In recent years, Vietnam's dairy market has grown steadily along with the prosperous development of the macro-economy, with an average annual growth rate of 17 percent in the 2011-2015 period according to figures from the Vietnam Dairy Association. In the coming years, Vietnam’s dairy sector is targeted to see continuous growth of 9 percent per annum on average.

In 2017, total turnover of Vietnam’s dairy industry exceeded VND100,000 billion (USD4.4 billion), nearly 10 percent higher than in 2016. Vinamilk contributed 50 percent of the industry's total revenue. Currently, Vinamilk’s distribution network consists of hundreds of independent enterprises and distributors (mostly SMEs and micro-enterprises) with the company having ownership of over 200,000 retail outlets and nearly 600 outlets. The company’s total turnover comes from these independent distributors.

BIDV launched the new product to provide capital for SMEs who have a direct distribution agreement with Vinamilk, financing them with the maximum preferential level of collateral (either guaranteed by Vinamilk’s products or without collateral).

Through the financing product, SMEs can enjoy competitive interest rates from only 6-6.5 percent per year. In addition, BIDV is also offering these customers flexible collateral policies such as: decreasing the collateral by 15 percent compared to the current credit policy (depending on the scale of turnover); lending without collateral; or allowing the SMEs to borrow collateralised by Vinamilk’s products.

BIDV is dedicated to supporting small and medium enterprises in Vietnam and regularly launches preferential credit packages to support them, to a total value of VND50,000 billion (USD2.2 billion) per annum. Since the beginning of the year, the bank has implemented many such packages, including short-term competitive credit packages of VND15,000 billion (USD664 million); a preferential credit package of VND11,000 billion (USD487 million) for SMEs; credit packages of VND10,000 billion (USD443 million) for medium and long term loans; a financing package of VND2,000 billion for start-ups in Hanoi; a VND10,000 billion credit package with preferential rates for SMEs who are members of VINASME as well as several other supporting credit packages in cooperation with the SME Development Fund (the Ministry of Planning and Investment), the JICA (SMEFP), and the Green Investment Facility (GIF).

For more information, contact your nearest BIDV branch or call the bank’s 24/7 hotline on 1900 9247.