'Boost' for businesses

Lower interest rates and expanded credit room have boosted capital flows into production and business, bringing Thai Nguyen's credit in the first 7 months of 2025 to its highest level in the past 5 years. This resource has become a "push" to help businesses expand investment, develop production and business, while stimulating consumption and promoting local economic growth.

In the first 6 months of 2025, outstanding credit in the province reached about 148,000 billion VND, an increase of 24.4% over the same period last year.

Since the beginning of the year, implementing the decision to adjust deposit interest rates under the direction of the State Bank, the interest rate level in the Thai Nguyen market has clearly shifted. The reduction of deposit interest rates from 0.1 to 1.0 percentage points (depending on the term) has directly reduced the mobilization costs of commercial banks.

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

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

Credit institutions not only reduce lending rates but also proactively expand preferential credit packages, focusing on production, business, consumption and social housing loans for the poor and low-income people. The appearance of these credit packages gives customers many options in terms of terms, repayment structures and financing options suitable for actual cash flow.

Notably, many banks have published their interest rates on their websites, along with loan conditions and incentive programs. This action not only increases transparency in the credit market, but also helps borrowers compare and access capital more conveniently.

MB Bank Thai Nguyen Branch representative informed: Reducing interest rates and expanding credit room create opportunities for the unit to increase lending for production and consumption. However, when evaluating loans, banks must be more cautious with long-term investment profiles and projects without clear financial plans.

The bank prioritizes lending to businesses with transparent financial data, effective capital usage plans and guaranteed debt repayment capacity. At the same time, MB Bank expands products that combine guarantees, supply chain financing and applies flexible debt rescheduling mechanisms to reduce excessive debt repayment pressure for customers affected in the short term.

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

With reasonable interest rates, many small and medium-sized enterprises have boldly implemented equipment investment projects, improved payment balances and optimized working capital cycles. In the first 7 months of the year, credit turnover for these enterprises reached VND 20,057 billion, outstanding loans reached VND 24,674 billion, up 0.38% compared to the end of 2024 and accounting for 16.17% of total outstanding loans in the whole area, with 1,972 enterprises with outstanding loans.

Mr. Pham Van Binh, Director of Ngoi Sao Hy Vong Company Limited, a company specializing in animal feed production in Pho Yen Ward, said: The fact that banks have adjusted lending interest rates down from 1.0% to 2.5% per year has helped businesses save significantly on financial costs. The reduced interest expense has become a resource for the company to reinvest, expand production lines and improve technology, thereby improving product quality and increasing competitiveness in the market.

Sharing the same view, Ms. Vu Thi Hoan, Director of Khanh Vinh Company Limited, a unit operating in the field of food technology in Quan Trieu Ward, commented: When the mobilization interest rate decreases, the lending interest rate is also adjusted appropriately, opening up favorable capital access opportunities for businesses. Thanks to low-cost capital, the company proactively expands the distribution system, promotes access to new markets and improves product consumption efficiency.

The reduction in lending interest rates creates conditions for businesses to prioritize using investment capital to develop production and expand product consumption markets. Photo: Document

Thanks to the open credit room, by July 31, 2025, the total outstanding loans 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 reaching 92.6% of the annual plan. This increase is much higher than the 9.9% of the whole country, and at the same time set a record of the highest growth in the past 5 years.

In particular, credit focuses on priority sectors, playing a pivotal role in the economy : Agriculture - forestry - fishery reached 12,602 billion VND; industry - construction reached 42,100 billion VND; trade - services 97,416 billion VND. It is estimated that by the end of August 2025, the total outstanding debt of the province will reach 153,500 billion VND, an increase of 14.58% compared to the end of the previous year, continuing to maintain a stable growth rate.

According to the leader of the State Bank of Region V, the reduction of interest rates and the expansion of credit limits have created a "double boost", which is to help businesses recover and grow, while promoting consumption and creating more jobs. Credit flows are not only directed to key economic sectors but also stimulate domestic purchasing power, increasing aggregate demand - a key factor to achieve the 2025 growth target.

In a broader view, the credit management policy in recent times has not only brought immediate benefits but also shaped a healthy, transparent and sustainable financial and banking environment. Enterprises have access to capital faster and at lower costs; banks have expanded their quality customer base; and the local economy has been given more resources to make a breakthrough.

With credit growth at its highest level in the past 5 years, combined with flexibility in policy management, Thai Nguyen has grounds to expect to complete, or even exceed, the economic growth target for 2025. The open credit “room”, if maintained and combined with other support policies, will continue to be one of the important “levers” for businesses to reach out…

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