The operations of the banking system in Region 5 contribute to the development of the local economy.

Resolution No. 11-NQ/TW dated February 10, 2022 of the Politburo on the direction of socio-economic development and ensuring national defense and security in the Northern midland and mountainous region to 2030, with a vision to 2045, has set the goal of building and developing the Northern midland and mountainous region into a green, sustainable and comprehensive development region in accordance with the region's particularly important strategic position in terms of socio-economy, ecological environment, national defense, security and foreign affairs with regional GRDP growth reaching 8-9%/year, shifting the economic structure to industry - construction; prioritizing the development of socio-economic infrastructure (transport infrastructure, information technology infrastructure).

In the first quarter of 2025, the provinces of Region 5 achieved a fairly good growth rate, of which Bac Giang was the locality with the highest growth rate in the country at 13.82% and was the locality that maintained a double-digit increase in GRDP over the past 5 years, followed by Bac Ninh with an increase of 9.05%, Lang Son with an increase of 8.27%, Bac Kan with an increase of 7.94%, Cao Bang with an increase of 6.01% and Thai Nguyen with an increase of 4.02%.

Following the direction and management of the Government, the Prime Minister, the State Bank of Vietnam, and the State Bank of Region 5, the SBV has directed local credit institutions to synchronously implement solutions to ensure safe and effective banking operations, meet capital needs for the economy to support socio-economic development and ensure social security in the locality. In particular, focusing credit on production and business sectors, priority sectors and economic growth drivers according to the Government's policy; ensuring safe and effective credit operations; continuing to strictly control credit in potentially risky sectors; creating favorable conditions for businesses and people to access bank credit capital. Reducing the deposit interest rate level, thereby creating room for reducing lending interest rates. The SBV has directed commercial banks to adjust deposit interest rates down by 0.1-0.9%/year depending on the term and form of deposit. At the same time, credit institutions have launched many credit packages with preferential interest rates to stimulate credit demand, especially consumer loans and social housing loans for the poor and low-income people to contribute to promoting consumer credit. The average lending interest rate for new transactions of commercial banks is 6.54%/year, down 0.4%/year compared to the end of 2024.

As of the end of March 2025, the total mobilized capital of credit institutions in Region 5 reached VND 582,120 billion, an increase of 3.8% compared to the end of 2024. Of which: in Thai Nguyen province, it reached VND 122,542 billion, an increase of 3.27%, Bac Kan province reached VND 16,062 billion, an increase of 0.76%, Cao Bang province reached VND 30,253 billion, an increase of 2.95%, Lang Son province reached VND 51,889 billion, an increase of 3.74%, Bac Giang province reached VND 132,277 billion, an increase of 8.53%, Bac Ninh province reached VND 229,097 billion, an increase of 1.96%.

Outstanding loans for the economy of Region 5 reached VND 534,997 billion, an increase of 6.1% compared to the end of 2024 (In which: in Thai Nguyen province, it reached VND 123,089 billion, an increase of 3.99%, Bac Kan province reached VND 16,078 billion, an increase of 3.05%, Cao Bang province reached VND 16,926 billion, an increase of 0.45%, Lang Son province reached VND 46,860 billion, an increase of 2.83%, Bac Giang province reached VND 124,073 billion, an increase of 9.71%, Bac Ninh province reached VND 207,971 billion, an increase of 6.73%). In terms of credit structure, the agriculture, forestry and fishery sector accounted for 9.03%, the industry and construction sector accounted for 30.04%, the trade and services sector accounted for 60.93%.

Investment in agricultural and rural development continues to be effectively implemented by credit institutions in the area. In the first 3 months of 2025, credit institutions provided credit to the agricultural and rural sectors with turnover reaching 67,276 billion VND, outstanding loans reaching 173,700 billion VND, up 2.3% compared to the end of 2024 and accounting for 32.47% of the total outstanding loans in the area with 787,563 customers with outstanding loans, overdue debts of 2,227 billion VND, accounting for 1.28% of the total outstanding loans in agriculture and rural areas. Focusing on lending to communes building new rural areas with outstanding loans reaching 133,253 billion VND, accounting for 24.9% of the total outstanding loans in the area with 590,613 households, 1,897 enterprises and 63 cooperatives with outstanding loans. Along with direct support capital from the state budget, bank credit capital has made an important contribution to the implementation of the objectives of the National Target Program on New Rural Construction; creating conditions to exploit the potential and strengths of each locality, organizations and individuals in rural areas to develop production and business, create jobs, increase income and sustainably reduce poverty.

In addition, local credit institutions have strengthened dialogue/connection between banks and enterprises to promptly resolve difficulties and obstacles in credit relations, contributing to supporting socio-economic development. On March 18, 2025, the State Bank of Vietnam organized the Announcement of the Decision, launching the State Bank of Vietnam Region 5 and the Conference "Promoting bank credit to contribute to economic growth in Region 5" co-chaired by Deputy Governor of the State Bank of Vietnam Doan Thai Son and Mr. Nguyen Huy Dung - Chairman of the People's Committee of Thai Nguyen province.

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In the area, over 90% of businesses are micro-enterprises, small and medium-sized enterprises (SMEs). The banking system in the area has preferential lending programs for this type of enterprise such as preferential interest rates, debt repayment restructuring... to help businesses overcome difficulties. In the first 3 months of 2025, credit turnover for SMEs reached VND 32,179 billion, outstanding loans reached VND 75,919 billion, up 2.5% compared to the end of 2024 and accounting for 14.19% of the total outstanding loans in the area with 7,345 SMEs with outstanding loans, overdue debt was VND 2,658 billion, accounting for 3.5% of the total outstanding loans for SMEs.

Region 5 is also an industrial development center with industrial parks and clusters with many workers, so the demand for housing is high, the construction of social housing projects is urgent. To meet the capital demand for social housing projects, local banks have provided loans for 04 social housing projects (in Bac Ninh, Thai Nguyen, Lang Son), of which a limit of 370 billion VND has been granted to investors, with disbursement turnover of 244.2 billion VND; loans to home buyers reached nearly 20 billion VND. In addition, each bank has its own policies on housing loans such as: the housing loan program under Decree No. 100/2024/ND-CP of the Government is being implemented at the Bank for Social Policies; some commercial banks such as BIDV, VCB, Agribank are implementing credit packages for young people to own houses... Thereby contributing to solving housing difficulties for people to settle down and start a business.

Source: https://thoibaonganhang.vn/hoat-dong-cua-he-thong-ngan-hang-khu-vuc-5-gop-phan-phat-trien-kinh-te-dia-phuong-163861.html