At the Standing Government Conference working with joint-stock commercial banks on solutions to contribute to the country’s socio-economic development, held on the afternoon of September 21, 2024, the Chairman of the Board of Directors of Vietnam Technological and Commercial Joint Stock Bank (Techcombank), Ho Hung Anh, said that since the beginning of 2024, the Government and the State Bank have provided numerous directives and orientations for the banking sector, such as Directive No. 14/CT-TTg, Directive No. 29/CT-TTg, and Directive No. 01/CT-NHNN. Techcombank has always actively adhered to these guidelines to support businesses and people in accessing credit capital.
Chairman of Techcombank, Ho Hung Anh, speaks at the conference – Photo: VGP/Nhat Bac |
Deploying Various Credit Solutions
Specifically, according to Chairman Ho Hung Anh, Techcombank has continuously improved, upgraded, and launched new credit products that cater to the needs of businesses in different sectors. This approach ensures that the bank offers the most suitable solutions to its clients and effectively addresses challenges arising from the specific nature of their business operations.
Techcombank has focused on developing credit for the SMEs segment with the motto of making credit accessible through specific programs and campaigns. These include a quick credit program of up to VND 5 billion without collateral for non-credit existing customers with transaction accounts at FEB and a similar program for customers acquired through partner channels.
The loan application process on MISA Lending takes just 2 minutes and is entirely digitized. Businesses receive loan approval within one day, and collateral is not required. For these programs, Techcombank has provided credit to over 1,000 customers in Hanoi.
Additionally, the bank offers a partial or full unsecured loan program through a post-disbursement loan management policy that relies on post-disbursement control measures instead of collateral.
Techcombank has implemented a series of programs to connect businesses operating in the same field, helping them expand their network of partners. For example, the bank has facilitated connections with the Wood Association, the Logistics Association, and other programs to develop chain-based credit relationships with consistent credit policies.
Furthermore, in line with Circular No. 02/TT-NHNN dated April 23, 2023, and Circular No. 06/2024/TT-NHNN, which extended the previous circular by another six months, Techcombank has implemented a broad policy of reducing fees and interest rates. As of August 31, 2024, the bank has restructured repayment terms for a cumulative total of VND 6,206 billion in principal debt and VND 154 billion in interest debt.
Techcombank has also launched campaigns to develop solutions that simplify and shorten loan procedures, making it easier for customers to access loans. The bank has also embraced digitization to enhance customers’ experience, as exemplified by the online disbursement and guarantee issuance program.
Chairman Ho Hung Anh mentioned a credit program for investors and buyers in social housing, workers’ housing, and old apartment reconstruction projects, with a registered disbursement volume of VND 5,000 billion.
Regarding deposit and lending interest rates, Techcombank has followed the Government’s and SBV’s directives on implementing the interest rate support program. As a result, the bank’s lending rates have been on a downward trend since the end of 2022.
As of August 2024, Techcombank’s average lending rate was 7.73%, continuing the downward trend from March 2024 and representing a 2.24% decrease compared to December 2023. Notably, between December 31, 2023, and August 31, 2024, the average lending rate for individual customers in the production and business sector—one of the sectors with the highest reduction—decreased by 2.48%, from 10.11% to 7.63%.
Seeking Solutions to Stabilize and Unblock Capital Flows in the Market
At the conference, Mr. Ho Hung Anh, representing Techcombank, put forward three proposals to unblock capital flows in the market during the last four months of 2024.
Firstly, there is a need for solutions to stabilize and unblock capital flows in the corporate bond market. The draft Securities Law contains significant changes that will significantly impact the securities market, the capital market, and enterprises’ capital mobilization efforts. Therefore, the Ministry of Finance should assess the potential impact on the market and businesses and listen to the voices of enterprises and associations to make appropriate adjustments. These adjustments should ensure market stability and facilitate sustainable capital mobilization for enterprises.
Secondly, regarding measures to enhance the capacity and sales capabilities of production and business enterprises, Mr. Ho Hung Anh acknowledged the difficulties faced by Techcombank and other Vietnamese banks in supporting production and business enterprises due to the challenging economic situation, exacerbated by natural disasters, epidemics, and global economic and political instability. To address this, he proposed the introduction of additional low-interest loan packages, especially for small and medium-sized enterprises and those facing difficulties in exports or affected by natural disasters and epidemics. He also suggested stabilizing the foreign exchange market and extending policies to reduce corporate income tax, value-added tax (VAT), and payment deadlines, while controlling production and business-related costs such as transportation and import-export expenses to ease the financial burden on businesses.
