Import and export is always an area that needs to be prioritized for development to increase the impetus for economic recovery. Therefore, banks also have to direct credit flows into this sector with preferential credit packages, but more importantly, provide timely access for businesses.

The bank always gives many incentives to import and export businesses.Source: Internet.

Credit and separate financial solutions for import and export

Talking about the situation of businesses, Dr. Nguyen Tu Anh, Director of the General Economic Department, Central Economic Commission, said that despite many difficulties due to the impact of the pandemic, domestic enterprises, especially import and export ones, are facing great opportunities.

Therefore, each business should make good use of the "tripod" strategy that is: capture the supporting mechanisms and policies of state management agencies/regional economic agreements; change sales strategy and look for breakthrough new distribution channels; take advantage and optimize preeminent financial solutions to optimize resources, reduce risks and accelerate sales.

In particular, related to capital flows, many banks have now launched credit packages to support the import-export sector.

From July 1, Agribank will spend VND15,000 billion and US$300 million for individual and corporate customers to borrow capital for production, business, import and export at low interest rates, from 1.7%/year (for USD loans) and 3.5%/year (for VND loans).

In addition, Agribank also offers many incentives on foreign currency exchange rates and discounts and frees for import L/C, export L/C.

Sacombank also deployed a credit package of VND10,000 billion to support exporters and businesses to overcome difficulties in production and business from now until the end of 2021, with an interest rate of 4%-6.7%/year. From now until December 31, 2021, import-export businesses that are customers of MSB will also be able to borrow capital at an interest rate of only 6%/year for VND and from 3%/year for USD.

In addition, many banks do not reserve a separate credit package for import-export businesses, but offer general support credit packages for businesses, which emphasize five priority areas, including: import and export. Banks expect that the credit packages will create a lever for import-export businesses to sustain, recover and continue to reach out in the international market.

Not only offering credit packages, import-export businesses are also supported by banks with financial service support programs in payment and transactions. As at MSB, importers and exporters can also be financed with unsecured capital up to 90% of the contract value/export LC, 30% reduction in trade finance fees, international money transfer and 100% exemption fee for account management, Internet Banking service and electronic tax/electronic customs payment.

VPBank supports import-export business customers to issue letters of credit (L/C) 100% online, helping businesses save time and costs when they do not have to go directly to the transaction counters as before.

In addition, many banks said that in order to operate import and export payments conveniently, the bank has a team of experts to advise and accompany businesses in handling customs procedures and international payments. Regarding exchange rate risk, the bank has also provided many instruments, derivative products, futures transactions to support import and export businesses.

Still difficult to access capital

In the face of complicated developments of the pandemic, businesses want to extend the time to support debt extension, freeze debts and create a more open mechanism for businesses to borrow.

A representative of an enterprise said that interest rates have never been as low as now, but the opportunity to borrow and restore production is very difficult. Collateral is a big problem, only used to get the initial loan, but if the capital has been deposited, borrowing is very difficult.

Therefore, experts and businesses believe that the group of import-export businesses often has foreign currency sources, clear revenue sources by L/Cs, sales contracts, etc., so they can completely use these contracts, this invoice as collateral to be financed.

Therefore, according to a representative of MSB, banks are always interested in providing capital for businesses, so they have come up with solution packages to help businesses build raw material procurement plans, possibly based on output contracts, receivables to be financed without collateral.

According to economic expert Dr. Dinh The Hien, banks are always ready to lend, the problem is whether businesses can create confidence in their ability to repay debts. Enterprises that proactively have feasible production and business plans, reduce costs, and prove the necessary loan sources for direct business operations will be financed by banks, and those enterprises have many the ability to get out of trouble and grow.

Recently, Resolution No. 63/NQ-CP on the main tasks and solutions to promote economic growth, disbursement of public investment and sustainable exports in the last months of 2021 and early 2022 of the Government has set out the task to promote import and export, develop trade harmoniously and sustainably.

The resolution requires the State Bank to direct credit institutions to continue implementing solutions to remove difficulties and enhance access to capital for people and businesses; encourage credit institutions to reduce costs to continue reducing lending interest rates to support production and business. Therefore, leaders of the State Bank said that they will mobilize the consensus of credit institutions to reduce interest rates to specific levels in July 2021.