Capital will be redirected from other regions to the Mekong Delta.

The banking sector will reallocate capital from other regions of the country to the provinces and cities of Can Tho, Hau Giang, Vinh Long, Soc Trang, and Bac Lieu to develop production and business, and promote economic growth.

On March 25th, in Can Tho City, the State Bank of Vietnam (SBV) organized a conference to promote bank credit to contribute to economic growth in Region 14 (including the provinces and cities of Can Tho, Hau Giang, Vinh Long, Soc Trang , and Bac Lieu).

Governor of the State Bank of Vietnam, Nguyen Thi Hong, highly appreciated the activities of credit institutions in Region 14 in implementing monetary and credit policies, ensuring banking operations provide capital and services to the people - Photo: Duc Khanh

Increase lending to priority sectors.

Speaking at the conference, Governor of the State Bank of Vietnam, Nguyen Thi Hong, stated that provinces and cities in the region have highly developed rice and seafood production and business activities, with many products making significant contributions to national export turnover. However, credit growth in this region is lower than the national average, and locally mobilized capital by credit institutions only meets about 77% of the region's credit growth needs.

Statistics show that, as of the end of February 2025, the total outstanding credit in the provinces and cities of the region was estimated at VND 387,350 billion, an increase of 0.42% compared to the end of 2024 (lower than the overall credit growth rate of the whole country at 0.8%), accounting for 31.73% of the total outstanding credit in the Mekong Delta region, and approximately 2.46% of the total outstanding credit of the economy .

Meanwhile, the government aims for economic growth of over 8% this year to prepare for a period of double-digit growth in the following years. The government has also assigned growth targets to each province and city, with provinces and cities in the 14 regions being given targets of 8-9%.

Governor of the State Bank of Vietnam, Nguyen Thi Hong, stated that the banking sector will reallocate capital from other regions of the country to areas facing capital shortages to support localities in the Mekong Delta in general, and Region 14 in particular, thereby promoting economic growth.

In addition, the State Bank of Vietnam continues to implement a comprehensive set of solutions regarding monetary and credit policy management, focusing on directing credit institutions in the region to promote credit growth, based on and closely adhering to the policies, resolutions, and socio-economic development programs of the locality.

Accordingly, credit growth should be promoted from the beginning of 2025, directing credit towards production and business sectors, priority sectors, and growth drivers; while strictly controlling credit to sectors with potential risks.

In particular, credit institutions develop credit products for industries and sectors that are consistent with their business strategies and resource allocation capabilities.

At the same time, promote credit investment in feasible key projects and works serving the socio-economic development of the region and the local strengths in various sectors and fields, with a focus on promptly meeting the loan needs of people and businesses involved in the production, processing, procurement, temporary storage, and consumption of key export products.

The Governor also directed banks to continue implementing solutions to stabilize deposit interest rates and reduce costs, and to enhance the application of information technology to lower lending interest rates to support businesses in expanding and developing production and business.

The leaders of Can Tho City and the State Bank of Vietnam chaired the conference - Photo: Duc Khanh

Governor of the State Bank of Vietnam, Nguyen Thi Hong, announced that commercial banks will offer a credit package worth 100 trillion VND for loans to the agricultural, forestry, and fisheries sectors. Over the past two years, this preferential interest rate credit package has increased from 15 trillion VND to 30 trillion VND, then 60 trillion VND, and this year its value will be further increased to support key export industries.

Businesses "cannot survive without banks."

Acknowledging the positive and effective support from the banking sector in the past, businesses in the Mekong Delta region also highly appreciate the credit packages that have helped many businesses have more opportunities to recover and develop production and business, thereby contributing to boosting the local economy.

"Businesses cannot operate without banks; banks are always there to support businesses through their ups and downs," said Mr. Nguyen Van Nhut, Director of Hoang Minh Nhut Rice Company, praising the banks' efforts to stabilize and reduce interest rates in recent times, as interest expenses account for a very large proportion of rice production and business operations. However, he also advised businesses that, in order to access bank capital, they need clear and transparent financial and production/business plans.

