Representatives of the business community acknowledged the banking sector’s efforts to accelerate administrative reform, but said there remain obstacles to their production and business activity.

Many complained that it is difficult for them to take out subsidised loans under the government’s stimulus package, given current conditions. They wondered whether they could roll over the loans to enjoy subsidised interest rates for medium- and long-term loans.

Businesses specialising in capital construction asked if they could access preferential loans to purchase machinery for their projects.  

They proposed that banks consider amending current regulations to make it easier for businesses to take out loans. They said the central bank should add those involved in importing production materials to the list of businesses that enjoy subsidised interest rates.

According to Nguyen Ngoc Bao, head of the monetary policy department under the State Bank of Vietnam, if businesses are unable to pay their debt on time, commercial banks will reconsider the deadlines and continue to offer new loans to help businesses maintain production under the current regulations.

For businesses not in difficulty, State commercial banks will continue to cut interest rates, extend deadlines for debt payment, and consider giving out no-interest loans.