5 Dec 2018
VIETNAM: Foreign Currency Loans for Exporters Now Available Until December 2019
The State Bank initiative that gave local exporters access to foreign currency-denominated loans will now run until 31 December 2019. Under the terms of the scheme, which was originally scheduled to be withdrawn at the end of this year, commercial banks have been permitted to extend short-term loans in overseas currencies to local exporters in order to cover the costs of imported input materials.
The extension of the initiative forms part of official moves to raise the competitiveness of the country’s export-oriented businesses by reducing their borrowing costs. At present, interest rates for the short-term US dollar-denominated loans offered by the country’s commercial banks range between 2.8%-4.7%, while borrowings in VND, the local currency, are in the notably higher 6%-9% interest band.