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

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

On March 25, in Can Tho City, the State Bank of Vietnam (SBV) held 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 activities to 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 said that the provinces and cities in the region have developed rice and seafood production and trading activities, many products contribute significantly to the national export turnover. However, credit growth in this region is lower than the national average and the capital mobilized locally by credit institutions only meets about 77% of credit growth in the region.

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

Meanwhile, the Government has set an economic growth target of over 8% this year to prepare for a period of double-digit growth in the coming years. The Government has also assigned growth targets to each province and city, with those in the 14-region region being assigned a growth target of 8-9%.

Governor of the State Bank of Vietnam Nguyen Thi Hong said that the banking sector will transfer capital from other regions of the country to areas lacking capital to support localities in the Mekong Delta in general, and Region 14 in particular, to promote economic growth.

In addition, the State Bank continues to synchronously implement solutions on monetary and credit policy management, focusing on directing local credit institutions to promote credit growth in the region, on the basis of closely following the policies, resolutions and socio-economic development programs of the locality.

Accordingly, credit growth will be promoted from the beginning of 2025, directing credit to production and business sectors, priority sectors, and growth drivers; and credit will be strictly controlled in sectors with potential risks.

In particular, credit institutions build credit products for industries and fields that are suitable for the credit institution's business strategy and ability to balance resources.

At the same time, promote credit investment in feasible key projects and works to serve the socio-economic development of the region and the locality's strong sectors and fields, focusing on promptly meeting the loan capital needs of people and enterprises producing, processing, purchasing, storing and consuming key export products.

The Governor also directed banks to continue implementing solutions to stabilize deposit interest rates and reduce costs, and increase the application of information technology to reduce lending interest rates to support businesses to expand and develop production and business.

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

Governor of the State Bank of Vietnam Nguyen Thi Hong said that this time commercial banks will launch a credit package worth 100,000 billion VND for loans for agriculture, forestry and fisheries. Over the past two years, this preferential interest rate credit package has increased from 15,000 billion VND to 30,000 billion VND, 60,000 billion VND and this year the value will continue to be increased to support industries with key export products.

Businesses “cannot live without banks”

Recognizing the active and effective support of the banking sector in recent times, 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 promoting the local economy.

"Businesses cannot operate without banks, banks always accompany the ups and downs of businesses," said Mr. Nguyen Van Nhut - Director of Hoang Minh Nhut Rice Company, and highly appreciated the efforts of banks to stabilize and reduce interest rates in recent times, because interest costs account for a very large proportion in rice production and business activities. However, he also recommended that businesses, in order to access bank capital, need to have a clear and transparent financial plan and production and business plan.

At the Conference, businesses also reported to competent authorities to remove regulations related to bank mortgage activities, thereby allowing banks to flexibly use assets to secure loans instead of only prioritizing the use of real estate. Businesses also hope that banks will have more preferential credit packages, flexible foreign currency interest rates to create conditions for export enterprises to develop...

Sharing with reporters of Banking Times on the sidelines of the conference, representatives of banks said that the Mekong Delta and Region 14 are areas with great potential, especially strengths in the rice and seafood industries. Therefore, banks all want to expand their business in the region, thereby contributing to promoting the socio-economic development of localities in the region.

Accordingly, in the coming time, banks will closely follow the capital and banking service needs of people and businesses to serve; expand loans, support businesses, business households, and cooperatives according to different needs...

Lending by issuing cards to farmers

Le Hong Phuc – Deputy General Director of Agribank said that banks do not only use real estate as collateral. If this area did not have mortgages of goods, factories, future assets, etc., it would not be able to have the large outstanding debt at present.

In 2025, Agribank will allocate VND225 trillion in resources, with many preferential credit packages with loan interest rates about 2% lower than the average interest rate of this bank. The Mekong Delta, of which region 14 with five cities and provinces is a special area in the bank's business activities. Agribank also said it will expand modern banking services, lending through the issuance of domestic credit cards to expand customers to each farming household and individual business.

Governor Nguyen Thi Hong presents Decisions to the Board of Directors of the State Bank of Vietnam, Region 14 Branch - Photo: Duc Khanh

Governor: Streamlining the apparatus still ensures a smooth system

At the Conference, Governor of the State Bank of Vietnam Nguyen Thi Hong presented the Decisions on transfer and appointment to the positions of Deputy Directors of the State Bank of Vietnam, Region 14 Branch to Mr. Ly Nhat Truong - Director of the State Bank of Vietnam, Vinh Long Branch; Le Thanh Tien - Deputy Director of the State Bank of Vietnam, Hau Giang Branch; Tran Van Duong - Deputy Director of the State Bank of Vietnam, Soc Trang Branch; Ho Canh Liem - Head of the Payment and Synthesis Department of the Payment Department. Previously, Mr. Tran Quoc Ha - Director of the State Bank of Vietnam, Can Tho Branch was awarded the Decision on acting Director of the State Bank of Vietnam, Region 14 Branch.

Governor of the State Bank of Vietnam Nguyen Thi Hong said that recently the banking sector has restructured the system from 63 branches of the State Bank of Vietnam in provinces and cities into 15 regions. Due to the specific nature of its operations, the banking sector has implemented many solutions in streamlining the apparatus in the banking sector, including two operational trials before March 2025 and up to this point the system has been operating smoothly.

Actively mobilize local capital

Mr. Tran Quoc Ha - Acting Director of the State Bank of Vietnam, Region 14 Branch, said that in the context of the VND mobilization interest rate remaining at a low level, with lower attractiveness compared to other profitable channels, capital mobilization in the whole region is estimated at more than VND 289,000 billion, down 2.02% compared to the end of 2024, accounting for 31.87% of total mobilization in the Mekong Delta region and about 1.91% of total capital mobilization nationwide.

The State Bank of Vietnam, Region 14 branch, continues to actively direct and supervise credit institutions in implementing the restructuring project associated with bad debt settlement; Effectively provide payment means; Strengthen solutions to promote non-cash payments associated with building a digital society; Strengthen inspection and supervision of compliance with foreign exchange and gold trading activities, contributing to stabilizing the monetary, foreign exchange and gold markets in the area...

In particular, the Regional State Bank directs local credit institutions to promote credit growth, ensure adequate and timely supply of capital to serve production and business of organizations and individuals in the locality, and prevent projects and plans that are eligible for loans from being unable to access bank credit capital, credit mechanisms and policies, and local growth drivers.

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