Boosting bank credit, contributing to economic growth of 4 southwestern provinces

State Bank Governor Nguyen Thi Hong speaks at the conference - Photo: VGP/Huu Chung

Speaking at the Conference, Governor of the State Bank of Vietnam Nguyen Thi Hong highly appreciated the achievements of the banking sector in Region 13. By the end of 2024, the total outstanding debt of the region reached VND 363,996 billion, an increase of 8.26% compared to the end of 2023. By the end of January 2025, the total outstanding debt of credit institutions in Region 13 reached VND 364,357 billion, an increase of 0.1% ( while the growth rate of the Mekong Delta and the whole country was -0.18% and 0.63%, respectively) . The bad debt ratio is 1.98%. It is estimated that by the end of February 2025, the outstanding debt of credit institutions in Region 13 will reach VND 368,986 billion, an increase of 1.4% compared to the end of 2024. This increase is significantly higher than that of the Mekong Delta (0.53%) and the whole country (0.8%).

Of which, the Social Policy Bank implemented 23 policy credit programs, with outstanding loans reaching over VND 20,531 billion for poor households, near-poor households, ethnic minority households and mountainous areas.

Governor of the State Bank of Vietnam Nguyen Thi Hong emphasized that in order to promote credit growth in the region, in the coming time, the State Bank of Vietnam will continue to synchronously implement solutions on monetary and credit policy management, focusing on directing credit institutions in the area to: Closely follow policies, resolutions, and socio-economic development programs of the locality; deploy solutions to stabilize mobilization interest rates and reduce costs, and increase the application of information technology to lower lending interest rates.

At the same time, promote credit growth from the beginning of the year, direct credit to production and business sectors, priority sectors, and growth drivers; strictly control credit for sectors with potential risks; develop credit products for sectors and fields in line with the business strategy and resource balancing capacity of credit institutions; promote credit investment in feasible key projects and works serving the socio-economic development of the region and the sectors and fields of local strengths according to the orientations in Resolutions 13-NQ/TW of the Politburo, Resolution No. 78/NQ-CP of the Government, promptly meet the loan capital needs of people, enterprises producing, processing, purchasing, storing, and consuming a number of key export products, ensuring food security of the region and the country.

In addition, effectively implement credit programs and policies under the direction of the Government and the Prime Minister, especially specific programs for the Mekong Delta region such as the Loan Program for linking production, processing and consumption of high-quality and low-emission rice products in the Mekong Delta region according to Decision 1490/QD-TTg of the Prime Minister; develop diverse bank credit products suitable for each type and production and business needs of people and enterprises.

In particular, administrative reform to facilitate people and businesses to access bank credit capital; resolutely implement solutions to improve credit quality, prevent and minimize bad debt; proactively deploy and enhance bank-business connection activities in appropriate forms; promote policy communication to help businesses and people grasp and access banking products and services conveniently.

In addition to the above solutions, the Banking sector needs the coordination of relevant departments, branches and associations in the Region to deploy effective and synchronous solutions and policies to help people and businesses in the Region stabilize production and business, develop sustainable socio-economic development, contributing to the implementation of growth targets set by the Government and localities.

At the Conference, delegates focused on exchanging and discussing a number of main contents such as: Results of general credit activities nationwide and credit in region 13 in the first months of 2025, including credit for priority areas, a number of credit programs; lending interest rate policy; the ability to effectively expand credit in 2025 to contribute to promoting sustainable economic growth; difficulties and obstacles; orientations on credit activities in the coming time...

Huu Chung