What did the Chairman of Sun Group say at the Conference on Overcoming Difficulties?

At the Conference, Sun Group expressed a desire for real estate enterprises to have access to lower-cost credit capital.


Mr. Dang Minh Truong, Chairman of the Board of Sun Group (Photo: Government Newspaper)

Speaking at the conference on the implementation of the monetary policy tasks for 2024 focusing on overcoming difficulties for production and business, promoting growth and macroeconomic stability held on the morning of March 14, Mr. Dang Minh Truong, Chairman of the Board of Sun Group, said that the supportive policies of the Government have been very aligned and specific.

“For us, a company operating in the fields of entertainment, leisure, tourism and resort real estate, these policies have brought certain effectiveness,” Mr. Truong shared and cited an example: Last year, Sun Group’s Ba Den Mountain tourist area in Tay Ninh welcomed 5 million visitors, and this year, it is expected to receive 7 million visitors. Up to now, the company has already served 2 million visitors by cable car thanks to the new visa regulations and other flexible policies.

Regarding the monetary policy tasks for 2024, as a resort real estate company, Sun Group has felt certain specific and positive impacts as follows:

Firstly, in addition to policy adjustments, the Government and the State Bank have implemented cohesive monetary policies to support the economy, especially by maintaining low interest rates and reducing lending rates, which has helped Sun Group borrow with significantly lower interest rates compared to last year.

Secondly, the State Bank has proactively regulated credit limits since the beginning of the year to help commercial banks and cooperating enterprises plan their operations to serve customers.

Thirdly, Circular 22/2023, which took effect from July 1, 2023, has adjusted and reduced the risk coefficient for some loans, enabling commercial banks to have more room to support social housing policies and industrial real estate projects as well as business activities of the group.

As for the exchange rate, in recent days, the State Bank has conducted 28-day term bill auctions to regulate short-term excess money in the market and cool down the exchange rate, which has also had very positive impacts on Sun Group’s business activities.

In addition, the Working Groups of the Government and the Prime Minister have visited various localities to promptly remove many specific real estate projects.

Sun Group believes that the consistent and thorough directions of the Government will continue to help the economy recover sustainably and stably.

However, in order to accelerate growth and ensure macroeconomic stability, Sun Group has made some proposals. Firstly, it proposes that the Government and the State Bank continue to maintain stable macroeconomic policies, especially stable deposit and lending interest rates.

Secondly, it calls for a stronger push for public investment, especially in infrastructure projects, creating conditions for large and reputable enterprises to participate in national key projects.

Thirdly, with the current and future policies supporting businesses in the economy, it proposes that the Government provide centralized and comprehensive guidance and explanations from the central to local levels, enterprises, and banks to quickly implement these policies into practice.

Sun Group also expresses its desire that real estate businesses have access to credit at lower costs. Specifically, at present, there is a significant difference (around 4-5%) between the interest rates of joint stock commercial banks and state-owned commercial banks. Enterprises hope to narrow this gap and, if possible, further reduce borrowing costs to facilitate their recovery.

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