Yen Bai province's banking sector affirms its role as the lifeblood of the economy

Yen Bai - The State Bank of Vietnam, Yen Bai Province Branch, regularly directs credit institutions to promote capital mobilization in the locality, exploit capital sources outside the province, and capital sources to regulate the system; increase credit growth associated with improving credit quality...

Customers transact at Agribank Yen Bai Branch.

>> Yen Bai Bank strives to complete credit growth plan

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>> Agribank Yen Bai Province Branch affirms its role as a "pillar" of the economy

In 2024, the world and regional situation continues to be complicated and unpredictable, the world economy continues to grow slowly, global production and trade are difficult, affecting socio-economic development and people's lives. In that context, with the role of the lifeblood of the economy, the State Bank of Vietnam (SBV) Provincial Branch has closely followed the direction of the SBV, the Provincial Party Committee, and the Provincial People's Committee to proactively and flexibly operate monetary policy, closely coordinating with fiscal policy and other macroeconomic policies, contributing to controlling inflation and stabilizing the macro-economy.

During the year, the provincial branches of the State Bank regularly directed credit institutions to promote the mobilization of local capital, exploit capital sources outside the province, and capital sources to regulate the system; increase credit growth associated with improving credit quality; focus credit capital on lending to serve production and business, small and medium enterprises, lending to the fields of agricultural and rural development, and production of export goods; and meet the loan needs of poor households, near-poor households, and social policy beneficiaries.

According to the Provincial Branch of the State Bank of Vietnam, by December 31, 2024, the total capital of bank branches and people's credit funds in the province is estimated to reach VND 55,000 billion, an increase of 10.23% compared to the end of 2023. Mobilized capital has grown quite well, helping banks and credit institutions balance capital sources, improve liquidity and effectively implement capital security solutions for the economy. Total outstanding loans to the economy reached VND 49,000 billion, an increase of 17.99% compared to the end of 2023, completing and far exceeding the minimum outstanding loan growth target set for the year of 10-12%. Credit structure continues to focus on priority areas contributing to economic growth.

In particular, with the goal of unblocking capital sources and developing production and business, the industry has strengthened solutions to grasp and promptly resolve difficulties of enterprises through the Bank - Enterprise Connection Program. Up to now, commercial bank branches have committed to supporting loans for 1,776 customers, the committed loan amount is VND 27,692 billion and loan turnover is VND 74,616 billion; committed to supporting interest rate reduction for 7,381 customers with outstanding debt of VND 6,406 billion; extended debt for 47 customers with an amount of VND 550 billion and restructured old loans to appropriate levels for 198 enterprises with outstanding debt of VND 1,967 billion.

In 2024, the efforts and dedication of commercial banks in supporting people and businesses affected by storm No. 3 were also recognized. Following the direction of the State Bank of Vietnam's provincial branches, credit institutions in the area have implemented measures to remove difficulties for customers such as restructuring debt repayment terms, exempting and reducing interest rates, and providing new loans to restore production and business.

According to data, to date, banks have restructured the repayment period for 201 customers with outstanding loans of VND31.4 billion; exempted and reduced interest rates for 4,453 customers with outstanding loans of VND4,865.5 billion; and provided new loans to 3,088 customers with outstanding loans of VND544.3 billion. The above measures have initially supported customers to overcome the consequences of storm No. 3, accessing preferential loans to restore production and business.

Along with the commercial banking system, the Social Policy Bank system in the province also quickly stepped in to support people to soon stabilize their lives and reproduce after the storm, effectively implementing preferential credit policies to restore socio-economic development.

Mr. Nguyen Thanh Hai - Director of the Provincial Branch of the Social Policy Bank said: "Immediately after the natural disaster occurred, the unit reviewed the demand for loans from policy credit programs to overcome the damage after the natural disaster of the people to submit to the Central Social Policy Bank for additional capital allocation. The total capital demand is 350 billion VND, of which 120 billion VND is met from recovered capital and remaining capital, 230 billion VND has been submitted to the Central Social Policy Bank for additional allocation; consulted with the Provincial People's Committee to transfer an additional 40 billion VND for lending to restore production and business after the storm. After the storm, the Social Policy Bank focused on disbursing to 2,143 customers borrowing capital to restore the economy and stabilize their lives with an amount of over 135.5 billion VND, focusing on lending programs: clean water and environmental sanitation in rural areas, poor households, near-poor households, households newly escaped from poverty, and job creation. The above results have really helped poor households and beneficiaries. policy to invest capital in production, increase income, ensure life and gradually escape poverty".

By 2025, the entire sector strives to increase credit growth for the economy compared to 2024 from 10% to 12% or more; the ratio of bad debt on the balance sheet to total outstanding debt is below 2%. The State Bank of Vietnam's provincial branches continue to proactively grasp developments in the monetary, credit, banking, gold and foreign exchange trading situation in the area; direct bank branches and people's credit funds to implement solutions and forms of capital mobilization and credit growth; create favorable conditions for enterprises, production and business households and social policy beneficiaries to access bank credit capital to develop production and business, export production, and circulation of goods.

At the same time, continue to implement credit programs and policies to remove difficulties, support economic and social recovery and development; promote activities connecting banks and enterprises to promptly support the removal of difficulties and obstacles for enterprises. At the same time, promote the development of modern payment services, promote digital transformation, non-cash payments and ensure the safety of payment activities; strengthen state management of currency, banking and foreign exchange activities. Proactively connect social security activities, build new rural areas, effectively support and contribute to local socio-economic development.

Outstanding loans for agricultural and rural development according to Decree No. 55/2015/ND-CP and Decree No. 116/2018/ND-CP of the Government reached VND 20,800 billion, up 7.87% compared to December 31, 2023, accounting for 42.45% of total outstanding loans; outstanding loans for the export sector reached VND 1,050 billion, accounting for 2.1% of total outstanding loans; outstanding loans for small and medium enterprises reached VND 7,800 billion, up 6.01% compared to December 31, 2023, accounting for 15.92% of total outstanding loans; outstanding loans for policy credit programs reached VND 5,400 billion, up 10.9% compared to December 31, 2023.

Van Thong

Source: http://baoyenbai.com.vn/12/343718/Nganh-ngan-hang-tinh-Yen-Bai-khang-dinh-vai-tro-huyet-mach-nen-kinh-te.aspx