Phu Yen Banking Industry strives to provide capital for the economy

Since the province was re-established, Phu Yen's banking sector has made remarkable progress. In 1989, the banking system in the area consisted of only State Bank branches and 3 commercial banks, with a modest outstanding loan balance of over 26 billion VND. To date, Phu Yen's banking sector has formed a network of 22 credit institutions with a total outstanding loan balance exceeding 51,000 billion VND, making an important contribution to the socio-economic development of the province.

Expand your network

In 1989, along with the reorganization of administrative units across the country, Phu Yen province was re-established on the basis of separation from Phu Khanh province, accordingly, Phu Yen banking sector was also re-established. In the context of having just emerged from the 1-level banking system, separated from the Phu Khanh provincial banking system, Phu Yen was a purely agricultural province, the socio-economic environment was not yet developed, the infrastructure was still simple..., the banking sector faced many challenges: from restructuring the organization, building human resources, facilities; to developing a network of credit institutions, ensuring capital and service needs for economic entities, creating a driving force for socio-economic development for the province.

However, under the close and timely leadership and direction of the State Bank of Vietnam, the leaders of Phu Yen province, with the solidarity and continuous efforts of civil servants and workers, the entire sector has overcome all difficulties, completed and excellently completed the assigned professional and political tasks.

Up to now, the banking system has been built into a network including the State Bank of Vietnam, Phu Yen branch, the Bank for Social Policies, Phu Yen branch, 16 commercial bank branches (the Bank for Agriculture and Rural Development, Phu Yen branch alone has 10 level 2 branches), 4 people's credit funds and 1 regional Development Bank transaction office, 60 transaction offices, 2 mobile banking points with specialized cars... widely distributed in 9 districts, towns and cities, ensuring the banking system operates continuously, safely and effectively.

After 35 years of re-establishment of Phu Yen province, the banking system in the area has increasingly expanded, meeting the capital and service needs of people and businesses. Photo: LE HAO

Thereby meeting the capital, cash and service needs of people and businesses in the province, including: receiving savings deposits, opening payment accounts, granting credit for production, business and consumption, issuing cards, performing money transfer services and many other services. Especially with the current online banking activities of credit institutions in the area, people and businesses can access, experience and use most banking products and services without having to go directly to the transaction counter.

Up to now, the total mobilized capital in the area has reached more than 45,000 billion VND, the total outstanding debt is more than 51,000 billion VND. Banks prioritize lending to sectors that are the driving force for socio-economic development of the province. Of which, agriculture and aquaculture account for 25.6%, construction industry accounts for 17.81%, and consumer trade and services account for 56.53%.

This contributes significantly to promoting economic growth, creating jobs, and implementing economic restructuring in Phu Yen (in 2023, the province's GRDP will grow by 9.16%; of which, the agriculture and fishery sector will account for 24.14%, the construction industry sector will account for 29.42%, and the service sector will account for 42.08%).

Leading in administrative reform and digital transformation

In recent times, the banking industry has always been at the forefront of administrative reform, applying the achievements of the 4.0 industrial revolution in management and administration, creating quality products and services to meet the needs of economic entities. The banking industry has promoted digital transformation, invested heavily in building technology infrastructure, shifting from traditional banking to e-banking and now digital banking, building a counterless banking system, especially in the field of non-cash payments.

Source: State Bank of Vietnam, Phu Yen branch. Graphics: VIET AN

This helps to significantly reduce transaction time and effort, speed up capital turnover, shorten goods circulation time and production and business cycles, thereby improving operational efficiency in the economy in Phu Yen.

Digital transformation of the banking sector in the province has changed people's awareness of the importance of non-cash payments in particular and online transactions in general, thereby proactively and actively participating in making an important contribution to the development of e-commerce and online public administrative services, thereby promoting the development of the digital economy and digital society in the area.

Share difficulties with people and businesses

In recent years, in the context of the world and the country being affected by the COVID-19 pandemic, the Russia - Ukraine conflict, Hamas - Israel ... causing disruptions in the supply chain of raw materials, production and consumption of goods. Accordingly, the socio-economic situation in the province has encountered many difficulties. In this context, Phu Yen Banking sector has accompanied, shared and resolved difficulties with people and businesses. The banking system has effectively implemented many policies of the Party, the State and the State Bank of Vietnam such as: interest rate support; exemption and reduction of interest, fees and charges; restructuring of debt repayment terms; maintaining debt groups; simplifying lending procedures, increasing access to loans for people and businesses ...

The banking sector in the area has also implemented policy credit well, contributing to socio-economic development with hunger eradication and poverty reduction and ensuring social security. With 20 policy credit programs that have been and are being implemented, it has helped the poor and policy beneficiaries have conditions to develop production, improve their lives, narrow the gap between rich and poor, create important resources to promote socio-economic development of economically disadvantaged areas, remote areas, rural and mountainous areas, limit black credit, and contribute significantly to the National Target Program on sustainable poverty reduction. Policy credit in the coming time will continue to be promoted, still an important driving force in the implementation of the National Target Program on sustainable poverty reduction, new rural construction, socio-economic development of ethnic minority and mountainous areas...

The banking system has done a good job in social security in the province, accompanying provincial leaders at all levels and associations in many programs: eliminating temporary houses for the disadvantaged; giving gifts to the poor on the occasion of Tet; "Waves and computers" for students; helping children go to school..., with an average annual total value of up to tens of billions of VND from savings in business activities, income sharing of civil servants and workers in the whole industry in the area.

Promoting the tradition of more than 70 years of building and developing the banking industry nationwide, the achievements of 35 years of operation of Phu Yen banking industry since the province was re-established, in the coming time, civil servants and employees of the entire Phu Yen banking industry are determined to effectively implement the Strategy for developing Vietnam's banking industry to 2025 with a vision to 2030 in conjunction with the socio-economic development of the province.

First of all, it is to accompany people and businesses in removing difficulties and obstacles, supporting the recovery of production and business, stabilizing life, gradually developing and expanding investment; building a local banking system that is increasingly developing in both quantity and quality, ensuring safe and effective operations, meeting the increasing demand for capital and services in the province.

In the coming time, Phu Yen Banking sector will continue to accompany people and businesses in removing difficulties and obstacles, supporting production and business recovery, stabilizing life, gradually developing and expanding investment...

TRAN VAN TRI - DAO NGO C MINH

( State Bank of Vietnam , Phu Yen branch )