Credit growth improves at the beginning of the year

Conference on Promoting bank credit, contributing to regional economic growth by the State Bank of Vietnam (SBV) - Photo: VGP/HT

This is the information shared by Deputy Governor of the State Bank of Vietnam Pham Thanh Ha at the Conference on Promoting Bank Credit, Contributing to Regional Economic Growth organized by the State Bank of Vietnam (SBV) on the afternoon of March 21 in Hai Phong.

Higher than average growth

Credit of provinces in region 6 in 2024 is higher than the national average (some provinces have the highest credit growth rate in the country such as Hai Phong 24.67%, Hung Yen 18.24%); in early 2025, credit continued to show signs of improvement compared to the same period in 2024.

Up to now, the business activities of the State Bank of Vietnam, Region 6 branch have been deployed smoothly, the connection between the branch's headquarters in Hai Phong city and the "satellites" in the remaining 4 provinces has been smooth and continuous without interruption; cash supply activities, processing of business transactions on digital platforms and management, inspection and supervision of credit institutions in the area have all been smooth, without any problems compared to the time before the State Bank of Vietnam, Region 6 branch was established.

Deputy Governor of the State Bank of Vietnam Pham Thanh Ha emphasized the importance of credit growth to meet the capital needs of the economy. He said that the State Bank of Vietnam has assigned a target of increasing system-wide credit to 16% by the end of 2024, and at the same time requested credit institutions (CIs) to deploy focused credit solutions, review processes, and digital transformation to facilitate access to capital.

Banking industry leaders requested to keep deposit and lending interest rates stable, and called on credit institutions to seriously implement the direction of the Government and the State Bank.

"Reducing lending interest rates will support businesses and people in accessing capital at lower costs, thereby promoting production and business," the Deputy Governor emphasized.

In addition to the banking sector's solutions, Deputy Governor Pham Thanh Ha also suggested: It is necessary to have coordination between relevant Departments, Boards, Branches, Associations and Unions in the region to deploy effective and synchronous solutions and policies that will help people and businesses in the region stabilize production and business, develop sustainable socio-economy, and contribute to achieving the economic growth target set by the Government and localities.

Mr. Nguyen Duc Tho, Vice Chairman of Hai Phong City, highly appreciated the role of the banking sector in promoting local economic growth. Hai Phong City leaders said that in 2024, Hai Phong's economic scale will grow by over 11%, thanks to the great contribution of banks. Vice Chairman Nguyen Duc Tho requested the State Bank and regional banks in region 6 to continue to accompany localities in developing the financial system, ensuring liquidity, and supporting large investment projects.

"Enterprises, investors and banks share difficulties, especially in accessing credit capital, to jointly develop the regional socio-economy," Hai Phong City leaders called for.

Ms. Nguyen Thi Dung - Acting Director of the State Bank of Vietnam, Region 6, said that the total outstanding loans to economic sectors as of January 31, 2025 reached VND 841,342 billion, equivalent to 5.8% of the total outstanding loans nationwide, an increase of VND 8,159 billion compared to December 31, 2024, equivalent to an increase of 0.97%. Of which, Hai Phong and Quang Ninh have the largest credit balance (VND 261 trillion and VND 202 trillion, respectively), accounting for nearly 60% of the outstanding loans of Region 6.

Banks deploy many credit solutions to accompany businesses

At the conference, leaders of banks, businesses and local authorities discussed solutions to promote credit growth and support businesses and people to access capital. Opinions focused on reducing interest rates, enhancing digital transformation, and promoting specific credit programs to develop a sustainable economy. Deputy Governor Pham Thanh Ha asked leaders of relevant banks to immediately answer businesses' concerns.

Mr. Le Duy Hai, Deputy General Director of VietinBank, spoke at the Conference - Photo: VGP/HT

From the perspective of commercial banks, Mr. Le Duy Hai, Deputy General Director of VietinBank, shared about the bank's efforts in digital transformation and supporting businesses. Mr. Hai said that VietinBank has invested about VND 5,000 billion in technology from the end of 2023 to the beginning of 2024, to improve operational efficiency and meet customer needs.

VietinBank representatives also proposed a number of recommendations, including adjusting the risk coefficient for green credit, and enhancing security in online transactions.

Digital transformation not only helps banks operate more efficiently but also facilitates customers' access to financial services.

Mr. Tran Manh Hung, Director of Vietcombank Hai Phong, shared that Vietcombank Hai Phong branch achieved a credit growth rate of 25% in 2024, with total outstanding loans reaching 4,100 billion VND. Mr. Tran Manh Hung emphasized the importance of connecting banks with businesses, especially in solving capital difficulties.

Mr. Tran Manh Hung, Director of Vietcombank Hai Phong, spoke at the Conference - Photo: VGP/HT

Vietcombank representatives also shared about preferential credit programs that Vietcombank is implementing, including social housing loans, renovation of old apartments, and interest rate support for small and medium enterprises. Mr. Hung called on businesses to proactively approach these policies to take advantage of development opportunities.

Referring to the importance of green credit, Mr. Nguyen Manh Tuong, Director of Agribank Thai Binh, shared about the credit programs that Agribank is implementing, especially in the agricultural sector.

Mr. Nguyen Manh Tuong said that Agribank has supported many clean agricultural projects and invested in clean water plants, helping people access safe water sources.

Agribank representatives also requested the State Bank to increase interest rate support for green credit projects, and called on localities to closely coordinate with banks in providing asset information and minimizing legal risks.

"Developing green credit not only helps protect the environment but also promotes sustainable economy," said Mr. Nguyen Manh Tuong.

Mr. Nguyen Van Thanh, Director of MB Thai Binh, shared about the solutions to support small and medium enterprises that the bank is implementing. Supporting small and medium enterprises is one of the key factors to promote local economic growth.

MB representative said: The bank has provided preferential interest rate packages and financial support to businesses in the cotton and yarn sector, helping them expand market share and enhance competitiveness.

"The State Bank should continue to support businesses in accessing derivative products, helping them manage risks more effectively," Mr. Nguyen Van Thanh also suggested.

From a policy perspective, Mr. Nguyen Xuan Bac, Deputy Director of the Department of Credit for Economic Sectors (SBV), shares the same view on the importance of green credit, especially in the context of climate change.

Mr. Nguyen Xuan Bac said that the State Bank has issued Circular 17 guiding the implementation of environmental risk management in credit granting activities of credit institutions, to guide credit institutions to carefully consider environmental risk factors when granting credit. Mr. Bac also proposed increasing access to preferential capital from international financial institutions for green investment projects, which have high costs and long payback periods. Credit institutions need to actively participate in these projects to contribute to sustainable economic development.

Regarding interest rates, Ms. Nguyen Linh Phuong, Deputy Director of the Monetary Policy Department (SBV), said: The SBV is implementing many policies to support businesses and people. The SBV has reduced interest rates 4 times in 2023 and will continue to maintain stable interest rates in 2024.

Ms. Nguyen Linh Phuong also mentioned the implementation of derivative products to help businesses hedge risks in the context of market fluctuations.

"Reducing interest rates and supporting businesses in accessing capital are important solutions to promote economic growth," said Ms. Nguyen Linh Phuong.

Huy Thang