Credit growth slowed at the beginning of the year.

The economy 's weak capital absorption capacity has resulted in slow credit growth in Ha Tinh's banking system during the first few months of the year. As of February 15th, outstanding loans in the entire province reached VND 96,465 billion, an increase of only 0.43% compared to the end of 2023.

Customers conducting transactions at Vietcombank Ha Tinh branch.

Mr. Duong Quoc Khanh – Head of Corporate Customer Department (Vietcombank Ha Tinh ) said: “From the beginning of 2024, the branch has proactively implemented many solutions to increase credit growth such as: simplifying procedures and loan processing times; improving the efficiency of appraisal to lend to customers with feasible business plans; reducing lending interest rates to a low and stable level in the market. In addition, the unit has diversified credit packages to serve investment in production and business; ensuring living needs such as: buying houses, land, cars, consumer loans... However, due to the low credit demand of the economy in the first months of the year, the production and business activities of the business community and cooperatives are facing many difficulties and the demand for consumer loans from people has decreased, so the outstanding credit balance of Vietcombank Ha Tinh is slightly lower than at the beginning of the year.”

Accordingly, as of February 20, 2024, the total outstanding loan balance of Vietcombank Ha Tinh reached VND 14,958 billion, a decrease of VND 232 billion compared to the beginning of the year. Vietcombank Ha Tinh's strength lies in lending to businesses, so the branch will continue to monitor and listen to the opinions of the business community and cooperatives in the area to promptly identify difficulties and provide support solutions, creating momentum for businesses to boost investment in the new year.

In 2024, Agribank Ha Tinh II Branch aims for a minimum credit growth of 10% compared to the end of 2023. From the early months of the year, this bank has aggressively implemented many credit programs of the Agribank system, such as: preferential interest rate consumer loans for individual customers with a scale of 10,000 billion VND, short-term loans for individual customers to support production and business activities with a scale of 30,000 billion VND, preferential loans for small and medium-sized enterprises in 2024 with a scale of 10,000 billion VND... In addition, Agribank Ha Tinh II Branch also runs its own credit programs, typically the "Green Credit" package to support young people starting businesses...

According to Mr. Nguyen Thanh Quang, Head of Planning and Risk Management Department, Agribank Ha Tinh II Branch: The disruption of global supply chains due to the economic recession and the conflict between Russia and Ukraine has caused many businesses (especially export-oriented businesses) to face difficulties and challenges such as: increased production costs while prices remain unchanged, large inventories, etc., forcing businesses to reduce their scale of operations. In addition, due to the economic recession, people's shopping and consumption needs have decreased, leading to a decrease in loan demand. Accordingly, the outstanding loan balance of Agribank Ha Tinh II Branch as of February 21, 2024, reached VND 13,748 billion, a decrease of VND 65 billion compared to the beginning of the year.

The outstanding loan balance of Agribank Ha Tinh II Branch as of February 21, 2024 reached VND 13,748 billion.

According to reports, besides the "big players" like Vietcombank, Agribank, BIDV, and VietinBank, other joint-stock commercial banks in Ha Tinh province such as HDBank, Bac A Bank, ACB, and Techcombank are also facing difficulties in developing their loan portfolios.

According to data from the State Bank of Vietnam (SBV) branch in Ha Tinh province, as of February 15, 2024, outstanding loans in the entire province reached VND 96,465 billion, an increase of only 0.43% compared to the end of 2023.

According to experts, similar to the rest of the country, the slowdown in credit growth in Ha Tinh during the first few months of the year is a predictable pattern; typically, credit does not increase during the Lunar New Year period. Furthermore, the weak capital absorption capacity of the economy, the difficulties faced by businesses, and low consumer demand are fundamental reasons for the slow credit growth in the early months of the year.

Reportedly, in 2024, the banking sector in Ha Tinh province aims for a credit growth of 14% or more compared to the end of 2023; and a non-performing loan ratio of less than 2%. In the coming period, the State Bank of Vietnam's Ha Tinh branch will continue to direct credit institutions in the area to focus lending on production and business sectors, priority areas, and economic growth drivers in accordance with the Government's policies. Simultaneously, it will continue to implement solutions to facilitate customers' access to credit, simplify lending procedures, publicly and transparently list loan procedures and processes; and ensure safe and efficient credit operations.

In addition to the efforts of the banking sector, solutions from all levels and sectors are needed to alleviate difficulties for the business community.

In addition to the efforts of the banking sector, fundamental solutions from all levels and sectors are needed to remove obstacles and difficulties for the business community and cooperatives. Accordingly, it is necessary to create a transparent and favorable legal framework for business operations; promote solutions to support businesses in enhancing their competitiveness in the market and participating in global value chains; and implement solutions to stimulate domestic consumption... only then can effective credit growth be promoted.

Thao Hien

Source: https://baohatinh.vn/kinh-te/tin-dung-dau-nam-tang-truong-cham/262036.htm