Removing capital bottlenecks for BOT projects
At the Government Standing Committee meeting working with commercial banks to accelerate, break through, promote growth and control inflation on February 11, Mr. Do Minh Phu, Chairman of the Board of Directors of TPBank said: In recent times, TPBank has actively participated in financing many important build-operate-transfer (BOT) projects, playing a key role in developing national transport infrastructure. One of the typical projects is the Huu Nghi - Chi Lang expressway.
After careful calculation and evaluation, TPBank has decided to provide up to VND2,500 billion in capital and committed to disbursing this week. This demonstrates TPBank's initiative and responsibility in resolving difficulties for the project to ensure construction progress, contributing to realizing the goal of 3,000 km of expressway by 2025, even though the public capital ratio has not been adjusted to 70:30.
While the Dong Dang - Tra Linh project has been allowed by the Government to increase the public capital ratio to 70%, the Huu Nghi - Chi Lang project has not yet been resolved to increase the ratio. In parallel with the capital provision, TPBank would like to propose that the Government consider adjusting the ratio for this project.
In fact, in recent times, TPBank has not only focused on Huu Nghi - Chi Lang, but has also sponsored many other key infrastructure projects such as Cam Lam - Vinh Hao, the coastal road of Thai Binh, Nam Dinh, Hai Phong and route 830 in Long An. The total outstanding credit balance for TPBank's BOT projects has now reached VND 7,897 billion, affirming the bank's active role in supporting national infrastructure development.
However, the head of TPBank said that one of the biggest barriers for banks participating in BOT financing is the credit room limit. Currently, funding for these projects is calculated into the general credit limit, making it difficult for TPBank and other banks to expand support. Therefore, TPBank proposed that the State Bank consider exempting the credit room for BOT loans, creating more favorable conditions for credit institutions to participate in infrastructure investment.
Ready to accompany green credit and social housing
Besides BOT projects, TPBank Chairman Do Minh Phu said: This bank especially focuses on green credit and social housing - two strategic areas in sustainable economic development.
TPBank leaders analyzed: Currently, green credit is becoming an inevitable trend, especially when many international markets have set strict environmental standards for imported goods. Realizing this, TPBank has stepped up capital provision for clean energy projects, sustainable production and environmentally friendly works. By the end of 2024, this bank had disbursed nearly VND 7,400 billion for green credit projects, making an important contribution to the green transformation of the economy.
In the social housing sector, TPBank is one of the pioneering banks participating in the VND145,000 billion lending program under Resolution 33/NQ-CP. With the goal of creating conditions for low-income people to access housing, the bank has committed to providing VND5,000 billion in funding, of which nearly VND800 billion has been disbursed in the first phase.
“Although TPBank has made great efforts to support social housing, the implementation still faces many obstacles, especially in terms of legal procedures and counterpart funds. Therefore, the bank hopes that the Government will have better support policies, such as simplifying licensing procedures and increasing land funds for social housing. This will not only help people easily access housing but also promote credit development in the right direction.
Chairman Do Minh Phu affirmed: TPBank has clearly demonstrated its pioneering role in financing BOT projects, green credit and social housing, contributing to promoting sustainable infrastructure and economic development. However, to make these programs more effective, the bank hopes to have support from the Government and the State Bank in adjusting the public capital ratio, exempting the credit room for BOT and improving the legal mechanism for social housing.
Taking advantage of the macroeconomic environment, the Government has created and contributed to growth.
Speaking frankly at the Conference, Mr. Do Minh Phu also said: In the current context, economic growth and credit targets are difficult and challenging tasks.
However, TPBank's leaders believe that, looking at reality, there is enough basis to assess that the goal is achievable and only when completed can it contribute to the common goal of the Prime Minister and the Government, which is GDP growth of at least 8%.
TPBank leaders analyzed: Vietnam's economy is entering a relatively clear cycle of development and recovery. GDP has grown by more than 7% and especially the 3 pillars to help the economy recover and develop: Export - investment - consumption. In which, according to statistics, exports last year reached about 405 billion and the country's import-export turnover was about 786 billion USD. This is an extremely important foundation, from which we can see the direction of the Prime Minister, the determination of the ministries. Only with growth can businesses be able to absorb capital. Because, if the economy cannot develop, no matter what efforts are made, even with very low lending interest rates, businesses and people will not be sure to use bank capital.
In line with the Government's policies and goals, over the past time, the State Bank has improved and applied the mechanism of granting credit ratings to banks, based on rating assessments, according to the international CAMELS program, increasing the initiative for banks.
In 2024, TPBank's outstanding credit balance in 2024 will reach about 20.25% higher than the industry's growth. Because for banks rated A, the State Bank has allowed the most reasonable calculation.
Commercial banks, including TPBank, have a policy of 3 reductions: Reducing lending interest rates (in 2024, TPBank reduced about 1,900 billion for about 92,000 customers on a total outstanding loan of 183,000 billion to support the economy and support businesses); reducing procedures, applying simplification of procedures; reducing inappropriate internal processes and applying technology using big data so that banks can evaluate...
With the 3 reduction strategy, TPBank still has high credit growth, along with controlling bad debt at 1.4%.
TPBank representative assessed: Banks generally have a sense of companionship and are willing to share the difficulties of businesses. Therefore, with the strong direction of the Government, the determination of the banking industry, and the economy has entered a recovery phase, I think it is certainly possible to achieve a 16% credit growth as set by the State Bank.
With the determination to accompany the country's development, TPBank continues to commit to contributing strong financial resources, helping Vietnam achieve its socio-economic goals in the coming time.
