VIETNAM Two-thirds of firms can't get loans: survey

by 1alaskan Fri May 11, 2012 9:04 pm

Two-thirds of firms can't get loans: survey

VietFinanceNews.com - Nearly two-thirds of 60 businesses in HCM City and Da Nang say they were unable to access credit last year, and that the problem continues this year, according to a survey by the National Financial Supervisory Commission.

The survey found that 61.5 per cent of surveyed companies also expected to meet with difficulties repaying debt over the next 12 months.

It also revealed that domestic businesses were in greater difficulties than foreign-invested enterprises. Local firms saw export demand slow significantly in the first four months of this year, with export turnover rising by only 4 per cent for domestic companies, compared to 36 per cent for the foreign-invested sector.

Foreign-invested businesses still had greater advantages in accessing cheap sources of capital not only oversea banks but from foreign banks operating in Viet Nam, able to access capital from foreign banks at yearly interest rates of 12 to 14 per cent compared to 17 to 19 per cent at Vietnamese banks.

http://www.vietfinancenews.com/2012/05/two-thirds-of-firms-cant-get-loans.html