## Supporting Businesses: Effective Bank-Business Collaboration in Ho Chi Minh City
The bank-business connection program in Ho Chi Minh City has undergone adjustments in 2024, evolving its implementation approach to align with practical needs. This adaptation aims to enhance effectiveness and accomplish the program’s overarching goal: supporting businesses by addressing challenges, stimulating economic growth, and aligning with the direction set by the Government, the Central Bank, and the Ho Chi Minh City People’s Committee.
Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam’s Ho Chi Minh City Branch, shared positive outcomes after four months of implementing this revised strategy. Firstly, organizing the program by clusters and larger-scale conferences among adjacent districts has increased access to capital and preferential interest rates for a larger number of businesses, households, and cooperatives. It has also facilitated debt restructuring and the disbursement of preferential credit packages.
As of the first quarter of 2024, through this program, the disbursement of the business support credit package—initially registered by 17 local bank brands with a scale of VND 509,864 billion—reached VND 174,000 billion. This accounts for 34% of the package’s scale and has benefited more than 42,000 customers. Notably, a joint conference between three districts—District 3, District 10, and Tan Binh District—resulted in a total lending support of VND 7,500 billion. Businesses within this framework enjoyed reduced interest rates on existing loans, debt restructuring, preferential interest rates, and increased credit limits.
Secondly, the cluster approach, with its larger conferences, has enabled a more comprehensive grasp of monetary and credit policies, as well as information about support policies and preferential credit packages offered by credit institutions. This enhances the program’s reach and creates a positive impact.
Thirdly, this strategy elevates the efficiency of management and coordination between the State Bank of Vietnam’s Ho Chi Minh City Branch, the Department of Industry and Trade, the People’s Committees of districts and counties, and the city’s business associations. Organizing by clusters not only yields practical results but also reduces organizational costs and time while strengthening collaboration among management agencies and local authorities. This collaboration ensures a timely understanding of business challenges and facilitates coordinated problem-solving, fostering a sense of companionship and responsibility in fulfilling the mission of supporting businesses and promoting their development.
Additionally, the active participation, responsibility, and effective coordination among units have contributed to successful policy communication and implementation.
Mr. Lenh assessed that the program has been well-coordinated, achieving its objective of supporting and resolving difficulties for businesses while effectively implementing monetary, credit, and banking policies in the region.