|
State-owned banks principal servers of SMEs
163,673 small- and medium-size enterprises (SMEs), or 50% of total SMEs, now have credit relations with banks, the Credit Department under the State Bank of Vietnam (SBV) reported after considering the reports from six-state owned, 31 joint-stock and 33 foreign bank branches and joint-venture banks.
The SMEs had the total capital of VND482,092bil ($30,130mil) as of July 31, 2008, of which 36.25% was equity capital, 45.31% from bank loans, and 18.44% from other sources. On average, every SME had the equity capital of VND1.33bil ($0.08mil) by July 31, 2008, while every SME had borrowed VND1.79bil ($0.11mil) from banks.
In the first seven months of 2008, banks loaned VND289,100bil ($18,068mil) to SMEs, of which VND141,816bil ($8,863mil) came from state-owned banks, or 47.7%. VND139,837bil ($8,739mil) came from joint-stock banks (47.07%) and VND7,446bil ($465.37mil) from foreign bank branches and joint-venture banks (2.5%).
The total outstanding loans given to SMEs by July 31, 2008 had reached VND299,472bil ($18,717mil), accounting for 27.3% of total outstanding loans in the national economy, an increase of 16.65% compared to December 31, 2007 and 70.5% compared to December 31, 2006. Of this amount, short-term loans accounted for 73.05%, while medium- and long-term loans 26.95%.
The outstanding loans in agriculture and rural development made up 5.1% of total outstanding loans, industries and construction 38.51%, while trade and services 56.39%.
The SBV’s report showed that state-owned banks have been leading in loaning to SMEs. They loaned VND170,481bil ($10,655mil), or 56.98% of total outstanding loans, followed by joint-stock banks with VND120,936bil ($7,558mil) in outstanding loans (40.42%). Meanwhile, foreign bank branches and joint ventures loaned VND8,053bil, or 2.6%.
Regarding non-performing loans, the report showed that the bad debt ratio in loans for SMEs of the whole banking system was 3.64% (VND10,886bil or $680mil), an increase of 1% compared to 2007 and a decrease of 0.19% compared to 2006. The amount of unrecoverable bad debts (group 5) was VND4,064bil ($254mil), or 37.3% of total non-performing loans. The biggest bad debt ratio belongs to state-owned banks, 4.59%, while the figures for joint-stock banks and foreign bank branches and joint ventures are 2.44% and 1.45%, respectively.
23% of the SMEs which had credit relations with banks were operating well, 73.2% average, while 3.8% were facing difficulties, and 1.42% at risk of losing capital.
Outstanding loans for SMEs have been increasing steadily year after year. A lot of joint-stock banks have the loaning ratio to SMEs of up to 70% of total outstanding loans, while some branches of state-owned banks have the ratio of up to 95%.
VNN
|
