Supporting local economic development.

As the state management agency for monetary, credit, and banking activities in the province, in 2024, the State Bank of Vietnam's Phu Tho branch proactively and decisively directed and managed monetary, credit, and banking activities, along with the system of credit institutions in the province, to support and promote economic growth... Thereby, it actively contributed to the fulfillment of the sector's political tasks, played a vital role, and made a positive contribution to the socio-economic development of the province.

Banking activities make a positive contribution to the socio -economic development of the locality.

Restoring production and business activities.

From the beginning of 2024, closely following the directives of the Government, the Prime Minister, the State Bank of Vietnam (SBV), and the local socio-economic development situation, the banking sector in Phu Tho has implemented many appropriate and timely solutions to reduce interest rates and create favorable conditions for people and businesses to access credit, contributing to overcoming difficulties in production and business, supporting economic growth recovery, and ensuring the safe development of the credit institution system.

Along with focusing on solutions to expand credit investment while strengthening credit quality management, the entire sector also implemented many key credit programs such as: Loans for agricultural and rural development with outstanding loans of over 41,000 billion VND for 252,840 customers, accounting for 35.7% of the total outstanding loans in the area; loans to businesses in the area with the number of businesses receiving disbursements in 2024 being 863 businesses, the loan amount exceeding 52,000 billion VND, accounting for 29.14% of the total outstanding loans in the entire area, of which loans under the bank-business connection program reached over 14,600 billion VND, an increase of nearly 2,300 billion VND (33.46%) compared to 2023...

Supporting and sharing the difficulties with borrowers has been one of the key tasks that credit institutions have focused on in recent times. In 2024, along with many localities nationwide, Phu Tho province was heavily affected by Typhoon No. 3 (Yagi) and the subsequent floods. Following the direction of the State Bank of Vietnam, the State Bank of Vietnam's provincial branch proactively assessed the situation and directed credit institutions in the area to focus on reviewing and compiling the losses of borrowers. Simultaneously, it advised the Provincial People's Committee to issue a directive on organizing the implementation of banking sector solutions to support people and businesses facing difficulties due to Typhoon No. 3 in restoring and promoting production, business, and economic development.

According to statistics, the entire province has 1,264 customers affected by Typhoon No. 3 with outstanding loans of 870 billion VND. Based on the extent of damage, to date, credit institutions have restructured loan repayment terms for 114 customers with outstanding loans of 7.6 billion VND; waived or reduced interest for 375 customers with outstanding loans of 1,361 billion VND; provided new loans to 606 customers; and reduced interest rates on 1,578 billion VND of outstanding loans, with a cumulative total of 1.6 billion VND in interest reductions.

Previously, in order to support customers facing difficulties in accordance with Circular No. 02/2023/TT-NHNN and Circular No. 06/2024/TT-NHNN, credit institutions in the area actively implemented policies to alleviate difficulties, restructure repayment terms, maintain the same debt classification, reduce lending interest rates, and simplify administrative procedures for 173 customers with a total debt value of VND 1,014 billion (including VND 954 billion in principal and VND 60 billion in interest).

Closely following the province's socio-economic development program, the State Bank of Vietnam's provincial branch also directed credit institutions in the area to effectively implement the credit program for forestry and fisheries sectors under the Government's 60,000 billion VND credit package. To date, the committed loan amount under credit contracts has reached over 754 billion VND, with cumulative disbursements since the beginning of the program totaling 446,800 million VND, disbursed to 681 customers; outstanding loans to individuals and households reached 217,056 million VND. In addition, credit institutions have actively implemented interest rate support for social housing, worker housing, and the renovation and reconstruction of old apartment buildings according to Resolution 33/NQ-CP. During the year, BIDV Hung Vuong branch signed a credit agreement to finance the low-rise social housing project of Minh Phuong Social Housing Co., Ltd. with an amount of 95 billion VND. Of this amount, 80.3 billion VND has been disbursed, reaching 85% of the signed agreement value.

Officials from the Social Policy Bank of Yen Lap district and leaders of Minh Hoa commune (Yen Lap district) inspect the effectiveness of using capital to support production development at households.

