Loans inaccessible for firms to upgrade technologies (05/4)
05/04/2012 - 15 Lượt xem
Undeveloped technologies have resulted in low productivity, high cost prices, unstable quality, and low competitiveness for the businesses’ products, economic website Saigon Times Online reported.
Huynh Van Hai, director of the Bao Long Food Technology Production Co, has repeatedly failed to borrow the VND2 billion (US$96,000) needed for his plan to upgrade the company’s technology.
The company can afford VND8 billion of the VND10-billion plan, and it expects to cover the remaining from the special loan at interest rate of only 7 percent a year, as offered by Ho Chi Minh City’s master plan to enhance production technologies of firms operating around the city, the director said.
However, over the last year, Hai has yet to receive any response from the Fund for Scientific and Technological Development of HCMC on his files asking for a loan.
“Though it may take five or ten more years, I’m determined to access this source of capital,” he said.
Also the chairman of the Business Association of Hoc Mon District, Hai said other firms in the area also facing capital shortages for their technology upgrading plans.
“They are all rejected by banks.”
Not as patient as Hai is Nguyen Van Nam, deputy CEO of Dai Phat Group, who said his company had to borrow loans at exorbitant rates to implement their upgrading plan.
“The paperwork for the preferential loan is too complicated,” said Nam.
“We now have to clear bank interest worth VND6 billion annually for the huge loan of VND30 billion.”
Difficulties
According to a recent survey by the United Nations Development Program, which polled 100 businesses in Hanoi and HCMC, only 3 percent of the firms’ total revenues are earmarked for enhancing machinery and technology.
Meanwhile, most of the plans for loans are turned down by banks and credit funds for several reasons which businesses said have been used for years” “the companies do not know how to develop a plan,” “the plan has low economic effectiveness,” or “ineffective plan to repay debts.”
“The assessment experts of the banks are not industry insiders, so they cannot evaluate our plans accurately,” the businesses accused.
This is also the reason why many medium- and small-sized enterprises cannot access bank loans, though their plans are well developed.
“I have even asked a friend of mine, who is the director of a credit fund, to review the plan before sending it to the bank, but nothing has changed,” said Hai of Bao Long Co.
Source: TuoitreNews.
Huynh Van Hai, director of the Bao Long Food Technology Production Co, has repeatedly failed to borrow the VND2 billion (US$96,000) needed for his plan to upgrade the company’s technology.
The company can afford VND8 billion of the VND10-billion plan, and it expects to cover the remaining from the special loan at interest rate of only 7 percent a year, as offered by Ho Chi Minh City’s master plan to enhance production technologies of firms operating around the city, the director said.
However, over the last year, Hai has yet to receive any response from the Fund for Scientific and Technological Development of HCMC on his files asking for a loan.
“Though it may take five or ten more years, I’m determined to access this source of capital,” he said.
Also the chairman of the Business Association of Hoc Mon District, Hai said other firms in the area also facing capital shortages for their technology upgrading plans.
“They are all rejected by banks.”
Not as patient as Hai is Nguyen Van Nam, deputy CEO of Dai Phat Group, who said his company had to borrow loans at exorbitant rates to implement their upgrading plan.
“The paperwork for the preferential loan is too complicated,” said Nam.
“We now have to clear bank interest worth VND6 billion annually for the huge loan of VND30 billion.”
Difficulties
According to a recent survey by the United Nations Development Program, which polled 100 businesses in Hanoi and HCMC, only 3 percent of the firms’ total revenues are earmarked for enhancing machinery and technology.
Meanwhile, most of the plans for loans are turned down by banks and credit funds for several reasons which businesses said have been used for years” “the companies do not know how to develop a plan,” “the plan has low economic effectiveness,” or “ineffective plan to repay debts.”
“The assessment experts of the banks are not industry insiders, so they cannot evaluate our plans accurately,” the businesses accused.
This is also the reason why many medium- and small-sized enterprises cannot access bank loans, though their plans are well developed.
“I have even asked a friend of mine, who is the director of a credit fund, to review the plan before sending it to the bank, but nothing has changed,” said Hai of Bao Long Co.
Source: TuoitreNews.
