Banks - Enterprises: Working together to accelerate development

The conference was co-chaired by Deputy Governor of the State Bank of Vietnam Pham Quang Dung and Mr. Nguyen Van Thi, Member of the Provincial Party Standing Committee, Permanent Vice Chairman of the Thanh Hoa Provincial People's Committee.

Efforts to solve capital problems for businesses

The four provinces in Region 7 (Nam Dinh, Ha Nam, Ninh Binh and Thanh Hoa) belong to the North Central region and the Red River Delta, part of the North-South economic corridor, strategically located on an important traffic axis connecting the North and the Central region, facilitating trade and economic development. This is an area with great potential to boost bank credit.

Reporting at the Conference, Director of the State Bank of Vietnam, Region 7 Branch, Tran The Hung, said that by the end of March 2025, outstanding loans of credit institutions in Region 7 were estimated at more than VND 561,000 billion, an increase of about 1.2% compared to the end of 2024, accounting for about 3.5% of outstanding credit nationwide. In particular, by economic sector, credit for agriculture, forestry and fishery reached VND 54,170 billion, an increase of about 0.23%; industry and construction reached VND 167,628 billion, an increase of about 3.73%; trade and service sector reached VND 334,432 billion, a decrease of about 1.3% compared to the end of 2024.

In recent times, the banking sector in Region 7 has made great efforts and actively resolved difficulties and obstacles to promote credit activities to serve businesses and people. However, Mr. Tran The Hung said that there are still certain difficulties. In particular, some credit programs have achieved low results, not as expected. The pressure on capital supply of the credit institution system for the economy is still large, including medium and long-term capital in the context of capital mobilization from the corporate bond market and the stock market still facing many difficulties. Some enterprises have financial capacity and cash flow difficulties; increased inventories; limited management and operation capacity; weak competitiveness; difficulties in finding partners and orders; lack of feasible business plans; not meeting credit conditions... so it is difficult to access bank credit capital.

Director of State Bank Region 7 Tran The Hung

Regarding the direction of credit activities in the area in the coming time, Mr. Tran The Hung said that the regional branches of the State Bank of Vietnam will continue to well implement the direction of the State Bank of Vietnam; resolutely, strongly and effectively implement solutions to create favorable conditions for businesses and people to access credit capital; further strengthen the connection between banks and businesses...

At the same time, the Regional State Bank will direct local credit institutions to diversify credit programs and products to suit the needs of each target group and customer segment; at the same time, deploy solutions for safe, effective, and substantial credit growth, directing credit to production and business sectors, priority sectors, and growth drivers.

In addition to self-solutions, the representative of the State Bank of Region 7 also requested the Government to direct relevant ministries and branches to have policies to encourage increased domestic consumption, support export activities, support businesses in finding markets and orders to generate revenue, and improve the financial situation of businesses. It is requested that leaders of Party committees, People's Committees and Departments and branches in the region continue to pay attention to directing, coordinating, and creating favorable conditions for the operations of the State Bank of Region 7 in particular and the banking sector in the 4 provinces in general. Enhance the operational efficiency of the SME Credit Guarantee Fund and the Provincial Development Investment Fund to increase access to bank capital for small and medium enterprises in the area.

Speaking at the Conference, representatives of associations and many businesses in the area highly appreciated the role of credit capital, and at the same time reflected on a number of difficulties, especially related to collateral, and wished to access credit packages with appropriate preferential interest rates to develop production and business.

“The sugar industry is facing many challenges, from price fluctuations, climate change to increasing production costs. Therefore, the role of the banking system in providing financial support to businesses and farmers is extremely important. To have more resources to support production and business activities, we would like to make recommendations to the State Bank and commercial banks such as supporting preferential loans for farmers and businesses in the supply chain, through implementing more preferential credit packages, simplifying loan procedures and expanding the form of mortgage by product consumption contracts between businesses and farmers. In addition, there should be a flexible financial support mechanism according to the season because the sugar industry has a clear cycle, often requiring large capital at the beginning of the season to invest in fertilizers, sugarcane varieties, care and harvesting. In addition, strengthening specific, long-term credit programs to support businesses in investing in mechanization, developing sustainable raw material areas, deep processing, investing in infrastructure infrastructure and production expansion. Close cooperation between enterprises, farmers and banks is a key factor to improve the competitiveness of the sugar industry", Mr. Le Van Phuong - General Director of Lam Son Sugar Joint Stock Company shared at the Conference.

Also at the Conference, representatives of many credit institutions and branches in the area reported on the current operating situation and made recommendations to the State Bank of Vietnam Region 7, local authorities and the State Bank regarding some specific difficulties and problems to support credit promotion, contributing to promoting economic growth in the coming time.

