{"id":6751,"date":"2022-03-11T16:08:24","date_gmt":"2022-03-11T09:08:24","guid":{"rendered":"http:\/\/ffa.ntt.edu.vn\/?p=6751"},"modified":"2022-03-18T16:21:14","modified_gmt":"2022-03-18T09:21:14","slug":"lending-foreign-currency-loans-to-exporting-enterprises","status":"publish","type":"post","link":"https:\/\/ffa.ntt.edu.vn\/en\/lending-foreign-currency-loans-to-exporting-enterprises\/","title":{"rendered":"LENDING FOREIGN CURRENCY LOANS TO EXPORTING ENTERPRISES"},"content":{"rendered":"

PhD<\/strong>, Nguyen Trung Truc<\/span><\/p>\n

Faculty of Finance and Accounting,<\/span><\/p>\n

Nguyen Tat Thanh University<\/span><\/p>\n

Abstract<\/strong>:<\/strong> 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.<\/span><\/p>\n

1. Theoretical basis of foreign currency loans<\/strong><\/span><\/p>\n

\"\"<\/span><\/p>\n

Thus, the real interest rate when borrowing foreign currency is calculated as the formula (2.1)<\/span><\/p>\n

2. Actual situation about interest rate for foreign currency loans in the years 2020 – 2021<\/strong><\/span><\/p>\n

Actual movements of the USD exchange rate against VND over the years are as follows<\/span><\/p>\n

Exchange rate on Dec 31 2019 (early 2020): 23,110 VND\/USD<\/span><\/p>\n

Exchange rate on December 31, 2020 (early 2021): 23,215 VND\/USD<\/span><\/p>\n

Exchange rate on Dec 31 2021 (early 2022): 22,920 VND\/USD<\/span><\/p>\n

US government bond yields ranged from 1.50% to 1.97%. The author calculates a maximum of 2%<\/span><\/p>\n

With the actual exchange rate moves as above, applying formula (2.1),\u00a0 the real interest rate is calculated when Vietnamese enterprises borrowed US dollars in 2020 and 2021 as follows:<\/span><\/p>\n

\"\"<\/span><\/p>\n

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.<\/span><\/p>\n

3. Proposals, recommendations<\/strong>:<\/strong><\/span><\/p>\n

\u00a0 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.<\/span><\/p>\n

REFERENCES<\/strong><\/span><\/p>\n

T\u00e0i li\u1ec7u trong n\u01b0\u1edbc<\/strong><\/span><\/p>\n

\u00a001) Nguy\u1ec5n Trung Tr\u1ef1c, 2018, Gi\u00e1o tr\u00ecnh T\u00e0i ch\u00ednh doanh nghi\u1ec7p 1, Nh\u00e0 xu\u1ea5t b\u1ea3n \u0110HCN \u00a0Tp HCM<\/span><\/p>\n

T\u00e0i li\u1ec7u n\u01b0\u1edbc ngo\u00e0i<\/strong><\/span><\/p>\n

Stephen A. Ross, Randolph W. Westerfield and Jeffrey Jaffe, 2021. Fundermentals of Corporate Finance 13th edition. Published by McGraw-Hill<\/span><\/p>\n

Jeff Madura, 2018. International Financial Management, 13th edition. Published by McGraw-Hill.<\/span><\/p>\n

\u00a0<\/strong>Web:<\/span><\/p>\n

https:\/\/tygiahomnay.com\/do-la-my-ngay-31-12-2019<\/a><\/span><\/p>\n

https:\/\/tygiahomnay.com\/do-la-my-ngay-31-12-2020<\/a><\/span><\/p>\n

https:\/\/tygiahomnay.com\/do-la-my-ngay-31-12-2021<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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…<\/p>\n","protected":false},"author":23,"featured_media":6745,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[79,64,112],"tags":[],"class_list":["post-6751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-engagement","category-news","category-research"],"_links":{"self":[{"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/posts\/6751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/comments?post=6751"}],"version-history":[{"count":0,"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/posts\/6751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/media\/6745"}],"wp:attachment":[{"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/media?parent=6751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/categories?post=6751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ffa.ntt.edu.vn\/en\/wp-json\/wp\/v2\/tags?post=6751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}