Mr. Ho Nam Tien, General Director of Loc Phat Vietnam Joint Stock Commercial Bank (LPBank) spoke at the Conference.
To achieve the above results, in 2024, LPBank has deployed many synchronous and drastic solutions. The bank has promoted the development of retail credit in rural, remote and isolated areas through a network of 566 branches/transaction offices in 63 provinces and cities. In addition, LPBank has also accelerated comprehensive digital transformation, effectively supporting credit approval, helping to shorten the time to provide services to customers. Thanks to the application of strict credit and risk management according to a modern, safe and effective management model, LPBank has been able to control credit quality well, preventing new bad debts from arising. Currently, the bank's bad debt ratio is only 1.7%, among the banks with the lowest bad debt ratio in the system. "LPBank's goal is to bring the bad debt ratio below 1.0% by the end of this year," said Mr. Ho Nam Tien, General Director of LPBank at the Conference. In 2024, Loc Phat Vietnam Bank also continuously launched many optimal solution packages to support businesses and people. Implementing the Government's direction on implementing a credit program of 120 trillion VND for social housing loans and consumer loans, LPBank has deployed many credit packages with preferential interest rates. In the first 8 months of 2024, LPBank reduced interest rates for more than 150,000 customers, with a reduction of up to 3.5% compared to the beginning of the year, equivalent to a total outstanding loan with reduced interest rates of more than 100,000 billion VND.
Prime Minister Pham Minh Chinh and Chairman of Loc Phat Vietnam Commercial Joint Stock Bank (LPBank) Nguyen Duc Thuy had an open exchange on the sidelines of the Government Standing Committee Conference.
In addition, there are also preferential loan programs with fixed interest rates for corporate customers borrowing short-term production and business capital, import-export customers with a scale of 9,000 billion VND, ... with preferential loan interest rates from only 6.5%/year. The current results have nearly 900 customers benefiting from this Program. It can be said that the above preferential programs greatly support individual and corporate customers, and have truly spread strongly across the country, contributing to the restoration of production and business and promoting local economic development nationwide. Green bank for sustainable development Closely following the Prime Minister's direction on removing difficulties and obstacles in mechanisms and policies to maximize resource mobilization for development, the leaders of Loc Phat Bank Vietnam have made a number of proposals. Firstly , LPBank recommends that the Government, the State Bank and ministries and branches issue specific documents and guidelines on Carbon Credits and specific benefits for customers when participating in Green Credit. Currently, LPBank is a pioneer bank in promoting green credit growth in the system. The bank has implemented a credit package specifically for this field with a limit of more than VND 15,600 billion to support and encourage customers to aim for sustainable development for the community and society. Of which, VND 9,600 billion is for Green Energy projects and VND 6,000 billion for Green Agriculture projects.
Representatives of Joint Stock Commercial Banks took a photo with Prime Minister Pham Minh Chinh at the Conference.
With a network spanning 63 provinces and cities across the country, mainly concentrated in rural, remote and isolated areas, LPBank's green credit balance growth by the end of the third quarter of 2023 reached an impressive VND 2,863 billion, of which clean agriculture and high-tech agriculture accounted for VND 2,857 billion. LPBank representative shared: "Climate change is one of the main causes of increased frequency and intensity of storms like Yagi. Therefore, we will continue to promote and prioritize green credit in the coming time to contribute to reducing greenhouse gas emissions, protecting the natural environment and creating conditions for sustainable economic and social development for the country". LPBank's prioritization of green credit is in line with the direction of the Prime Minister and the State Bank on shifting capital flows for green credit loans, promoting sustainable development. This is also the area that the Party and the State have oriented to develop to become an agricultural production area with effective and sustainable growth, meeting the trend of international integration, adapting to climate change and increasing added value. However, Mr. Ho Nam Tien, General Director of LPBank, said: "Regulations on green credit lending policies and benefits for customers in the green sector are still unclear, causing difficulties in expanding and developing customer segments." Therefore, Vietnam needs to soon have mechanisms and policies to encourage businesses to make green transformation, creating conditions for them to participate in the capital market, issue green bonds, enjoy tax incentives and green credit insurance. Second , for individuals, households and businesses affected by the recent storm No. 3, LPBank proposes additional support policies such as restructuring debt repayment periods, supporting interest rate reduction to help them quickly overcome the consequences after the storm, quickly stabilize their lives and production and business activities. Third, it is necessary to consider continuing to extend Circular 02/2023 on restructuring debt repayment terms and maintaining debt groups, and adding customers affected by storm No. 3 to the list of supported customers. Recently, LPBank has urgently implemented programs to reduce loan interest rates from 0.5% to a maximum of 2% for customers affected by storm No. 3. The program has a debt scale of up to 29,700 billion VND for more than 63,200 customers in areas and localities affected by storms and floods, while applying appropriate debt restructuring and debt extension solutions. "Although there are many challenges ahead, with close guidance and practical solutions from the Government, ministries, branches and the State Bank, LPBank believes that Vietnam's economy will continue to have high and sustainable growth in the coming time." - LPBank's General Director affirmed./.K.Oanh
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