Representatives from businesses in the Mekong Delta region have calledfor better access to credit sources allowing enterprises to renovatetheir technology.

They made the proposal at aNovember 25 conference on the use of bank credits to boostsocio-economic development in the region, as part of the ongoing 2013Mekong Delta Economic Cooperation Forum (MDEC Vinh Long 2013).

According to the State Bank of Vietnam, investments to the region have seen impressive growth.

As of the end of August, total outstanding loans at local creditinstitutes reached 301.6 trillion VND (14.17 billion USD), up 9.71percent from the end of December 2012; higher than the average creditgrowth of the whole sector.

Bad debts in the regionhave been kept lower than the country’s average figure, accounting foronly 3.38 percent of total outstanding loans.

However, the region faces capital shortages, as investments have metonly 78 percent of the need for socio-economic development. Meanwhile,credit efficiency has been poor, with loans predominantly allocated toagriculture projects, leaving other sectors underfunded.

During the conference, participants pointed out difficulties ofbusinesses to access capital sources. They also proposed a number ofmeasures to enhance banks’ capacity of mobilising capital and lending.

They also sought ways to strengthen connectivitybetween bank credits and other capital sources, contributing to boostinglocal socio-economic development.

Representativefrom regional localities and enterprises also suggested that the centralbank continue to implement preferential policies on middle andlong-term loans for businesses with low interest rates, allowing firmsto invest in technological upgrades and research for new products inhighly competitive sectors.

It was also argued thatcredit institutions should expand their network to rural areas anddiversify their credit services, enhancing capital efficiency to exploitadvantages and potential of the region and creating momentum for theregion to develop sustainably.-VNA