BIDV Okays VND3 Tln Loan for Coffee, Woodwork Firms
The Bank of Investment and Development of Vietnam (BIDV) December 22 signed a number of contracts with coffee and woodwork companies in southern central and central highlands provinces to lend them VND3 trillion (US$176.4 million).
Seven companies in central Binh Dinh province alone signed agreement with the bank to borrow VND1.5 trillion.
BIDV’s move is aimed at helping to ease the impact of the global financial crisis, which has resulted in a drop in Vietnam’s exports, with farm produce like wood and coffee being particularly affected, BIDV’s chairman Tran Bac Ha.
He added that the contracts, to come into effect just early 2009, will facilitate local companies’ operation in the year.
In the 2006-2008 period, BIDV’s total loans for coffee and woodwork companies reached VND17.35 trillion, of which VND8.1 trillion was for 2008.
The BIDV’s loans are expected to rise to VND14.3 trillion next year, accounting for 25 per cent-30 per cent of the total loans for the two sectors.
Vietnam expected to reap US$4.8 billion from coffee and woodwork exports in 2008. (Labor, Youth)
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