Promoting credit for the development of the "Northwest Sub-region"

Credit focuses on developing local strengths

Speaking at the opening of the Conference, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said that 2025 is a year of special importance. The Government has set many key goals and solutions, including setting a growth target of at least 8% nationwide in 2025 and striving for double digits in more favorable conditions. To achieve that goal, in Resolution 25/NQ-CP dated February 5, 2025, the Government assigned specific GRDP growth targets to each province and city, of which the provinces in region 03 achieved from 8-10.5%. At the same time, the Government has resolutely implemented Resolution 18-NQ/TW of the Central Executive Committee on restructuring and streamlining the apparatus, avoiding work interruptions.

Deputy Governor of the State Bank of Vietnam Pham Thanh Ha speaks at the Conference

Realizing that bank credit capital is one of the important resources supporting investment, production and business of society, contributing to the realization of growth targets, in recent times, the State Bank has synchronously implemented solutions to create favorable conditions, increase access to credit to serve production, business and consumption of people and enterprises.

In addition, recently, implementing the policies and directions of the Politburo, the Secretariat, the Government and the Prime Minister, the State Bank of Vietnam has completed the restructuring and streamlining of its organizational structure. Accordingly, the State Bank has completed the establishment of State Bank branches in 15 regions from March 1, 2025 on the basis of restructuring 63 State Bank branches in provinces and cities.

For Region 3, including 4 provinces (Hoa Binh, Son La, Dien Bien, Lai Chau), of which 3 provinces are planned to belong to the Northwest Sub-region of the Northern Midlands and Mountains and belong to the economic corridor planning of Dien Bien - Son La - Hoa Binh - Hanoi with many advantages in developing agriculture and forestry, processing industry, clean energy industry, tourism, in which Son La is identified as the growth pole of the sub-region.

Mr. Trinh Cong Van - Acting Director of State Bank Region 3 said that in recent years, the overall economic picture of the Northwest region has improved a lot.

In recent times, the banking system in the region has made efforts to mobilize capital to provide capital for production and business, participating in resources for infrastructure development in the region and has achieved quite positive results.

Specifically, the network has the presence of 27 credit institutions with 668 transaction points in communes covering all districts, cities, remote areas; outstanding loans reached nearly 135 trillion VND, accounting for 18.4% of the total outstanding loans of the Northern Midlands and Mountains; credit resources have been invested in sectors and fields that are typical strengths of the region: such as agricultural and rural loans (accounting for more than 37% of outstanding loans in the region), SME loans (accounting for 27% of outstanding loans in the region). In addition, the policy credit programs of the social policy bank (accounting for 16% of outstanding loans in the region) have helped poor households, ethnic minorities and mountainous areas and other policy beneficiaries access preferential credit capital from the state, to develop production, business, and escape poverty sustainably.

To contribute to achieving the minimum economic growth target of 8% set by the Government in 2025, the State Bank of Vietnam has set a national credit growth target of 16%. According to the Deputy Governor, for sector 3, if the overall growth rate of the whole system is maintained, the sector needs to increase its credit scale by nearly VND 22 trillion. "This is a challenge that requires the efforts of the entire banking sector, cooperation from customers, businesses and support from localities," the Deputy Governor emphasized.

Reporting at the Conference, Mr. Trinh Cong Van - Acting Director of the State Bank of Vietnam Region 3 said that in recent years, the overall economic picture of the Northwest region has improved a lot. The overall economic growth rate of the region has increased over the years, and the socio-economic infrastructure, especially electricity, roads, schools, and stations, has been improved.

In the past time, the State Bank of Vietnam Region 3, based on the merger of the State Bank branches in 4 provinces: Son La, Dien Bien, Lai Chau and Hoa Binh, has made many efforts in serving the construction and socio-economic development in the 4 provinces. By the end of December 31, 2024, outstanding loans of credit institutions in the area reached VND 136,776 billion, an increase of 7.63% compared to 2023; bad debt ratio of 0.84%. By February 28, 2025, outstanding loans reached VND 134,571 billion, a decrease of 1.61% compared to the end of 2024; bad debt ratio of 0.87%. According to Mr. Trinh Cong Van, outstanding credit balance in early 2025 decreased sharply, the reason is related to the seasonal nature and characteristics of credit before and after the traditional Lunar New Year, which often fluctuates strongly because loans during this period are mainly short-term, along with the economy's low capital absorption capacity...

