“SHB is ready to provide comprehensive financial solutions for small and medium-sized enterprises (SMEs)” – a representative of SHB bank shared at the “Credit solutions” seminar recently organized by Hanoi city Small and medium-sized Business Association (HANOISME) and Hanoi Business Support Center (Hanoi Department of Planning and Investment) jointly.
SME credit, as one of five priority sector lending, have gained numerous supports from the State Bank of Vietnam and the banking system to grow considerably. However, many SMEs are still faced with capital strain due to constantly struggling world economy and the declining domestic economy.
Recently, representatives of more than 50 enterprises took part in “Credit solutions” seminar, co-hosted by Hanoisme and Hanoi Business Support Center to promote better access to credit.
As one of the pioneering banks in financing SMEs and the only bank in the seminar, – Mr. Dinh Ngoc Dung, Deputy Director of SHB Corporate Banking Division, introduced SHB’s comprehensive financial solutions provided to SMEs. “In line with the Government’s orientation and direction on the development of SMEs, SHB has strategically prioritized to grow this customer segment.” – emphasized Mr. Dung.
Preferential lending policies and programs are one of the important factors to promote credit and support customers. Over the past years, SHB has dedicated trillions of dong as preferential interest rates in various programs. Between 2023 and 2024, interest rate relief program valued VND 6,000 billion satisfy working capital requirements. VND1,000 billion medium and long-term loans funded by the Small and Medium Enterprise Development Fund (SMEDF) are expected to provide better access to fixed and low interest rate throughout the loan term.
Especially SHB has proactively fostered co-operation with international partners, namely WB, IFC, ADB,… for more competitive medium and long-term funding and technical assistance for both SHB and its customers in project financing.
A typical example of effective use of foreign capital is the cooperation between SHB and the Asian Development Bank (ADB) to implement COVID – 19 relief grant for women-led SMEs (WSMEs). Accordingly, eligible WSMEs are granted 6 months of interest and restructuring fees for restructured loans. New customers are granted with 100% of withdrawal commitment fee, maximum 10,000 USD. SHB was honored as the top among the 5 banks participating in the program: 251 projects funded and disbursed promptly with a total loan up to 1.7 million USD, including loan and technical assistance for 182/251 projects.
In order to improve customer access to bank financing, SHB is promoting digital transformation, reforming processes and procedures, shortening loan approval time; Diversified credit products to suit customer needs. In addition, the bank also actively participates in bank-business connection programs, closely working with customers for achieve customer insight and provide customized solutions. At the same time, SHB also proactively provides non-financial solutions: connecting input and output markets in the business community and consulting and training corporate finance to ensure strategic alignment.
With SMEs targeted as the key customer segment, SHB continuously strives to grow the number of SMEs by five times by 2023, in which WSME accounts for at least 15%.