Supporting SMEs amidst Covid-19

HOANG HUYEN

BIDV has implemented drastic measures to support SMEs as the Covid-19 pandemic continues to develop complicatedly.

BIDV has launched 08 credit packages with scale up to VND150,000 billion (USD6.5 billion) for SMEs since the outset of 2021, reducing by 0.5 percent - 2 percent per year compared to normal lending rates. At the same time, the bank also reduces or exempts fees to help SMEs reduce business costs.

Since the pandemic outbreak at the end of April 2021, BIDV has quickly launched short-term credit packages to promote credit growth for SMEs in 2021 at competitive interest rates with the lowest rate being 3.8 percent per year and 7.5 percent at the highest. For SMEs doing import-export business, BIDV offers a credit package with interest rate of 6.5 percent per year at the maximum only.

BIDV implemented an online loan program to help SMEs easily access bank loans, reduce time for preparing loan documents, especially in the context of the Covid-19 pandemic.

With the goal of creating favorable conditions for Women-led Small and Medium Enterprises (WSMEs) to recover and grow their production and business activities from the impact of Covid-19, BIDV launched “Covid-19 Relief Comprehensive Financial Program for WSMEs” jointly funded by Asia Development Bank (ADB) and BIDV, offering attractive financial and non-financial solutions. For eligible existing SME customers facing difficulties due to the Covid-19 pandemic, BIDV offers many solutions including restructuring loans with extended repayment term from six months and above; supporting six months of interest up to USD10,000 per customer, applicable to structured loans with principal and interest emerging since the Covid-19 pandemic was announced in Vietnam on 23 January 2020. This program is disbursed from the USD5 million funded by the Women Entrepreneurs Finance Initiative (We-Fi) which has been entrusted to ADB.

To further support WSMEs, BIDV has offered a comprehensive financial program with preferential service fees and interest rates for longmedium term and short-term loans. Accordingly, eligible WSME customers will be offered a first-year loan interest rate of 7.5 percent p.a. at the maximum, as well as other attractive offers such as waiver or reduction of payment account fees, cash-flow management fees, trade finance/ guarantee services and e-banking services, amongst others.

BIDV's strategic business development plan for the period 2021-2025, with a vision to 2030 defines to maintain its leading position in Vietnam in terms of market share in the retail banking and SME banking segments. For years, BIDV has been honored as "Best SME Bank in Vietnam" by prestigious international organisations.