|Workers select dragonfruits for export at Hoang Hau Dragon Fruit Farm Co,Ltd in central Binh Thuan Province's Ham My Commune. The State Bank of Viet Nam should consider loosening monetary policy to stimulate economic growth, young entrepreneurs said. — VNA/VNS Photo Dinh Hue.
HA NOI (VNS) — Young entrepreneurs have asked the State Bank of Viet Nam (SBV) to consider loosening monetary policy to inject more capital into the market and stimulate economic growth.
The proposal was made at the meeting between the Viet Nam Young Entrepreneurs Association (VYEA) and the SBV this week. The online news website baodautu.vn, quoted SBV Governor Nguyen Van Binh's immediate reply: "The current monetary policy is very open. Credit caps for most economic sectors have been lifted and banks have a lot of money. The question is whether companies are competent enough to meet borrowing conditions."
Official figures showed that as of end-August, outstanding loans for agricultural and rural development increased by 6.1 per cent while outstanding loans for other purposes increased as well, including exports by 4.37 per cent, technological application by 12.73 per cent, support industries by 6.12 per cent, small and medium-sized enterprises by 2.57 per cent, and real estate by 9.85 per cent. However, these growth rates remained relatively low.
"Banks will knock at your doors if your companies are good," Binh remarked. While it will be unlikely for the SBV to lower borrowing standards and conditions, it is currently implementing projects that connect banks and enterprises, with support from local authorities.
Entrepreneurs urged the SBV to make it easier for start-up companies to access bank credit, especially trust loans. Binh noted that Viet Nam's policy makers have already issued documents that aim at boosting the provision of trust loans, and commercial banks and credit rating agencies were likely to take their first cautious steps toward providing loans without requiring collateral by evaluating company portfolios and leadership.
Nguyen Thi Hong, the SBV deputy governor, said earlier this month that if assessments of companies' payment capacity and business plans were positive, credit institutions may provide trust loans.
Experts said both banks and companies needed each other to spend capital, but much work remained to be done to develop trust before additional credit would be extended. — VNS