Promote safe and effective credit activities

In the first 6 months of 2025, outstanding loans in Khanh Hoa province in particular and in the management area of the State Bank of Vietnam (SBV) Branch Region 10 (managing Khanh Hoa and Lam Dong provinces) in general were much lower than the national average. The SBV has directed credit institutions to promote credit activities but must ensure safety and efficiency.

Low loan growth

According to the report of the State Bank of Vietnam, Branch 10, as of the end of June, outstanding loans in the whole region reached VND544,223 billion, an increase of VND20,330 billion, equivalent to an increase of 3.88% compared to the beginning of the year, lower than the overall growth rate of the whole country (the outstanding credit balance of the whole country increased by 9.9%). Of which, outstanding credit balance in Khanh Hoa province reached VND193,464 billion, an increase of 4.9%; Lam Dong province VND350,759 billion, an increase of 3.88% compared to the beginning of the year. Some credit institutions have pointed out the impacts that caused credit activities in the first months of the year to be low, such as: The current planning status in some places in the provinces in the region is still fluctuating, causing difficulties in the process of determining land prices when receiving collateral as land use rights; The implementation of the 120,000 billion VND credit program for social housing loans in the region has achieved low results, the number of eligible social housing projects announced is very small, in which Khanh Hoa province has not yet announced the list of eligible projects according to the guidance of the Ministry of Construction to implement this program. In addition, lending activities for the agricultural and rural sectors, especially agricultural cooperatives, still face many difficulties and problems such as: Agricultural insurance is still limited; the linkage plan in production and product consumption between members is not tight and stable; there is no collateral...

Disbursement of credit capital to customers.

Ms. Do Thi Bich Phuong - Director of VietinBank Khanh Hoa Branch said that the policy of arranging and merging administrative units has opened up opportunities for banks to transform their business models and upgrade their management capacity, approaching many new and potential customer groups. However, this also has some impacts on the operations of banks when the number of state agencies and local socio-political organizations has decreased sharply, leading to the termination of thousands of payment accounts, the cessation of service contracts such as: Salary payment, collection, payment..., leading to a decrease in transaction scale and payment turnover in the system. At the same time, banks must also update all legal records of corporate and individual customers according to the new administrative unit name... Therefore, in order for credit institutions to be able to adapt flexibly and better support local authorities during the transition period, the State Bank needs to issue synchronous instructions on updating customer legal information, establish an inter-bank coordination mechanism in the merged areas, promote digital transformation in the public finance sector, and build a data sharing mechanism between state agencies and credit institutions.

Credit growth associated with bad debt control

Assessing the banking performance in the first 6 months of the year, the leader of the State Bank of Vietnam Branch 10 said that credit institutions in the region have closely followed the policies and directions of the Government, the State Bank, and local economic development programs and plans to implement solutions for safe and effective credit growth, along with improving credit quality, controlling and handling bad debts; focusing on lending capital to production and business sectors, priority sectors; actively implementing support solutions, removing difficulties, increasing access to capital for businesses and people to serve production and business activities, contributing to economic growth and ensuring social security. However, credit growth in the whole region has not reached the expected level due to a number of difficulties such as: The global economic and political instability affecting the economic situation of the provinces in the region; The key economic sectors of the provinces have not really flourished, many enterprises have encountered difficulties in selling their products, and attracting investment in some projects is still limited... Therefore, the State Bank of Vietnam, Region 10 Branch, recommends that the People's Committees of the provinces and relevant agencies promptly complete local development planning, promote investment in socio-economic infrastructure in the area, create favorable conditions to attract enterprises, expand the target group of credit customers; deploy, review and announce eligible social housing projects according to the guidance of the Ministry of Construction so that credit institutions in the area have a basis for lending.

Recently, at the working session of the State Bank of Vietnam delegation with the State Bank of Vietnam Branch Region 10 and credit institutions in the area on banking activities in the first 6 months of the year, Deputy Governor of the State Bank of Vietnam Doan Thai Son acknowledged the recommendations; at the same time, directed the State Bank of Vietnam Branch Region 10 and banks to deploy solutions to promote credit growth associated with organizing and implementing well the bank-business connection program in appropriate forms to remove and share difficulties and increase access to credit for customers. By the end of June, the debt ratio of the whole area was 2.33%, an increase of 0.46% compared to the end of 2024. Therefore, Deputy Governor of the State Bank of Vietnam Doan Thai Son also emphasized that credit growth must be safe, effective, and lending must be focused on key areas. In addition to implementing measures to prevent new bad debts, banks need to focus on handling existing debts to have more resources to invest in new projects and improve business results. In addition, banks need to reduce costs to reduce lending interest rates to a reasonable level for people and businesses; develop a variety of innovative and creative products and services based on digital technology applications associated with ensuring security, safety and confidentiality to meet the increasing needs of customers...

MAI HOANG

Source: https://baokhanhhoa.vn/kinh-te/202507/day-manh-hoat-dong-tin-dung-an-toan-hieu-qua-2a263d3/