Bank credit creates momentum to promote the economy of the "core" region of the Red River Delta

Banking – the “lifeblood” of the regional economy

Speaking at the opening of the Conference, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said that 2025 is a particularly important year, of key significance, creating a foundation for the country to enter a new era - an era of rising up, developing a rich, civilized, prosperous nation, so it is necessary to have breakthrough growth to reach the finish line.

For the banking sector, closely following the solutions and tasks of the National Assembly and the Government, the State Bank has specified goals and solutions for the entire system on currency, credit, restructuring, bad debt handling, inspection, supervision, administrative procedure reform, promoting e-commerce, digital transformation of banking activities, etc.

Deputy Governor of the State Bank of Vietnam Pham Thanh Ha attended and chaired the Conference.

Regarding credit work, to facilitate credit institutions, at the end of 2024, the State Bank announced and immediately assigned a credit growth target of about 16% in 2025 for credit institutions to proactively meet the capital needs of people, businesses, and the economy. At the same time, in the first 2 months of 2025, the State Bank issued 10 documents directing credit institutions to resolutely implement credit growth solutions that are correct and hit the target right from the beginning of the year; strengthen the review and simplification of credit granting processes and procedures; optimize the application of digital transformation to the credit granting process, creating favorable conditions for accessing bank credit capital. Thoroughly instruct credit institutions to strictly implement the direction of the Government, the Prime Minister, and the State Bank to stabilize deposit interest rates, contribute to stabilizing the monetary market, strive to reduce lending interest rates, etc.

The above solutions and management have initially achieved positive results. The Deputy Governor said that although according to the seasonal laws of each year and the Lunar New Year, credit at the beginning of the year often decreases, credit growth in early 2025 showed signs of improvement compared to the same period in 2024. Specifically, by March 12, 2025, credit increased by 1.24% compared to the end of 2024 (the same period in February 2024 decreased by 0.74%). However, there are still difficult challenges that need to be further resolved in the coming time.

In order to promptly grasp the credit situation and banking activities in the area, and to remove difficulties and obstacles arising for credit institutions and enterprises, the people of the State Bank of Vietnam have developed a working program for the State Bank's Board of Directors in 15 regions across the country, in which region 6 is the first working location of the Red River Delta Working Program.

According to the Deputy Governor, Region 6 is part of the Northern Key Economic Zone, the core development region, the dynamic territory of the Red River Delta, contributing 11.28% to the country's GDP in 2024. This is a region that can be said to include provinces with strengths in economic development with a complete, synchronous and modern transportation system with many highways, airports, seaports; concentrating large-scale industrial parks as well as having great potential for tourism... Therefore, promoting credit in Region 6 is extremely important.

Speaking at the Conference, Mr. Nguyen Duc Tho, Vice Chairman of Hai Phong City People's Committee said that, with the role of the lifeblood of the economy, the banking sector has recently implemented many solutions to promote credit growth to meet the capital needs for production and business of people and enterprises; participating in resources to complete the infrastructure for socio-economic development of the region, accompanying localities to effectively implement the Economic Recovery and Development Program.

Mr. Nguyen Duc Tho, Vice Chairman of Hai Phong City People's Committee highly appreciated the effectiveness of bank capital in the area.

2025 is the year of acceleration, breakthrough, reaching the finish line, striving to achieve the highest socio-economic development goals for the period 2021 - 2025. According to Mr. Nguyen Duc Tho, with specific tasks, localities are actively implementing in the spirit of "not saying no, not saying difficult, not saying yes but not doing" to strive to achieve the common goal, creating the premise to help our country overcome the trap of middle-income countries, by 2030 it will be a developing country with modern technology, high middle income, by 2045 it will become a developed country, high income.

Therefore, the leaders of Hai Phong City hope that the Banking sector will continue to accompany, care for and support the city in the process of developing the system of credit institutions, people's credit funds and other financial institutions in Hai Phong in particular and the four provinces in the region, contributing to ensuring the financial system in the region develops stably, safely and smoothly.

Continue to promote credit in the area

Reporting at the Conference, 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.

Acting Director of State Bank of Vietnam Region 6 reports at the Conference

By economic sector, by the end of January 2025, credit for agriculture, forestry and fishery reached VND 53 trillion, up 4.1% compared to the end of 2024, accounting for 6.2%; Credit for industry and construction reached over VND 208 trillion, up 3.3% compared to the end of 2024, accounting for 24.7% of the total outstanding debt of the region. Credit for priority sectors by January 31, 2025 also achieved positive results, specifically loans for agricultural and rural development with outstanding loans reaching VND 226 trillion, accounting for 26.9% of total outstanding credit in the region; Loans for small and medium enterprises reached VND 152 trillion, accounting for 18.1% of total outstanding credit in the region... In addition, credit in potentially risky sectors continues to be well controlled.

In addition, State policy credit and specific credit programs such as policy credit at the Vietnam Bank for Social Policies; implementation of the Social Housing Loan Program under Resolution 33/NQ-CP of the Government... are also implemented vigorously and strongly. Conferences connecting banks and enterprises to grasp the difficulties and problems of customers are regularly held.

At the Conference, the opinions of representatives of State management agencies, Associations, enterprises, and credit institutions showed a comprehensive picture of the local socio-economic situation, especially the situation of production and business activities and bank credit work in recent times.

Business representatives discuss at the Conference

Concluding the Conference, Deputy Governor Pham Thanh Ha said that Region 6 with about 256 credit institutions, outstanding loans ranked 4th out of 15 Regions concentrated in provinces with great potential and potential for socio-economic development. Credit activities in Region 6 are assessed to have more advantages than other regions. Therefore, in the coming time, credit activities in Region 6 will continue to be promoted and further developed to contribute to the implementation of economic growth targets of localities.

The Deputy Governor requested the regional SBV to perform well the function of state management of currency, credit and banking activities in the area according to the tasks assigned by the SBV Governor. In particular, continue to direct the 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 Bank-Enterprise Connection Program in appropriate forms; continue to promote the implementation of credit programs under the direction of the Government and the Prime Minister. At the same time, coordinate with departments and branches to promote the implementation of the Bank-Enterprise Connection Program in appropriate forms to grasp and proactively handle recommendations on banking activities; in cases beyond authority, report to the State Bank, Provincial and Municipal People's Committees for consideration and handling according to regulations...

In addition, the Deputy Governor also requested that the Head Office and branches of credit institutions in the area continue to reduce operating costs, increase the application of information technology, simplify procedures to reduce lending interest rates, and be willing to share part of the profits to support people and businesses.

Conference Overview

Implementing credit growth solutions that are correct and on target right from the beginning of the year, promptly meeting the economy's credit capital needs, directing credit to production and business sectors, priority sectors and economic growth drivers; strictly controlling credit for sectors with potential risks; Focusing on credit investment in feasible key projects and works serving socio-economic development; local strengths and sectors; promoting the implementation of credit programs and policies under the direction of the Government and the Prime Minister; developing modern payment services; promoting digital transformation in banking activities; ensuring security and safety of information technology and payment systems...

In addition to the solutions of the banking sector, the Deputy Governor said that it is also necessary to have the coordination of 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.