Pioneering in digital transformation

With a consistent and unwavering perspective of "customer-centricity and convenience, using user convenience as a measure of effectiveness," in 2024, the banking sector in Phu Tho province proactively and diligently implemented comprehensive digital transformation across many aspects. In accordance with the Non-Cash Payment Development Plan for the period 2021-2025 in Phu Tho province and Decision 2345/QD-NHNN of the State Bank of Vietnam on safety and security solutions in online payments and bank card payments using biometric authentication, the provincial branch of the State Bank of Vietnam directed its branches and credit institutions to actively and proactively implement technology applications and digital transformation into credit granting processes, such as disbursement via bank apps and websites, to shorten administrative procedures and streamline lending processes.

In addition, the sector is decisively directing the implementation of the tasks outlined in Project 06 (Decision No. 06/QD-TTg of the Prime Minister dated January 6, 2022, approving the Project on developing applications of population data, electronic identification and authentication to serve national digital transformation in the period 2022-2025, with a vision to 2030).

With the goal of developing a modern, safe, efficient, and interconnected payment infrastructure, the State Bank of Vietnam's provincial branch has directed banks and credit institutions to continue building and upgrading technical infrastructure and standardizing databases to connect and share information with payment service providers and payment intermediaries serving cashless transactions. Banks and credit institutions have introduced many modern, user-friendly, and convenient products and services, especially mobile payment utilities such as QR code, card information encryption, contactless payment, internet banking, mobile banking, and payment of electricity, water, and public services... meeting customer needs and providing practical experiences and benefits.

In addition, banks, credit institutions, and payment intermediaries have actively implemented programs to waive or reduce payment service fees, payroll fees, transaction fees on electronic banking channels for customers paying online, and non-cash payment fees through digital banking applications... to promote and encourage cashless payment. In 2024, the total number of cashless transactions through banks reached over 91.5 million, an increase of over 8.25 million transactions (10%), with a total value of over VND 1,629 billion (a 29% increase compared to 2023). The strongest growth was seen through the internet channel (26% increase in transactions, 44% increase in value); through mobile phone channels (8% increase in transactions, 36% increase in value); and through other payment methods (36% increase in transactions, 46% increase in value)...

Along with that, payment infrastructure has received significant investment from banks and credit institutions, ensuring modern, safe, efficient, and smooth operation. By the end of 2024, credit institutions in the area had installed 205 ATMs, 990 POS card acceptance devices, 10 automated teller machines (Autobanks), issued thousands of QR codes, and deployed domestic chip cards to replace magnetic stripe cards for convenience and enhanced security for users. In addition to 1,614 bank payment acceptance points, telecommunications companies in the area have also actively developed e-wallets and opened mobile money payment accounts, especially in rural and mountainous areas. To date, the number of payment acceptance points of other intermediary payment organizations (Viettel Phu Tho, VNPT Phu Tho) is 9,968, bringing the total number of payment acceptance points in the province to nearly 11,600...

Comrade Pham Truong Giang - Director of the State Bank of Vietnam's Phu Tho branch, stated: Although the results achieved are positive, especially in effectively supporting businesses and farmers in accessing capital, credit growth remains lower than the national average... Therefore, to create a foundation for entering a new era - an era of national progress, in 2025, the Phu Tho banking sector will continue to closely follow the orientation and objectives of the State Bank of Vietnam's monetary policy, and the province's socio-economic development goals. Based on this, it will strengthen and improve the effectiveness of state management of monetary and banking activities in the area. To support local economic development, the sector will focus on directing banks and credit institutions to closely adhere to business plans and credit growth in line with the socio-economic developments in the area; concentrating capital on production and business sectors, especially priority sectors and key economic development programs of the province. Along with boosting capital mobilization, we will actively and proactively create favorable conditions for people and businesses to access bank credit, remove obstacles and promote the expansion of consumer credit while ensuring safety and soundness, contributing to limiting illegal lending. We will accelerate digital transformation in banking operations and cashless payment activities, meeting the requirements for new business models and products and services based on information technology, digital banking, digital payments, etc.

Dinh Vu

Source: https://baophutho.vn/dong-hanh-phat-trien-kinh-te-dia-phuong-228546.htm