Between January and August, 992 of Da Nang’s 12,400 enterprises had their operations suspended or dissolved, and some of them are now on the brink of bankruptcy.  The main reason for the significant increase in the number of suspended or dissolved businesses is the high interest rates charged for loans.

This information was announced at a meeting on Wednesday afternoon between Mr Nguyen Dong Tien, the Deputy Governor of the State Bank of Viet Nam (SBV), the city’s leaders, and representatives of local credit institutions.

Speaking at the event, the municipal People’s Committee Vice Chairman, Mr Vo Duy Khuong, praised the local credit institutions for their significant contributions to the city’s progress.  He added that some of them had offered many preferential credit packages to local businesses to help them develop their production, agro-forestry and aquatic exports, and social housing programmes. 

Preferential credit packages can help local enterprises to stabilise production

The city leader also noted that several local banks are still providing loans at very high interest rates.  These include the Saigon-Hanoi Commercial Joint Stock Bank lending at interest rates of over 17% pa, and the Kien Long and Saigon banks at over 16% pa.

Deputy Governor Tien asked the local credit institutions to further reduce their lending interest rates to below 13% pa to help local businesses to deal with bad debts and overcome their difficulties.  In addition, special attention should be paid to giving loans for the city’s social housing and poverty reduction programmes, as well as to ensure local social welfare.