Promoting credit in the Northwest region

Mobilized capital does not meet lending needs

In recent times, credit institutions in the State Bank of Vietnam (SBV) Region 3 (including the provinces of Hoa Binh, Son La, Dien Bien, Lai Chau) have made efforts to mobilize capital to provide capital for production and business, and participate in infrastructure development resources. The network of operations has the presence of 27 credit institutions with 668 transaction points in communes covering all districts, cities, remote areas. Credit resources have been invested in industries and fields that are typical strengths of the region; policy beneficiaries have access to preferential credit capital from the State to develop production and business, and escape poverty sustainably.

However, in addition to the achieved results, banking activities still face many difficulties and challenges, with locally mobilized capital only meeting about 84% of the credit capital demand in the area. By the end of February 2025, outstanding credit balances of credit institutions at the State Bank of Vietnam in Region 3 were estimated at VND 134,571 billion, down 1.61% compared to the end of 2024. There are still businesses and people reporting difficulties in production, business and access to bank credit capital.

Sharing about the difficulties in borrowing from banks, Mr. Nguyen Ngoc Son, Permanent Vice President of Son La Business Association, Chairman of the Board of Directors and Director of Quynh Ngoc Joint Stock Company, said: “Although the economy is on the path of recovery and development, businesses in Son La province still face difficulties and limitations. The majority of businesses in the province are small and micro-sized (accounting for nearly 97%), have low production and business capital, the proportion of businesses in industry groups is still unbalanced, mainly operating in the construction and service sectors, so they face many difficulties in accessing loans. Many businesses do not meet the requirements for collateral or are not eligible for loans, leading to limitations in expanding production, business, and investment and development”.

The Military Commercial Joint Stock Bank (MB) has implemented preferential interest rate programs to support businesses and people in borrowing capital for production and business in the medium and long term. Photo: PHUONG THAO

Increased credit by nearly 22,000 billion VND

Deputy Governor of the State Bank of Vietnam Pham Thanh Ha said that the State Bank of Vietnam has set a national credit growth target of 16% this year to achieve the minimum economic growth target of 8% set by the Government. For the provinces in the State Bank of Vietnam Region 3, to achieve this overall growth, it is necessary to increase the credit scale by nearly 22,000 billion VND in 2025 (while in 2024, the credit scale of Region 3 increased by 9,600 billion VND). Therefore, this is a challenge that requires the efforts of the entire banking industry, cooperation from customers, businesses and support from localities.

According to Mr. Nguyen Dinh Viet, Deputy Secretary of the Provincial Party Committee, Chairman of the People's Committee of Son La province, the provinces in the area of ​​the State Bank of Vietnam Region 3 all set a target of economic growth of more than 8% in 2025. To contribute to achieving that goal, the State Bank of Vietnam must ensure liquidity for the economy, strengthen capital mobilization, especially medium-term and long-term capital to create resources to carry out socio-economic development tasks. There should be solutions to promote credit growth commensurate with the province's strong potential; promote the mobilization of idle capital from the people; and operate flexibly to ensure adequate and timely capital for investment needs. Mr. Nguyen Dinh Viet requested the State Bank of Vietnam Region 3 to direct credit institutions to focus on priority areas, which are the strengths of the locality, while ensuring credit quality. In addition, credit institutions need to promote the reduction of operating costs, thereby reducing lending interest rates to support people and businesses.

Local businesses hope that the State Bank of Vietnam will encourage credit institutions to expand the form of mortgage loans based on future assets, because currently very few banks apply this form of lending. In addition, banks' lending based on business plans and income sources should also be promoted instead of relying only on collateral such as land, cars, etc.

Representatives of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) proposed that the State Bank of Vietnam pay attention to and support Vietcombank branches, especially young branches in the area of ​​the State Bank of Vietnam Region 3. At the same time, create favorable conditions for Vietcombank to implement incentive programs and policies to support businesses. Agribank, VietinBank and BIDV committed to continue to promote lending to local strengths such as: Hydropower, agriculture, tourism... At the same time, prioritize lending capital to policy beneficiaries to contribute to promoting socio-economic development, hunger eradication, poverty reduction, and improving the lives of local people.

In order to support medium- and long-term production and business loans in the area, the Military Commercial Joint Stock Bank (MB) has implemented a preferential interest rate program, meeting diverse business loan needs and proactively building a supply chain financing policy. Accordingly, the product "Super fast loan - Accelerate business" supports individuals and business households to access capital more easily with preferential interest rates from 5.5%/year; maximum loan amount of 90% of capital needs; proactive disbursement on the MBBank application.

Representative of Thanh Long Private Enterprise - Gasoline and oil distributor, address at Group 15, Tan Thinh Ward, Hoa Binh City, shared: The annual revenue of the enterprise is about 1,500 billion VND and is currently borrowing 70 billion VND from MB Hoa Binh Branch. The customer said that he has been transacting at MB Hoa Binh Branch since 2018 until now and has always been advised by MB staff on appropriate solutions to handle financial needs. At the same time, support businesses to access methods and apply technology in the banking sector to ensure timely capital flow for business operations and favorable growth.

To promote credit growth, Deputy Governor of the State Bank of Vietnam Pham Thanh Ha requested credit institutions in the State Bank Region 3 to focus on credit investment in feasible key projects and works serving socio-economic development and key agricultural products (forestry products, rice, vegetables and fruits); seek support from localities and industry associations to develop credit in the area. Credit growth meets the target but ensures efficiency, compliance with legal regulations, ensures system safety, and limits bad debt. Continue to simplify credit granting processes and procedures, apply digital transformation to credit granting processes; minimize unnecessary expenses to create resources to reduce lending interest rates, support people and businesses...

Source: https://www.qdnd.vn/kinh-te/tai-chinh/thuc-day-tin-dung-khu-vuc-tay-bac-822196