Bac Ninh: Providing capital for the private economic sector

BAC NINH - Following the direction of the Government and the State Bank, recently, credit institutions in the province have synchronously implemented many solutions to support the private economic sector in accessing finance to develop production, business, innovate technology and improve competitiveness. Thereby contributing to promoting the development in quantity, scale and quality of the private economic sector.

Báo Bắc Ninh•21/07/2025

Removing obstacles

Implementing Resolution No. 68-NQ/TW dated May 4, 2025 of the Politburo on private economic development, the National Assembly has passed many specific support policies for private enterprises. Resolution No. 198/2025/QH15 was passed by the 15th National Assembly on May 17, 2025, at the 9th session, stipulating a number of special mechanisms and policies for private economic development. Accordingly, enterprises in the private economic sector, business households, and individual businesses are supported by the State with an interest rate of 2% when borrowing capital to implement green, circular projects and apply a framework of environmental, social, and governance standards. This is an important content to remove major obstacles for enterprises in the private economic sector, including groups of micro-enterprises, business households, and individual businesses, which are limited in resources and have difficulty borrowing capital, especially capital for investment in high-cost, long-term fields.

Truong Manh Aquaculture Cooperative (Mao Dien ward) is supported by the bank with preferential loans in the production and business process.

Currently, the average lending interest rate for new transactions of commercial banks has decreased by 0.08%/year compared to the end of 2024, creating conditions for private enterprises to reduce capital pressure in production and business. For 5 priority areas (export, agriculture , high technology, small and medium enterprises, supporting industries), lending interest rates are stable at 4%/year.

Since the beginning of 2025, the Bank for Agriculture and Rural Development ( Agribank ) has implemented 9 preferential credit programs, focusing on key areas such as import and export, production, business, small and medium enterprises. At the same time, it continues to expand consumer loans and support individual business households, an important force in private economic development. The total outstanding loans of the two branches of Agribank Bac Ninh and Agribank Bac Ninh II alone reached nearly 40,000 billion VND, of which 70% of the capital is allocated to the agricultural, rural and farmer sectors, the main customer group being private economic households. These figures clearly demonstrate Agribank's consistent orientation and strong commitment to prioritizing capital sources for the private economic sector.

Along with Agribank, other commercial banks in the province such as: Investment and Development Bank, Foreign Trade Bank, Industrial and Commercial Bank, Military Bank, Asia Commercial Bank... are also implementing many preferential loan packages to support private enterprises, business households, small and medium enterprises to expand production and business activities.

Improve capital absorption capacity

In the process of economic integration and development, the private economic sector has increasingly affirmed its role as one of the important driving forces for growth, job creation and major contributions to the state budget. Currently, the private economy has become a pillar, accounting for nearly 50% of GDP, creating more than 80% of jobs and making an important contribution to export turnover as well as developing new industries, especially in the fields of technology, services and innovation. However, in reality, this business sector is still facing many barriers in accessing investment capital for production and business.

Currently, Bac Ninh province has more than 450 bank branches, transaction offices, non-bank credit institutions, people's credit funds and microfinance institutions; it is one of the localities with a high number of credit institutions among 15 regions with the same capital mobilization scale. Total outstanding credit balance in the first 6 months of 2025 reached 350.4 trillion VND, an increase of 13.8% compared to the end of 2024. Of which, outstanding debt of the private economic sector (including non-state enterprises, small and medium enterprises, cooperatives, individual business households) accounts for about 54.7% of total outstanding debt.

According to experts, to improve access to credit capital, first of all, private enterprises and small and medium enterprises need to improve transparency in financial management, especially accounting books, and at the same time strengthen management capacity. This is an important condition for banks to accurately assess the performance and reliability of enterprises, thereby being ready to accompany and provide appropriate capital sources.

Ms. Nguyen Huyen Trang, Director of HT Production and Trading Company Limited (Que Vo Industrial Park) shared: “In order for private enterprises to access credit capital, banks should design specialized financial products such as unsecured loans based on business cash flow, loans based on output contracts or loans based on assets formed from loan capital. In addition, it is necessary to expand the credit assessment model based on actual transaction data of enterprises instead of focusing only on collateral assets”.

To increase the ability to absorb capital, especially preferential capital for the private economic sector, the State needs to have an effective credit guarantee mechanism and funds to support start-up investment. In addition, banks need to have specialized credit products, change the appraisal method, focus on business plans instead of mortgaged assets. Enterprises themselves need to improve management capacity, cash flow transparency and methodical investment planning. For small and medium enterprises, the State Bank identifies them as priority subjects, short-term loans in VND lower than normal production and business sectors (currently 4%/year).

In order to support the development of the private economy, credit institutions in the province are committed to directing credit capital to the production and business sector. The cooperation of the banking sector will contribute to providing comprehensive opportunities and resources to promote the private economy, creating momentum for local economic growth.

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