Mekong Delta: Promoting credit growth in key industries

(VLO) The State Bank of Vietnam (SBV) organized a conference titled "Promoting Bank Credit to Contribute to Economic Growth in Region 14". The conference affirmed that in the coming period, it will focus on developing diverse bank credit products suitable for different types of businesses and production and business needs of individuals and enterprises; strengthening administrative reforms to create favorable conditions for individuals and enterprises to access bank credit.

The State Bank of Vietnam, Region 14, needs to accelerate the implementation of credit programs and policies. (Photo courtesy of Huynh Thanh Thien)

Timely provision of sufficient capital for production and business

Accordingly, the State Bank of Vietnam Region 14 includes 5 provinces and cities: Can Tho, Hau Giang, Vinh Long, Soc Trang , and Bac Lieu. According to the State Bank of Vietnam Region 14, in 2024, the total GRDP of Region 14 is expected to reach approximately VND 430.98 trillion (at current prices), accounting for about 31% of the GRDP of the Mekong Delta region.

Specifically, Can Tho contributed 133.06 trillion VND, Hau Giang 68.46 trillion VND, Vinh Long 83.68 trillion VND, Soc Trang 80.15 trillion VND, and Bac Lieu 65.63 trillion VND. GRDP growth rates ranged from 5.65% to 8.76%. GRDP per capita reached 83.25 million VND, higher than the average GRDP per capita in the Mekong Delta region (80.7 million VND).

According to the report from the State Bank of Vietnam Region 14, in implementing the policies of the National Assembly and the Government, the State Bank of Vietnam continues to maintain the current policy interest rates and strengthens measures to help lower interest rates in order to alleviate difficulties for the economy, businesses, and people.

Accordingly, the State Bank of Vietnam Region 14 continues to direct credit institutions to reduce costs in order to lower lending interest rates; publicly disclose average lending interest rates, information on credit packages, programs, and banking products for customers to refer to when accessing loan capital.

At the same time, regular monitoring and recommendations were made to credit institutions that applied rates higher than the average in the area. As a result, the average lending interest rate in VND in the region decreased compared to the end of 2023 (a decrease of 0.8-1.8% per year).

According to the Governor of the State Bank of Vietnam, Nguyen Thi Hong, credit in the region ensures sufficient and timely supply of capital to serve the production and business activities of organizations and individuals in the area, preventing eligible projects and plans from being unable to access bank credit, and ensuring that credit mechanisms, policies, and growth drivers of the locality are fully utilized.

Total outstanding loans in the region at the end of February reached over 387 trillion VND, an increase of 0.42% compared to the end of 2024, accounting for 32.08% of the total outstanding loans in the Mekong Delta region and 2.46% of the total outstanding loans in the economy.

Removing obstacles and promoting credit growth.

Governor of the State Bank of Vietnam, Nguyen Thi Hong, directed the tasks and solutions for the State Bank Region 14 in the coming period.

According to the State Bank of Vietnam Region 14, although credit serving the needs of organizations and individuals in the area maintains growth, contributing to local socio-economic growth, the growth rate is still lower than the national average. The main reason stems from the low demand and absorption capacity of capital in the economy.

Businesses and individuals are facing numerous difficulties in their production and operations; many businesses are downsizing or ceasing operations. In particular, some customer groups have a need for capital but do not meet the loan eligibility requirements, and the financial capacity of businesses, especially small and medium-sized enterprises (SMEs), is declining. Meanwhile, mechanisms and institutions supporting businesses in accessing loans have not been effective; and while bad debts are within safe limits, they continue to increase.

According to the State Bank of Vietnam Region 14, in recent times, production and business activities of local products that are strengths have not fully exploited their advantages, such as: agricultural production is slow to modernize and lacks sustainability; agricultural linkages have been formed but not optimally utilized. Meanwhile, production growth models are mainly extensive; the content of connecting to bring products into global value chains, supporting businesses to form industry clusters, and linking in the agricultural and fisheries sectors... the progress of implementing key projects still does not meet requirements...

Governor of the State Bank of Vietnam, Nguyen Thi Hong, stated that to promote credit growth in the region, the State Bank of Vietnam will continue to implement a comprehensive set of solutions regarding monetary and credit policy management in the coming period.

This includes implementing solutions to stabilize deposit interest rates and reduce costs, strengthening the application of information technology to lower lending interest rates; promoting credit growth from the beginning of the year, directing credit towards production and business sectors and priority areas.

“Particular attention should be paid to promptly meeting the loan needs of people and businesses involved in the production, processing, procurement, temporary storage, and consumption of key export commodities, ensuring food security for the region and the nation, such as rice,” emphasized Governor of the State Bank of Vietnam, Nguyen Thi Hong. At the same time, the State Bank of Vietnam Region 14 needs to accelerate the implementation of credit programs and policies as directed by the Government and the Prime Minister, especially specific programs for the Mekong Delta region such as: the program for lending to link production, processing, and consumption of high-quality, low-emission rice products in the Mekong Delta. In addition, it should identify obstacles faced by businesses and people, strengthen connections with businesses to proactively coordinate with local departments and agencies to resolve issues within their authority, and report to relevant units of the central State Bank of Vietnam if the issues exceed their authority.

Text and photos: KHANH DUY

Source: https://baovinhlong.vn/kinh-te/202503/dong-bang-song-cuu-long-thuc-day-tang-truong-tin-dungvao-nganh-the-manh-585075b/