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Many foreign banks “pour” capital into businesses and the Vietnamese economy

Many foreign banks “pour” capital into businesses and the Vietnamese economy

Thursday 13, 08 2020
A member of the World Bank Group announced that it would provide a $70 million loan to Vietnam Print Do Tran Shipping and Forwarding Joint Stock Company (ITL Corp)

Vietnam's logistics industry has experienced strong growth in recent years. In particular, the industry's growth was partly due to record high foreign investment, mainly in the manufacturing and processing industries (two industries requiring strong logistics operations, and a boom in domestic consumption. ).

However, the logistics industry is still fragmented with over 95% of service providers being domestic small and medium enterprises with modest scope of operation and low competitiveness. As a result, only a few foreign-invested companies are leading the market and providing high value-added services.

In this context, the IFC funding package is considered the first investment in Vietnam's logistics industry, and will also help ITL Corp transform and grow through asset additions. In particular, ITL Corp has more favorable conditions to develop new warehouses and facilities and to deploy advanced information technology systems.

Many foreign banks “pour” capital into businesses and the Vietnamese economy

Furthermore, this investment will enable ITL Corp to provide a wider variety of integrated and higher quality logistics services to customers. In it, there are domestic manufacturers, small and medium enterprises ...

According to Mr. Ben Anh, General Director of ITL Corp, the long-term funding package and international expertise of IFC, especially in the current pandemic context, is very valuable support and will certainly help ITL Corp improve. current logistics system performance. At the same time, ITL Corp will expand its network and business portfolio to better serve customers.

Currently, high logistics costs increase overall business costs, as well as negatively affect Vietnam's competitiveness both globally and domestically. Therefore, IFC decided to invest in Vietnam's logistics supply chain to enhance the efficiency and competitiveness of its trade.

Similarly, Bac Giang Garment Corporation LGG, which produces personal protective equipment, has just received a disbursement from Standard Chartered's global financial package worth $ 1 billion, to support the public. COVID-19 pandemic prevention.

Mr. Luu Tien Chung, General Director of Bac Giang Garment, LGG said that in the context of the COVID-19 pandemic continuing to cause negative effects on the health of people around the world, increasing the supply of protective equipment. Households can make a huge contribution to protecting the health and safety of everyone. With Bac Giang Garment's production capacity, LGG can play an active role in pandemic prevention and has added fabric masks to the production line.

"Standard Chartered Bank credit will support May Bac Giang LGG to expand production, to meet the growing demand for protective equipment in many countries severely affected by pandemic ", Mr. Luu Tien Chung added.

Previously, in March 2020, Standard Chartered Bank launched a financial package with preferential interest rates to support businesses in providing products and services for COVID-19 prevention.

This financial package is intended for manufacturing and distribution companies in the pharmaceutical and healthcare sectors; The company does not operate in the medical field but is involved in manufacturing products such as breathing apparatus, masks, protective equipment, antiseptic solutions and consumer products for pandemic prevention.

Or businesses operating in other sectors but planning to expand production into pandemic prevention products can also receive support from this financial package.

Accordingly, Bac Giang Garment LGG is a large-scale garment enterprise in Vietnam receiving a credit limit of VND 63 billion (equivalent to about 2.7 million USD) as working capital for production activities. fabric masks to meet Standard Chartered Bank's need for personal protective equipment in the fight against the COVID-19 worldwide pandemic.

Mr. Nirukt Sapru, General Director of Vietnam and Group of 5 ASEAN and South Asia countries, Standard Chartered Bank said that through this support package, the bank joined hands with May Bac Giang LGG in the fight against the COVID- 19.

Standard Chartered Bank is also committed to providing support to customers and communities in the spirit of the brand promise ‘Here for good’. At the same time, will continue to work closely with customers and partners in pandemic prevention and economic recovery.

Also in the group of foreign banks supporting businesses and Vietnam's economy, HSBC Vietnam became the first foreign bank to issue bonds worth 600 billion VND in the Vietnamese market.

With par value of VND 100,000 / bond, the bond with the name Hoa Sen according to the national flower of Vietnam, has a fixed interest rate of 5.8% / year on par and three-year term. Excessive registration of transactions by investors proves the bank's strong brand name in the Vietnamese market.

Regarding this event, Mr. Tim Evans, General Director of HSBC Vietnam, said that this bond issuance is on the occasion of the 150th anniversary of the establishment of HSBC in Vietnam and affirms the long-term commitment of the Bank to the country of Vietnam.

The proceeds from the issuance will be used by HSBC Vietnam to increase the bank's operating capital, diversify the dong capital sources, to serve the bank's sustainable business growth during the period. time to come.

HSBC Vietnam also plans to issue regular bonds in the market, continuing to build a leading international bank position in Vietnam. The Bank wishes to play a pioneering role in the continuous development of Vietnamese enterprises and capital markets.

Translated by Vietnam Credit

Categories
Banking & Finance

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