Additional 22 trillion VND in credit for Region 3

Nearly 135 trillion VND in outstanding credit

On March 26, 2025, in Son La, the State Bank of Vietnam held the Decision Announcement and launch of the State Bank Region 3 and the Conference on Promoting Bank Credit, contributing to promoting economic growth in this region.

State Bank Announces Decision and Launches State Bank Region 3. Photo: Duy Minh

Speaking at the conference, Deputy Governor of the State Bank Pham Thanh Ha said that Region 3 includes 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 midland and mountainous region: Hoa Binh, Son La, Dien Bien with many advantages in developing agriculture, forestry, processing industry, clean energy industry, tourism, in which Son La is identified as the growth pole of the sub-region. In addition, this region also has 2 provinces belonging to the Dien Bien - Son La - Hoa Binh - Hanoi economic corridor associated with the Northwest sub-region, connecting with Laos and ASEAN countries.

Deputy Governor Pham Thanh Ha said that in recent times, the banking sector has actively promoted credit growth to meet the capital needs for production and business of people and enterprises, contributing resources to complete the infrastructure for socio-economic development of the region and has achieved quite positive results.

Specifically, the network operates with 13 banks (38 level I branches, 39 level II branches), 12 People's Credit Funds and 1 microfinance organization, with 158 transaction offices, 668 transaction points in communes covering all districts, cities, remote areas.

The banking system in the region has done a good job of mobilizing capital to supply for production, business and consumption of people and enterprises with outstanding loans reaching nearly 135 trillion VND, accounting for 18.4% of the total outstanding loans of the Northern midland and mountainous region; focusing credit resources on industries and fields that are typical strengths of the region such as lending to agriculture and rural areas (accounting for more than 37% of outstanding loans in the region), lending to small and medium enterprises (accounting for 27% of outstanding loans in the region).

Deputy Governor Pham Thanh Ha speaks at the conference. Photo: Duy Minh

In addition, the policy credit programs of the Vietnam Bank for Social Policies (accounting for 16% of outstanding regional loans) have helped poor households and other policy beneficiaries access preferential credit capital from the state to develop production and business, and escape poverty sustainably.

“In addition to the achieved results, banking activities in the area still face many difficulties and challenges, with locally mobilized capital only meeting about 84% of the local credit capital demand. Credit growth by the end of 2024 will only reach 7.6% compared to the end of 2023 (lower than the growth rate of the Northern midlands and mountainous region of 14.4% and the whole country of 15.09%). There are still businesses and people reporting difficulties in production, business and access to bank credit capital” - the Deputy Governor acknowledged.

In that context, the State Bank's leaders affirmed that in order to achieve the credit growth target of 16% (outstanding loans increased by VND 2.5 million billion compared to 2024), contributing to achieving the economic growth targets of the whole country (at least 8%) and 4 provinces of the region (8 - 10.5%), the entire banking industry in general and in Region III in particular need to resolutely implement many solutions. In particular, in addition to balancing and ensuring credit "supply", it is necessary to closely coordinate with businesses and people to contribute to promoting the "demand" factor and promoting the connection between credit supply and demand, connecting banks and businesses to promptly grasp difficulties and problems and have appropriate solutions.

“Region III needs to increase its credit scale in 2025, possibly up to nearly VND22 trillion (while in 2024, Region III’s credit scale increased by VND9,600 billion). This is a challenge that requires the efforts of the entire banking industry, cooperation from customers, businesses and support from the political system,” Deputy Governor Pham Thanh Ha emphasized.

Conference on Promoting bank credit, contributing to promoting economic growth in Region 3. Photo: Duy Minh

More preferential credit for agricultural processing

Sharing at the conference, Ms. Chu Thi Kim Oanh - Director of BHL Son La Agricultural Products Processing Joint Stock Company - said that the business activities of enterprises cannot be separated from the companions of banks, capital providers and services for enterprises. For example, BHL, from the first days of project implementation, the enterprise chose VietinBank Son La as the unit to provide comprehensive banking services from project investment loans, working capital for production, guarantee services, money transfers, deposits, etc.

By 2025, the company aims to expand its market, diversify its products and increase value in the agricultural supply chain. To achieve these goals, the support and companionship of the banking system is very important. The company hopes that in the coming time, banks will continue to strengthen preferential credit support policies for agricultural processing enterprises, especially in the investment phase of expanding production and developing products; supporting trade finance channels to create more favorable conditions for export activities and developing international markets.

Meanwhile, Mr. Nguyen Ngoc Son - Permanent Vice President of Son La Business Association, Director of Quynh Ngoc Joint Stock Company - shared that although the economy is on the path of recovery and development, the business community, including businesses in Son La province, still faces difficulties and limitations; the majority of businesses in the province are small and micro-sized (accounting for nearly 97%), have low production and business capital, the proportion of businesses in industry groups is still unbalanced, mainly operating in the construction and service sectors, so they face many difficulties in accessing loans. Many businesses do not meet the requirements for collateral or are not eligible for loans, leading to limitations in expanding production and investment.

“The provincial business association and businesses hope that the banking sector will continue to promote its pioneering role, creating more suitable mechanisms and policies to help businesses overcome capital difficulties, especially cooperatives and small and medium enterprises,” said a representative of the Son La Business Association.

At the same time, Mr. Nguyen Ngoc Son also recommended that the State Bank encourage credit institutions to expand the form of mortgage loans based on future assets because currently very few banks apply this form of loan.

The opinions and recommendations of enterprises were answered by leaders of the State Bank of Vietnam and leaders of the State Bank Region 3. Photo: Duy Minh

Based on the recommendations of businesses at the conference, Deputy Governor Pham Thanh Ha requested the State Bank of Region 3 to perform well the function of state management of currency, credit and banking activities in the area according to the tasks assigned by the Governor of the State Bank of Vietnam; continue to direct branches of credit institutions in the area to provide credit to production and business sectors, priority sectors and economic growth drivers according to the direction of the Government and the Prime Minister; strictly control credit for potentially risky sectors; continue to actively implement solutions to remove difficulties for people and businesses; promptly meet the capital needs of people and businesses; actively participate and effectively and practically implement the program of connecting banks and businesses in appropriate forms.

In addition, the Deputy Governor requested credit institutions with headquarters and branches in the area to 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. In particular, focusing on credit investment in feasible key projects and works serving socio-economic development and key agricultural products (forestry products, rice, vegetables and fruits); taking advantage of the support of localities and industry associations to develop credit in the area.

State Bank Region 3 includes 4 provinces: Son La, Dien Bien, Lai Chau, Hoa Binh; headquarters is located in Son La province. Previously, the Governor of the State Bank issued decisions on personnel transfer and appointment in Region 3. Mr. Trinh Cong Van, Director of the State Bank branch in Son La province, holds the position of Deputy Director of the State Bank branch in Region 3 and is assigned the authority of Director of the State Bank branch in Region 3. The Deputy Directors include: Mr. Pham Manh Kien, Mr. Le Cao Cuong, Mr. Nguyen Dinh Vinh.

After the reorganization, the total number of civil servants and employees at the State Bank Region 3 is 140 people. The organizational structure of the State Bank Region 3 after the reorganization includes 6 departments: State Bank Regional Inspectorate; Management and Supervision Department; General Department; Administration - Personnel Department; Currency - Treasury Department; Accounting - Payment Department.

Thuy Linh

Source: https://congthuong.vn/them-22-nghin-ty-dong-tin-dung-cho-khu-vuc-3-380147.html