A boost for businesses.

Lower interest rates and expanded credit limits have boosted capital flows into production and business, leading to the highest credit growth in Thai Nguyen in the first seven months of 2025 in the past five years. This resource has become a "catalyst" helping businesses expand investment, develop production and business, while stimulating consumer demand and promoting local economic growth.

In the first six months of 2025, outstanding credit in the province reached approximately 148,000 billion VND, an increase of 24.4% compared to the same period last year.

Since the beginning of the year, following the State Bank of Vietnam's directive to adjust deposit interest rates, the interest rate level in Thai Nguyen province has seen a significant shift. Lowering deposit interest rates by 0.1 to 1.0 percentage point (depending on the term) has directly reduced the mobilization costs of commercial banks.

As the cost of capital decreases, the ability to pass the benefits on to borrowers increases, creating conditions for the average lending interest rate for new transactions to fall to 6.25% per year, 0.68 points lower than at the end of 2024. This is an important basis for many businesses and households to decide to borrow capital for investment in expanding production, business, and consumer purchases.

On the household side, social housing loan packages and consumer credit contribute to stimulating the market and boosting the consumption of goods.

Credit institutions are not only reducing lending interest rates but also proactively expanding preferential credit packages, focusing on loans for production, business, consumption, and social housing for the poor and low-income earners. The emergence of these credit packages provides customers with more choices regarding terms, repayment structures, and financing options that suit their actual cash flow.

Notably, many banks have publicly displayed their interest rate schedules on their websites, along with loan conditions and promotional programs. This action not only enhances transparency in the credit market but also helps borrowers compare and access funding more conveniently.

A representative from MB Bank's Thai Nguyen branch stated: The reduction in interest rates and expansion of credit limits create opportunities for the bank to increase lending to support production and consumption. However, when appraising loans, the bank must be more cautious with long-term investment applications and projects without clear financial plans.

MB Bank prioritizes lending to businesses with transparent financial data, effective capital utilization plans, and guaranteed repayment capacity. Simultaneously, MB Bank is expanding its products combining guarantees and supply chain financing, and applying flexible debt restructuring mechanisms to reduce excessive repayment pressure on customers experiencing short-term disruptions.

Lower lending interest rates create favorable conditions for businesses to prioritize using investment capital to purchase equipment to improve productivity, refine processes, and expand markets.

With reasonable interest rates, many small and medium-sized enterprises (SMEs) have boldly implemented investment projects in equipment, improved their payment balances, and optimized their working capital cycles. In the first seven months of the year, credit disbursement to these enterprises reached VND 20,057 billion, with outstanding loans reaching VND 24,674 billion, an increase of 0.38% compared to the end of 2024 and accounting for 16.17% of the total outstanding loans in the area, with 1,972 enterprises still having outstanding loans.

Mr. Pham Van Binh, Director of Hope Star Co., Ltd., a company specializing in animal feed production in Pho Yen ward, said: The adjustment of lending interest rates by banks, reducing them by 1.0% to 2.5% per year, has helped businesses save significantly on financial costs. The reduced interest expenses have become a resource for the company to reinvest, expand production lines, and improve technology, thereby enhancing product quality and increasing competitiveness in the market.

Sharing the same view, Ms. Vu Thi Hoan, Director of Khanh Vinh Co., Ltd., a company operating in the food technology sector in Quan Trieu ward, commented: When deposit interest rates decrease, lending interest rates are also adjusted appropriately, opening up favorable opportunities for businesses to access capital. Thanks to low-cost capital, the company can proactively expand its distribution system, aggressively access new markets, and improve product sales efficiency.

Lower lending interest rates create favorable conditions for businesses to prioritize the use of capital for production development and expansion of product markets. (Photo: Archival material)

Thanks to ample credit room, by July 31, 2025, the total outstanding loan balance in Thai Nguyen reached VND 152,118 billion, an increase of 13.55% compared to the end of 2024, exceeding the growth scenario by 98.43% and achieving 92.6% of the annual plan. This increase is significantly higher than the national average of 9.9%, and also sets a record for the highest growth rate in the past 5 years.

Of this, credit is concentrated in priority sectors that play a pivotal role in the economy : Agriculture, forestry, and fisheries reached VND 12,602 billion; industry and construction reached VND 42,100 billion; and trade and services reached VND 97,416 billion. It is estimated that by the end of August 2025, the total outstanding loans in the province will reach VND 153,500 billion, an increase of 14.58% compared to the end of the previous year, continuing to maintain a stable growth rate.

According to the leaders of the State Bank of Vietnam's Region V, the reduction in interest rates and expansion of credit limits have created a double boost: helping businesses recover and grow, while simultaneously stimulating consumption and creating more jobs. Credit flows are not only directed towards key economic sectors but also stimulate domestic purchasing power and increase aggregate demand – a key factor in achieving the 2025 growth target.

Looking at the broader picture, credit management policies over the past period have not only brought immediate benefits but also shaped a healthy, transparent, and sustainable financial and banking environment. Businesses have access to capital faster and at lower costs; banks have expanded their customer base with high-quality products; and local economies have been given additional resources to achieve breakthroughs.

With credit growth at its highest level in the last five years, coupled with flexible policy management, Thai Nguyen has grounds to expect to achieve, or even surpass, its economic growth target for 2025. A favorable credit environment, if maintained and combined with other support policies, will continue to be one of the important levers for businesses to thrive…

Source: https://baothainguyen.vn/kinh-te/202508/cu-hich-cho-cac-doanh-nghiep-35e120d/