Speaking at the Conference, Ms. Ha Lan Anh, Vice Chairman of Nam Dinh Provincial People's Committee and Mr. Nguyen Van Thi, Permanent Vice Chairman of Thanh Hoa Provincial People's Committee both acknowledged and highly appreciated the efforts of the Banking Industry in recent times, which have made positive contributions to the local socio-economic development.

Provincial leaders also hope that the banking sector in general and the State Bank of Vietnam Region 7 in particular will continue to support and make positive contributions to localities in their efforts to achieve very high GRDP growth targets this year.

However, in the context of many challenges, to achieve the national credit growth target of 16% in 2025 (outstanding loans increased by VND 2.5 million billion compared to 2024) contributing to achieving the national economic growth targets (at least 8%) and GRDP growth of 4 provinces in the Region (from 10.5% -12%) requires the entire banking industry in general and in Region 7 in particular to resolutely implement many solutions. This is a challenge that requires the efforts of the entire banking industry, cooperation from customers, businesses, support and facilitation from the entire political system, and attention from local authorities.

Three “Houses” join forces to promote growth

Deputy Governor Pham Quang Dung, in his concluding remarks, provided further information on the relevant solutions that the banking sector has been implementing and will continue to implement to facilitate people and businesses in credit relations, such as: Regularly paying attention to, perfecting and supplementing credit mechanisms and policies; Operating monetary policy tools to stabilize the monetary market, stabilize the macro economy, control inflation, thereby creating a favorable environment for production and business activities of enterprises; Flexibly and innovatively managing credit growth, creating initiative for credit institutions in credit activities; Continuing to implement measures to reduce lending interest rates to remove difficulties for customers, support people and businesses in developing production and business; Actively promoting the implementation of credit programs and policies for a number of industries and sectors under the direction of the Government and the Prime Minister; directing credit to priority sectors and growth drivers.

Deputy Governor Pham Quang Dung speaks at the Conference

At the same time, based on the practical opinions from the speeches, the Deputy Governor gave specific instructions and directions to the State Bank of Vietnam Region 7 and to credit institutions in the area.

Regarding credit institutions, the Deputy Governor proposed implementing solutions to increase credit growth safely and effectively, balance capital sources, meet credit needs for the economy, direct credit to production and business sectors, priority sectors and economic growth drivers according to the direction of the Government, the Prime Minister and to the strengths of each locality; at the same time, strictly control credit in sectors with potential risks.

Along with that, promote the implementation of credit policy programs under the direction of the Government and the Prime Minister such as social housing loan programs, credit programs for the forestry and fishery sectors, etc. Continue to implement solutions to facilitate customers' access to credit capital on the basis of reviewing and simplifying loan application procedures while complying with legal regulations. Simplifying and facilitating does not mean loosening credit conditions.

The Deputy Governor also requested the organization to strictly follow the direction of the Government and the Prime Minister on measures to continue to reduce operating costs, increase the application of information technology, simplify procedures, restructure the organizational apparatus, enhance social responsibility, and be willing to share part of the profits to reduce lending interest rates.

For the State Bank of Region 7, the Deputy Governor directed to continue to orient credit institutions in the area to focus on production and business sectors, priority sectors. At the same time, to do a good job of advising local Party committees and authorities on credit work to serve the construction and socio-economic development in the area in the spirit of closely following the resolutions and socio-economic development plans of the provinces in the area.

Actively coordinate with relevant departments, agencies and sectors to regularly work with Associations, banks, industry associations, enterprises, organizations and individuals in the area to grasp and assess the current situation of production and business, difficulties and obstacles to promptly have solutions to remove them, creating favorable conditions for enterprises and people in the area. Direct credit institutions in the area to resolutely implement solutions to improve application quality, prevent and limit bad debts and actively handle bad debt recovery.

In addition to the solutions of the banking sector, the State Bank also hopes to receive attention and continue to coordinate and synchronously implement solutions from the Provincial People's Committees, departments, branches, and business associations in the area to further improve the efficiency of credit work, contributing to supporting economic growth.

With the spirit of accompanying and sharing with people and businesses, the Banking sector is ready to deploy solutions to remove difficulties and meet capital needs for economic development in the provinces of Region 7, especially capital needs to exploit the potentials, strengths, and key projects of the region.

The Deputy Governor believes that with the solutions of the Banking sector and the close leadership and direction of the Provincial Party Committee, People's Committee, People's Council, together with the Departments, branches, sectors, and associations, it will help people and businesses of Region 7 develop production and business, actively contribute to the socio-economic development of the locality as well as contribute to the implementation of the economic growth target set by the Government.

Source: https://thoibaonganhang.vn/ngan-hang-doanh-nghiep-cung-nhip-de-tang-toc-phat-trien-162300.html