2023 is a busy year for the business community, cooperatives and people of Ha Tinh as they simultaneously face many challenges due to the impact of the economic recession. In this context, the banking sector has proactively and flexibly managed monetary policy to both ensure credit safety and revive the economy.
Business is difficult, there is a bank
After the COVID-19 pandemic, the activities of the business community and cooperatives in Ha Tinh have not yet fully recovered and are facing the global economic recession and pressures from the Russia-Ukraine conflict. At the same time, businesses are under a lot of pressure such as: "escalating" production costs while the market is gradually shrinking, orders are decreasing...
To cope with this "storm", many enterprises and cooperatives have to reduce the scale of operations, cut labor, and respond flexibly to avoid "disruption" of the production supply chain. In that context, the operations of credit institutions in the area are also very difficult, posing the "problem" of how the banking sector can both ensure safe and effective credit operations and support customers to overcome difficulties.
Vietcombank Ha Tinh staff guides customers through loan procedures.
With a proactive and flexible monetary policy, in 2023, the State Bank of Vietnam has announced four times to reduce operating interest rates to help ease difficulties for the economy. Grasping the reality with an open spirit and sharing with businesses, Vietcombank Ha Tinh Branch has proactively supported resources, giving customers more strength to overcome difficulties.
Mr. Duong Quoc Khanh - Head of Corporate Customer Department of Vietcombank Ha Tinh Branch informed: “The unit has proactively implemented many synchronous solutions, including reducing lending interest rates to a low and stable level in the market (current interest rates are only from 4.5%/year). In addition to preferential interest rates for new loans, Vietcombank has repeatedly reduced interest rates for old loans, contributing to reducing financial costs for businesses. In addition, the bank always focuses on simplifying lending procedures, improving appraisal efficiency to increase lending to customers with feasible plans but low collateral ratios. As of December 31, 2023, the branch's total outstanding debt reached VND 15,133 billion, of which corporate debt reached VND 9,336 billion with more than 600 businesses currently benefiting. It is worth mentioning that Vietcombank has provided capital to serve key national projects in the area and the province is investing in".
Mr. Bui Dinh Uoc - Deputy General Director of Thanh Huy Group Joint Stock Company (Cam Xuyen) shared: "As a transport construction and installation enterprise, we have received large-scale capital from credit institutions to implement projects to ensure progress and quality in the context of having to suffer many impacts due to the impact of the economic recession. Thanks to that, the operating situation has many positive changes with revenue in 2023 reaching over 500 billion VND".
Thanh Huy Group Joint Stock Company (Cam Xuyen) received loans from banks to implement key projects in many provinces and cities.
During their operations, credit institutions have always directed capital to production and business, priority areas according to the Government's policies and key projects of the province. In particular, credit is promoted for agricultural - rural - farmer development, supporting the province to achieve the goal of soon achieving the new rural province. Accordingly, outstanding agricultural - rural loans reached over 41,402 billion VND, accounting for about 45% of the total outstanding loans in the whole area. In particular, it has contributed significantly to the formation of potential commodity economic models, large-scale farms with revenue of billions of VND/year. Many enterprises and cooperatives operating in the agricultural sector such as: KC Ha Tinh Company Limited (Thach Ha), Ha Tinh Seed Joint Stock Company (Ha Tinh City), Nga Hai Cooperative (Nghi Xuan), Gia Phuc Agricultural Cooperative (Can Loc) ... continue to be "injected with capital" to gradually realize the goal of modern agricultural production.
A series of customer support policies
In 2023, when the capital absorption capacity of enterprises and people slowed down, the banking industry sent out many "signals" to overcome difficulties. The State Bank of Vietnam has implemented a series of policies to support lending interest rates with the core goal of boosting capital supply for the economy and reviving production and business activities. These include the policy of supporting interest rates of 2%/year according to Decree No. 31/2022/ND-CP of the Government, the credit package of 120,000 billion VND, the preferential credit program for forestry and fishery products of 15,000 billion VND, the policy of restructuring debt repayment terms and maintaining debt groups according to Circular No. 02/2023/TT-NHNN...
In 2023, credit institutions in Ha Tinh have implemented many policies to support businesses to overcome difficulties.
Ms. Tran Thi Thuy (Dong Mon Commune, Ha Tinh City) shared: The family invested in buying a tractor to serve agricultural production and provide plowing services for hire and was lent 260 million VND by Agribank Ha Tinh II Branch under the 2%/year interest rate subsidy package. During difficult times, with the bank's support, we feel more secure.
In addition to the Central Government's policy, commercial banks have promoted communication and created conditions for customers to enjoy the province's interest rate support mechanism such as: lending with interest rate support according to Resolution No. 123/2018/NQ-HDND of the Provincial People's Council stipulating a number of policies to encourage agricultural and rural development, the mechanism for building new rural areas and urban areas of Ha Tinh province in the period of 2019-2020; Decision No. 868/QD-UBND of the Provincial People's Committee on guiding the order, procedures and records for implementing policies to encourage agricultural and rural development, the mechanism for building new rural areas and Resolution No. 51/2021/NQ-HDND of the Provincial People's Council stipulating policies to encourage agricultural and rural development associated with building new rural areas in the province in the period of 2022-2025.
Mr. Nguyen Xuan Tam - Deputy Director of Agribank Ha Tinh Branch said: “The branch has promoted communication on credit policies so that customers can grasp and access them, especially interest rate support packages and preferential interest rates. At the same time, closely coordinate with local authorities, organizations at all levels such as farmers, women... to promote lending. Prioritize capital for production sectors, serving agricultural and rural development and credit sectors according to Decree No. 55/2015/ND-CP of the Government; support loans with 50% of loan interest rates according to Resolution No. 51/2021/NQ-HDND of the Provincial People's Council and other preferential interest rate programs of Agribank. As of December 31, 2023, the total outstanding debt of the whole branch reached VND 13,549 billion, an increase of VND 1,404 billion, a growth rate of over 11.6%".
Customers come to make transactions at Agribank Ha Tinh Branch.
According to Mr. Nguyen Van Trung - Director of the State Bank of Vietnam, Ha Tinh Branch, in 2023, banking activities in Ha Tinh were basically stable and had growth. Credit institutions have closely followed the direction of the Government, the industry and the headquarters; focused all resources on investing in production sectors, priority sectors, effective projects and plans, economic recovery programs to contribute to local socio-economic development. In 2023, a series of preferential policies were introduced by the banking sector to demonstrate the goal of accompanying and removing difficulties for the economy, gradually creating motivation for the business community, cooperatives and people to recover and develop production and business.
Thu Phuong
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