At the conference, businesses also raised concerns with the relevant authorities regarding the removal of regulations related to bank mortgage activities, thereby allowing banks to flexibly use assets as collateral for loans instead of prioritizing only real estate. Businesses also hoped that banks would offer more preferential credit packages and flexible foreign currency conversion interest rates to facilitate the development of export businesses…

Speaking to reporters from the Banking Times on the sidelines of the conference, representatives from various banks stated that the Mekong Delta and Region 14 are areas with enormous potential, particularly in the rice and seafood industries. Therefore, the banks all want to expand their business in the region, thereby contributing to the socio-economic development of the localities within the area.

Accordingly, in the coming period, banks will closely monitor the capital and banking service needs of individuals and businesses to serve them; expand lending and support businesses, households, and cooperatives according to their different needs...

Lending to farmers by issuing credit cards.

According to Le Hong Phuc, Deputy General Director of Agribank, the bank does not only use real estate as collateral. Without collateral in the form of goods, factories, future assets, etc., the current large outstanding loan balance would not be possible.

In 2025, Agribank will allocate 225 trillion VND, with many preferential loan packages offering interest rates approximately 2% lower than the bank's average interest rate. The Mekong Delta, including the 14 provinces and cities in Zone 14, is a particularly important area for the bank's business operations. Agribank also stated that it will expand its modern banking services, including lending through the issuance of domestic credit cards, to reach more individual farmers and business owners.

Governor Nguyen Thi Hong presents the Decisions to the leadership of the State Bank of Vietnam's Regional Branch 14 - Photo: Duc Khanh

Governor: Streamlining the organizational structure will still ensure the smooth functioning of the system.

At the conference, Governor of the State Bank of Vietnam, Nguyen Thi Hong, presented the Decisions on the transfer and appointment of the following individuals to the positions of Deputy Director of the State Bank of Vietnam's Regional Branch 14: Mr. Ly Nhat Truong - Director of the State Bank of Vietnam's Vinh Long branch; Mr. Le Thanh Tien - Deputy Director of the State Bank of Vietnam's Hau Giang branch; Mr. Tran Van Duong - Deputy Director of the State Bank of Vietnam's Soc Trang branch; and Mr. Ho Canh Liem - Head of the Payment System and Synthesis Department under the Payment Department. Prior to this, Mr. Tran Quoc Ha – Director of the State Bank of Vietnam's Can Tho branch – was presented with the Decision appointing him as Acting Director of the State Bank of Vietnam's Regional Branch 14.

Governor of the State Bank of Vietnam, Nguyen Thi Hong, stated that the banking sector has recently restructured its system, reducing the number of provincial and city branches of the State Bank of Vietnam to 15 regions. Due to the unique nature of its operations, the banking sector has implemented numerous solutions to streamline its organizational structure. Two trial operation phases were conducted before March 2025, and the system is now operating smoothly.

Actively mobilize local funding sources.

Mr. Tran Quoc Ha, Acting Director of the State Bank of Vietnam's Regional Branch 14, stated that, in the context of low VND deposit interest rates and lower attractiveness compared to other profit-generating channels, capital mobilization in the entire region is estimated at over 289,000 billion VND, a decrease of 2.02% compared to the end of 2024, accounting for 31.87% of total mobilization in the Mekong Delta region and approximately 1.91% of total national capital mobilization.

The State Bank of Vietnam's Regional Branch 14 continues to actively direct and supervise credit institutions in implementing the restructuring plan associated with handling bad debts; effectively provide payment instruments; strengthen solutions to promote cashless payments associated with building a digital society; strengthen inspection and supervision of compliance with foreign exchange and gold trading regulations, contributing to the stability of the monetary, foreign exchange, and gold markets in the region...

Specifically, the State Bank of Vietnam's regional branch directs credit institutions in the area to promote credit growth, ensuring sufficient and timely supply of capital to serve the production and business activities of organizations and individuals in the area, preventing the situation where eligible projects and plans cannot access bank credit, and ensuring that credit mechanisms, policies, and growth drivers of the locality are fully utilized.

Source: https://thoibaonganhang.vn/se-dieu-chuyen-von-o-cac-vung-khac-ve-dong-bang-song-cuu-long-161788.html