As difficulties keep piling up, import-export businesses need to solve the problem of capital and balance financial costs.

The bank has provided many credit and financial support programs
for import-export businesses. Photo: ST

Need to optimize financial solutions

According to the General Statistics Office, the export turnover of goods was estimated at US$26 billion in May, down 2.1% compared to the previous month, but still up 35.6% over the same period last year.

Generally, in the first five months of 2021, export turnover of goods was estimated at US$130.94 billion, up 30.7% over the same period last year.

The above figures show that import and export activities of enterprises have prospered, but there are still many difficulties about raw material costs, logistics charges, direct trade is difficult to implement, even taking care of the costs of testing and vaccinating workers. This is difficult for import-export businesses because there is no revolving cash flow in production, and business costs increase.

However, Dr. Nguyen Tu Anh, Director of the General Economic Department, Central Economic Commission, said that import-export businesses have more opportunities than challenges. Enterprises should use good opportunities and strategies, of which, we need to take advantage of financial solutions to optimize resources, reduce risks and accelerate sales.

According to Mr Tu Anh, import-export businesses, especially small and medium-sized enterprises, are not concerned about support policies, so they need to study and research them carefully.

According to Circular 39/2016/TT-NHNN stipulating lending activities of credit institutions and foreign bank branches to customers, the export sector is one of the five priority areas for loans. The State Bank of Vietnam (SBV) said that by the end of April 2021, credit for the export sector (excluding investment in corporate bonds) reached more than VND281,000 billion, an increase of about 3.5% compared to the previous year, accounting for nearly 3% of the total outstanding loans of the whole economy.

Unlock cash flow

Understanding the above problems of import-export businesses, banks have many preferential programs and credit programs that are "tailored" specifically for these businesses. Most recently, VietinBank has announced the implementation of an incentive program for corporate customers operating in the field of import and export.

Accordingly, customers will enjoy incentives on exchange rates, trade finance fees and international payments, and exempt from many fees when opening payment accounts at the same time and using VietinBank eFAST services. The program is implemented by Vietinbank until the end of May 2022.

At MSB, from now until the end of 2021, import-export businesses which are customers of this bank will be able to borrow capital in VND with interest rates from only 6%/year and from 3%/year with USD. Not only with super preferential loan interest rates, customers can also be financed with unsecured capital up to 90% of the contract value/export LC. When using this comprehensive credit solution, businesses will receive a 30% discount on trade finance fees, international money transfers and a 100% exemption on account management fees, Internet Banking services and e-customs tax payment.

BIDV is also implementing a short-term credit package with preferential interest rates with a scale of up to VND10,000 billion for small and medium-sized enterprises doing import and export business, with interest rates from 3.8%/year-6.5 %/year, applicable for a term of 3-9 months.

At SHB, businesses are provided with a discount product for export documents with a maximum discount period of up to six months with various payment methods as: Letter of Credit (L/C at sight, L/C deferred, L/C UPAS (L/C at sight), transferable L/C); Collection (For immediate collection of D/P, for deferred payment of D/A); CAD (Delivery of cash receipts immediately).

Mr. Nguyen Hoang Linh, General Director of MSB, said that the comprehensive financial and credit solution packages for import-export businesses are to help businesses quickly clear capital and promote the development of import-export activities, overcome the crisis caused by the Covid-19 pandemic and create momentum to reach the end of the year business goals in 2021.

In addition, many banks said that businesses have export contracts, banks are completely ready to advance money for businesses to have capital for production. Banks also invest in a team of consultants in the field of import and export, helping to connect international partners to support businesses to expand markets and help guarantee businesses.

On the management side, the Government issued Decree No. 75/2011/ND-CP dated August 30, 2011 on investment credit and export credit of the State, the Ministry of Finance has also issued Circular guidance on this Decree.

Accordingly, businesses that meet the requirements under the Decree will be able to borrow a maximum loan amount equal to 85% of the value of the signed export or import contract or the L/C value for loans before delivery or the valid bill of exchange for lending after delivery, and at the same time, it must ensure that the maximum loan amount for each foreign exporter or importer does not exceed 15% of the actual charter capital of the Vietnam Development Bank. The loan term does not exceed 12 months.

It can be seen that the capital problem of import-export enterprises always needs the support of the authorities in the banking industry. However, to meet the requirements of banks, many businesses are still struggling. Therefore, businesses want support policies to be more appropriate and practical.