PhD, Nguyen Trung Truc
Faculty of Finance and Accounting,
Nguyen Tat Thanh University
Abstract: Reducing the cost of using loans for enterprises, in general, exporting enterprises in particular is very important. Because export is one of the outputs of the economy, promoting GDP growth, increasing budget revenue, increasing foreign currency revenue, and improving the lives of workers, especially in the post-Covid19 pandemic, therefore, the Government has many solutions to reduce the cost of using loans for businesses, such as preferential credit and interest rate compensation. Within the scope of this article, the author proposes a new solution that is based on inflation, interest rates and exchange rates, the State Bank of Vietnam should lend foreign currency loans to exporting enterprises.
1. Theoretical basis of foreign currency loans
Thus, the real interest rate when borrowing foreign currency is calculated as the formula (2.1)
2. Actual situation about interest rate for foreign currency loans in the years 2020 – 2021
Actual movements of the USD exchange rate against VND over the years are as follows
Exchange rate on Dec 31 2019 (early 2020): 23,110 VND/USD
Exchange rate on December 31, 2020 (early 2021): 23,215 VND/USD
Exchange rate on Dec 31 2021 (early 2022): 22,920 VND/USD
US government bond yields ranged from 1.50% to 1.97%. The author calculates a maximum of 2%
With the actual exchange rate moves as above, applying formula (2.1), the real interest rate is calculated when Vietnamese enterprises borrowed US dollars in 2020 and 2021 as follows:
With the calculated results on the real interest rate, when borrowing foreign currency (USD) in 2020 it was only 2.4624%/year and in 2021 it decreased to 0.7082%/year, which is lower than the interest rate when borrowing VND, which fluctuates by 6.50%- 7%/year.
3. Proposals, recommendations:
With the results are calculted in Section 3, the author proposes that the Government and the State Bank of Vietnam should lend foreign currency (USD) to export enterprises at an interest rate of 2%/year, which is equal to the interest rate of US Government bonds, about 10 billion USD (Out of the total reserve of nearly 110 billion USD), equivalent to 230,000 billion VND to exchange for VND to purchase and process export goods. This will help Vietnamese export enterprises reduce annual interest expenses by at least 6,900 billion VND (230,000*(5% – 2%)), which can promote economic growth, increase budget revenue, increase foreign currency revenue, and improve improving people’s lives, after the Covid19 pandemic.
REFERENCES
Tài liệu trong nước
01) Nguyễn Trung Trực, 2018, Giáo trình Tài chính doanh nghiệp 1, Nhà xuất bản ĐHCN Tp HCM
Tài liệu nước ngoài
Stephen A. Ross, Randolph W. Westerfield and Jeffrey Jaffe, 2021. Fundermentals of Corporate Finance 13th edition. Published by McGraw-Hill
Jeff Madura, 2018. International Financial Management, 13th edition. Published by McGraw-Hill.
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