In addition, in recent years, credit institutions have promoted lending to local strengths such as hydropower, agriculture, tourism, etc., prioritizing lending capital to policy beneficiaries to contribute to promoting socio-economic development, hunger eradication, poverty reduction, and improving the lives of local people. In particular, the State Bank of Vietnam in the provinces continues to effectively implement the Bank - Enterprise Connection Program in appropriate forms, promptly removing difficulties and obstacles for people and enterprises in credit relations with banks. Through the program, credit institutions have lent VND 20,500 billion to 1,165 enterprises and 1,699 other customers...

Ready to meet the credit capital needs for regional economic development

At the conference, leaders of the provinces in the region accompanied and supported localities in socio-economic development. Comrade Nguyen Dinh Viet, Deputy Secretary of the Provincial Party Committee, Chairman of the People's Committee of Son La province, Head of the National Assembly Delegation of the XVth term of Son La province proposed that in the coming time, with unforeseen difficulties and challenges, as well as many advantages, the leaders of Son La province proposed that the State Bank of Region 3 will direct credit institutions to focus credit on priority areas, which are local strengths, while ensuring credit quality. In addition, actively reduce operating costs, thereby reducing lending interest rates to support people and businesses.

Comrade Giang A Tinh, Member of the Provincial Party Standing Committee, Vice Chairman of Lai Chau Provincial People's Committee, said that Lai Chau has great potential for socio-economic development, so he hopes that banks will accompany the province to develop the local economy. In return, the local government will also accompany banks, providing figures, data and other conditions for banks to be more bold in lending and proactively seek out businesses.

Concluding the Conference, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha suggested that in the coming time, the State Bank of Vietnam Region 3 must demonstrate its role as a representative in all 4 provinces, not just the State Bank in Son La province, performing the function of the State Bank of Vietnam Region to advise local Party committees and authorities in implementing monetary and banking credit activities, effectively implementing credit policies and programs according to the policies of the Government and the Prime Minister, contributing to the socio-economic development of the locality.

At the same time, promote the implementation of tasks and solutions in Directive 01/CT-NHNN on organizing the implementation of key tasks of the industry in 2025, Directive 02/CT-NHNN on promoting digital transformation and ensuring information security and safety in banking activities and other directives of the State Bank.

Comrade Pham Thanh Ha - Deputy Governor of the State Bank of Vietnam and Comrade Nguyen Dinh Viet, Deputy Secretary of the Provincial Party Committee, Chairman of the People's Committee of Son La province, Head of the National Assembly Delegation of the 15th term of Son La province co-chaired the Conference.

“With the spirit of accompanying and sharing with people and businesses, the banking sector is ready to implement solutions to remove difficulties and meet the demand for credit capital for economic development in the provinces of Region 3. We hope that with the solutions of the banking sector and the close leadership and direction of the Provincial Party Committee, People's Committee, and People's Council, it will help people and businesses in the Region stabilize production and business, develop sustainable socio-economic development, contributing to the implementation of the set economic growth target,” Deputy Governor Pham Thanh Ha emphasized.

For credit institutions with headquarters and branches in the area, the Deputy Governor requested that they resolutely implement credit growth solutions that are correct and on target right from the beginning of the year, promptly meeting the credit capital needs of the economy; Focus on credit investment in feasible key projects and works serving socio-economic development and key agricultural products such as forestry products, rice, vegetables and fruits. At the same time, seek support from localities and industry associations to develop credit in the area.

Credit institutions also need to focus on achieving credit growth targets but ensuring efficiency, compliance with legal regulations, ensuring system safety, limiting bad debt occurrence; regularly assessing bad debt, ensuring objectivity, honesty and accurately reflecting the credit quality of credit institutions; strictly complying with legal regulations related to urging and debt collection. In addition, continue to simplify credit granting processes and procedures, apply digital transformation to credit granting processes, minimize unnecessary expenses to create resources to reduce lending interest rates, support people and businesses; maintain a stable and reasonable mobilization interest rate level; continue to publish information on lending interest rates of credit packages, programs, and products on the electronic information page of credit institutions...

For businesses, cooperatives, and people who need to borrow capital, they need to proactively coordinate with credit institutions to grasp information and regulations of credit institutions, on that basis, transparent finances, cash flow, revenue, and income for credit institutions to appraise loans. When there are difficulties or problems, work directly with credit institutions to have appropriate and timely support solutions.

Source: https://thoibaonganhang.vn/day-manh-tin-dung-phat-trien-tieu-vung-tay-bac-161897.html