Hanoi (VNA)💜 – Banks have designed various measures and solutions in order to tackle difficulties facing businesses affected by the COVID-19 pandemic.

Right after COVID-19 entered Vietnam, the banking sector has promptly designed plans to support affected businesses. Leaders of some banks have shared the solutions.

Chairman of the Board of Managers at Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) Le Duc Tho:

VietinBank has increased the scale of a credit package with the lowest interest rate in the market to about 30 trillion VND, and the interest rate will be further reduced by 1.5 percent per year for VND loans and 0.5-0.7 percent per year for USD loans. At the same time, VietinBank will continue implementing other unlimited credit programmes with interest rate lower than normal by 1.25-3 percent per year. We have coordinated closely with customers to restructure the payment date, exempt and reduce interest rate, and maintain the type of loans in line with regulations of the State Bank of Vietnam, while reforming the procedure of lending, so as to make it easier for businesses and people to access credit and banking products and services at reasonable costs. At the same time, we have reduced cost and increased the application of information technology, while simplifying procedures to raise labour productivity, enabling us to reduce lending rate and maintain the rate at a low level. VietinBank has also reduced international payment fees and offered trade sponsor up to 100 percent to businesses operating in the area of pharmaceuticals and medical supply as well as customers engaging in trade transactions with partners in China, the Republic of Korea and pandemic-ravaged countries. Meanwhile, VietinBank has built scenarios to adapt to COVID-19 pandemic, ensuring its continuous operation and services.

Nguyen Thanh Tung, Deputy General Director of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank):

Vietcombank has applied a credit package to support COVID-19-affected customers since February 11 right after the pandemic showed signs of spreading globally, with total loans subject to support initially amounting to about 78 trillion VND. Due to the increasingly complicated and spreading pandemic situation, we are considering the expansion of the scope of customers eligible for support as well as the total value of loans subject to support to 120 trillion VND. Specifically, interest rate will be reduced by 1 percent per year for existing short-term VND loans; 1.5 percent per year for middle and long-term VND loans; 0.5 percent per year for short-term USD loans; and 0.75 percent per year for middle and long-term USD loans. Vietcombank has authorised its branches to reduce interest rate to support customers. Besides, we have also offered lending programmes with low interest rate at lowest rate of 5 percent to trusted customers. Customers affected by COVID-19 pandemic who are not enjoying existing promotion programmes of the bank will receive preferential interest rate, most of whom are businesses operating in transport, tourism, restaurants, food import-export with China. According to our calculation, the total outstanding loans of those groups of customers are worth about 120 trillion VND, and the support will lead to about 300 billion VND reduction in the bank’s revenue. But for now, the bank’s profit is not the first thing we care about, as we give top priority to deal with difficulties of customers to help them develop sustainably.

Nguyen Dinh Tung, General Director of Orient Commercial Joint Stock Bank (OCB):

Amidst the complicated development of COVID-19 pandemic, OCB has offered many products and programmes to support customers. For businesses, we have launched a 500 billion VND credit package for exporters, importers and suppliers in prioritised sectors and micro, small and medium-sized enterprises. An online channel at has been launched for companies to borrow money without having to come to the bank directly. OCB has also designed plans to protect customers’ health and ensure smooth and safe transactions. After the State Bank issued Circular 01, the bank has based on the document to restructure debts, and reschedule debt payment for customers. The bank has carefully evaluated the business conditions of customers and the influence of the pandemic on them, in order to make suitable support solutions. Alongside, OCB also encourages customers to use online transactions to reduce the risk of making contact with high-risk objects such as banknotes.

Dao Gia Hung, Vice Director for SME Division at Vietnam Prosperity Joint‑Stock Commercial Bank (VPBank)

As a bank with the largest number of financial solutions for small and medium sized enterprises (SME) in the market, we realized that SMEs are the most vulnerable group due to their modest capital resources. Along with reviewing customers that may be directly or indirectly affected by the COVID-19 pandemic, we have designed plans to restructure debts and reschedule debt payment to minimize impacts on customers. For special cases, VPBank will reduce interest rates. Customers suffering direct impacts such as those in tourism, logistics and companies using materials imported from China, the Republic of Korea, Japan and European countries will be reviewed basing on their business history. Although our business will be affected for a certain period, but it is not an obstacle for us in joining the fight against the pandemic together with the entire economy.

Nguyen Anh Tuan, Vice Director for Business Banking at Vietnam Technological and Commercial Joint‑ stock Bank (Techcombank):

We have analysed the impacts of COVID-19 pandemic on businesses and directly met with customers to learn about their needs and design supporting policies accordingly. The first group of solution will deal with difficulties in liquidity. After exploring the need of customers, we will put forth solutions such as extending payment date and restructure debts, thus ensuring the liquidity in this period. Secondly, as revenues of companies may be slumped while costs remain unchanged or even increase, we will offer suitable credit package and interest package to assist businesses. In the past two years, Techcombank has exempted fees for all online money transfer transactions for domestic business customers. We have also broaden the group of customers transferring money and trading foreign currency online, with fees reduced by half compared to direct transactions at the bank. This is also a more economical way for customers to buy and sell foreign currency. This is among measures to accompany with businesses and promote a cashless society. In return for our “gift” to customers, we win their loyalty and have more chances to get better understanding of them to offer them most suitable solutions./.