According to the National Financial Supervisory Commission, decreasing the interest rate by one percent saves more than 2 billion US dollars a year. That sum of money is in turn used to boost economic growth through business operations.
The reopening of foreign currency credit for exporters introduces a new capital source for enterprises. This mitigates pressures on Vietnamese dong credit and may be the solution to lower interest rates. Many banks are trying to reduce loan interest rates to assist enterprises.
"We have made plans to reduce spending and optimise the credit process, as well as to improve the capability to tackle credit risks. We believe that such solutions will save more than 13 million US dollars to support enterprises", said Nguyen Thi Kim Oanh - Deputy General Director of Vietcombank.
New production and business plans were launched thanks to fresh capital sources.
"Interest rate reductions are an encouragement for our production and business", said Pham Huu Hung - Chairman, Board of Directors of Thanglong Metal Wares Joint Stock Company.
"The government needs to speed up finding solutions to challenges in terms of interest rates and administrative formalities, especially the latter, which are important to businesses. The government is making an effort to create a more favourable business environment", said Do Quang Hien - Chairman of Hanoi Small and Medium Enterprises Association.
According to National Financial Supervisory Commission, decreasing the interest rate by one percent can save more than 2 billion US dollars a year and, in turn, the stock market may increase by 10 percent. Governmental bonds were issued since the beginning of the year, bringing in more than 6.5 billion US dollars. This sum of money shall become a capital source to foster economic growth for the future.
