difficulties to achieve effective production and business. From the beginning of 2013 to now, it has exported more than 150 tons of pineapple concentrate (IQF), 450 tons of passion fruit concentrate and 100 tons of gac fruit (PUURE), at the same time investing in expanding the raw material area in the mountainous districts of Nghe An. In 2013, the company strives to achieve an export turnover of 6.8 million USD. Vietcombank Vinh's expansion of investment in the import-export sector has also actively supported many enterprises, such as Nghe An Tea Development Investment One Member Co., Ltd. (export turnover in 2013 estimated at about 5 million USD), Nghe An Joint Venture Company for Growing and Processing Export Paper Materials (export turnover in 2013 estimated at about 10 million USD), Thanh Hoa Co., Ltd., Cat Phu Co., Ltd....

Recently, Nghe An Agricultural Bank Branch has also started to support capital investment in this field. Since its implementation (May 2013) up to now, many enterprises have been able to borrow capital for import-export investment with outstanding loans of more than 48.3 billion VND, of which the Forestry Products Processing Joint Stock Company borrowed 15 billion VND to serve wood processing and export; Sy Thang Private Enterprise in Dien Chau borrowed 8 billion VND to purchase agricultural products for export...

With the banking sector actively participating in supporting investment in the import-export sector, it has shown quite a vibrant development of import-export enterprises in our province.

However, a sad reality today is that some commercial banks with branches in Nghe An have had to "withdraw" from the field of supporting investment in import-export development, because it is difficult to mobilize foreign currency capital, have not reduced lending interest rates and especially cannot take the initiative in the loan limit (because when customers borrow large amounts of money, the branches must report and wait for the decision of the Head Office)... Previously, the Export-Import Bank of Vietnam - Nghe An Branch (Eximbank) was also one of the credit institutions with a fairly high debt balance in the field of import-export investment, but up to now that function has not been effective and is having to "struggle" with focusing on debt collection, not paying attention to customer development... Or the International Bank - Nghe An Branch (VIB) is the same, the balance in this field is not high...

In the past, the cooperation and sharing of the banking sector with import-export enterprises has brought high efficiency. In the coming time, import-export activities will not be free of difficulties. Enterprises really hope that banks will increase the loan limit with more reasonable interest rates to create favorable conditions to support business development.

Hoang Vinh