Industrial property outlook

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A helping hand for SMEs

With commitment to "growing together", BIDV has offered uniform and timely solutions for small and medium-sized enterprises (SMEs) affected by the Covid-19 pandemic.

The Covid-19 pandemic has developed complicatedly around the globe. Given the world economy's deep recession due to the pandemic, as the lifeblood of the economy, banks have strengthened supporting and easing difficulties for businesses, contributing to economic recovery and pandemic prevention and fighting work.

SHARING DIFFICULTIES

In order to ease difficulties and support SMEs to maintain and restore production and business activities, BIDV has proactively implemented a series of preferential policies for SMEs such as reducing lending rates on existing loans by 1 percent/year on average, and by up to 2 percent/year compared to the current interest rate for a number of customer groups with difficulties, rescheduling repayment term, keeping the debt group as well as launching short-term credit packages totalling up to VND200 trillion (USD8.7 billion) at competitive lending interest rates.

Dai A Plastic Joint Stock Company is an enterprise operating in the field of manufacturing and exporting plastic beads. Its factory is located in Thuan Thanh Industrial Park, Xuan Lam Industrial Cluster, Bac Ninh province, about 30km from Hanoi. During the recent Covid-19 outbreak in the province, the company's operations were severely affected. Production was disrupted due to workers being under quarantine while import of raw materials and sale of products faced difficulties. Given the difficulties facing the business, BIDV actively took action to reduce lending interest rates for the customer.

Mr. Nguyen Quoc Doanh, Director of Dai A Plastic Joint Stock Company highly appreciated BIDV's timely support. Mr. Doanh said: “BIDV’s interest rate reduction has helped ease our financial pressure, particularly in the extremely difficult situation. Thanks to the financial support, along with the preferential interest rate offered by the bank, our company can sustain production and business activities.”

In addition to rate reduction programs, BIDV launched “Covid-19 relief comprehensive financial program for women-led small and medium-sized enterprises. Particularly, BIDV offers 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. BIDV also applies free structured penalties and fees related to debt structuring.

Huong Giang Trading Service Joint Stock Company is a beneficiary under the above program. The company's Huong Giang Supermarket General Service Trading Center project was put into operation during the complicated developments of the Covid-19 pandemic, which reduced the company's revenue and ability to repay debt. To support the customer, BIDV restructured the repayment term, and waived 6 months of loan interest.

Mrs. Nguyen Thi Huong, the company’s chairwoman, said that the company has established relationship with BIDV for 7 years. “We have always received financial support and comprehensive advice from the bank. In the difficult business situation, BIDV's support is of great significance to the existence and operation of our company”, said Mrs. Huong.

GROwING TOGETHER

Along with solutions to helping businesses overcome difficulties caused by the Covid-19 pandemic, BIDV has deployed digital solutions for businesses’ development.

BIDV has launched an online loan program for SMEs with quick and convenient procedure, aiming to help SMEs quickly access bank loans, reduce costs and travel time in the context of the Covid-19 pandemic.

The bank provides SMEs with convenient solutions to controlling and managing business activities through a diversified digital ecosystem, including hi-tech products and services such as electronic tax payment, 24/7 online bill payment, omnichannel payment, cash flow management, electronic collection service, virtual account solutions, etc.

In particular, in order to boost digital transformation, apply modern technology to governance and financial - accounting management, BIDV launched a SME Digital Transformation program (SME Digitrans). The bank has cooperated with MISA Joint Stock Company and Kiu Vietnam Co., Ltd. to offer incentives to at least 600 small and medium-sized businesses such as a free 2-year fee for BMP business management software, free accounting software MISA SME.NET 2020 Professional + meInvoice. BIDV also offers free-of-charge BIDV ERP connection between BIDV's iBank service - an application for institutional customers - and the above-mentioned software. In the coming time, the SME Digitrans program will continue to prioritize resources to support women-led SMEs, start-up businesses, enterprises in rural and remote areas.

BIDV's efforts to grow together with SMEs over the years have been recognized by prestigious international organizations. The bank has been honored as the Best SME Bank in Southeast Asia 2021 as voted by Global Banking and Finance magazine, and Best SME Bank in Vietnam as voted by Alpha Southeast Asia magazine and Asian Banking and Finance magazine.