NDO - On March 11, in Viet Tri City (Phu Tho province), the State Bank of Vietnam held a conference to promote banking credit to contribute to economic growth in Region 4 (including the provinces of Phu Tho, Vinh Phuc, Ha Giang, Tuyen Quang, Lao Cai, Yen Bai).
Speaking at the opening of the Conference, Deputy Governor of the State Bank of Vietnam Dao Minh Tu affirmed: The provinces in Region 4 have important geographical locations, with Lao Cai and Ha Giang bordering China to the north; Vinh Phuc and Phu Tho bordering Hanoi to the south; and Lai Chau and Son La provinces to the west, and Cao Bang, Bac Kan and Thai Nguyen to the east. This region plays an important role in trade and connecting the northern mountainous regions with other provinces in the country, as well as creating a bridge for international trade through border gates with China.
According to Deputy Governor Dao Minh Tu, in order to contribute to achieving the minimum economic growth target of 8% set by the Government, in 2025, the State Bank has set a target of 16% national credit growth (ie an increase of 2.5 million billion VND). “For region 04, with this general growth rate, the credit scale needs to increase by nearly 71 trillion VND. This is a challenge that requires the efforts of the entire banking industry, cooperation from customers, businesses and support from the political system in general, especially the attention of localities,” the Deputy Governor emphasized.
Reporting at the Conference, Acting Director of the State Bank of Region 4 Truong Thu Hoa said that in recent times, the banking sector has implemented many solutions to promote credit growth to meet the capital needs for production and business of people and enterprises, and to contribute resources to perfecting the infrastructure for socio-economic development of the Region.
Accordingly, implementing the direction of the State Bank on stabilizing interest rates to support customers, the State Bank branches have closely followed the interest rate situation of credit institutions in the area: Savings deposit interest rates at the end of 2024 fluctuated by 0.1% - 1.5% compared to the beginning of the year for deposits with terms of 1 month to 12 months, but began to decrease in the first 2 months of 2025. Short-term lending interest rates for priority sectors according to current regulations are not more than 4%/year at commercial bank branches and not more than 5%/year at People's Credit Funds. Short-term lending interest rates for normal production and business (not in priority sectors) are commonly from 6.0% - 9.5%/year. Medium and long-term lending interest rates are from 5.0% / year - 13.4% / year; Consumer loans are at a minimum of 5.0%/year and at a maximum of 13.4%/year (down 0.2% to 3%) compared to December 31, 2023.
Capital mobilization as of January 31, 2025 reached nearly VND 387 trillion, an increase of 0.3% compared to the end of 2024. By January 2025, outstanding credit in the region reached about VND 442,515 billion, an increase of 0.28% compared to December 31, 2024 (the whole country increased by 0.63%); accounting for 40.75% of the total outstanding debt of the Northern Midlands and Mountains region, accounting for about 2.83% of the total outstanding debt of the economy.
Of which, Vinh Phuc and Phu Tho have the largest credit balance (144 trillion VND and 116 trillion VND respectively), accounting for nearly 60% of the outstanding balance of Region 04. Outstanding credit for the agriculture, forestry and fishery sector reached nearly 58 trillion VND, accounting for 13%; Credit for the industry and construction sector reached more than 112 trillion VND, accounting for 26% of the total outstanding balance of the region; Credit for the trade and service sector reached more than 270 trillion VND, accounting for more than 61% of the total outstanding credit of the region. The bad debt ratio accounted for 0.75%.
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Permanent Deputy Governor of the State Bank Dao Minh Tu gave a speech at the Conference. |
Credit structure continues to focus on priority areas under the direction of the Government, the Prime Minister and credit programs to promote the potential strengths of localities. Specifically: Lending for agricultural and rural development with outstanding loans reaching over 181 trillion VND, accounting for over 41% of total outstanding loans; Lending for small and medium enterprises reaching over 78 trillion VND, accounting for 18% of outstanding loans; Export loans reaching over 12 trillion VND, accounting for nearly 3% of outstanding loans; Lending to support social housing under Resolution 33 of the Government reaching 162.7 billion VND.
In 2024, there were 52 meetings and dialogues between banks and businesses held in area 04. Through the program, credit institutions lent about 89 trillion VND to 2,708 businesses and 526 other subjects; restructured debt repayment terms for 33 customers with outstanding debt of about 589 billion VND; in addition, credit institutions also provided support in other forms such as reducing interest, fees, etc.
At the Conference, representatives of enterprises in 6 provinces of Region 4 made recommendations to banks as well as the State Bank, mainly proposing to reduce lending interest rates even lower, simplify lending procedures (such as processing documents; procedures, time and costs of asset appraisal...) to create more favorable conditions for enterprises in accessing capital.
According to the representative of the State Bank, in order to promote credit growth in the region, in the coming time, the State Bank will continue to closely follow the direction and socio-economic programs of localities in the region, synchronously implement solutions on monetary and credit policy management, focusing on directing credit institutions to deploy solutions to reduce deposit and lending interest rates; promote credit growth from the beginning of the year, direct credit to production and business sectors, priority sectors, growth drivers; strictly control credit for potentially risky sectors; build credit products for sectors and fields in line with the business strategy and resource balancing ability of credit institutions; focus on credit investment in key projects and works, green credit, credit serving the development of strong sectors of the region and locality; Strengthen administrative reform, create favorable conditions for people and businesses to access bank credit capital; Continue digital transformation, provide technology products in both credit and payment; promote consumer credit and strengthen policy communication.
Source: https://nhandan.vn/tin-dung-ho-tro-tang-truong-kinh-te-khu-vuc-4-post864462.html
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