The capital raised has not met the lending needs.
Over the past period, credit institutions in the area under the jurisdiction of the State Bank of Vietnam (SBV) Region 3 (including the provinces of Hoa Binh, Son La, Dien Bien , and Lai Chau) have made efforts to mobilize capital to provide funding for production and business, and to contribute to infrastructure development. The operational network includes 27 credit institutions with 668 transaction points in communes, covering a wide range of districts, cities, and remote areas. Credit resources have been invested in sectors and fields that are the region's strengths; policy beneficiaries have access to preferential state credit to develop production and business, and achieve sustainable poverty alleviation.
However, despite the achievements, banking operations still face many difficulties and challenges. Locally mobilized capital only meets about 84% of the credit demand in the area. By the end of February 2025, the outstanding credit balance of credit institutions at the State Bank of Vietnam Region 3 is estimated at VND 134,571 billion, a decrease of 1.61% compared to the end of 2024. Businesses and individuals still report difficulties in production, business, and accessing bank credit.
Sharing about the difficulties in borrowing from banks, Mr. Nguyen Ngoc Son, Standing Vice Chairman of the 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 to 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%), with low production and business capital, and an imbalance in the proportion of businesses in different industry groups, mainly operating in the construction and service sectors, thus facing many difficulties in accessing loan capital. Many businesses do not meet the asset collateral requirements or are not eligible for loans, leading to limitations in expanding production, business, and investment development.”
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Military Commercial Joint Stock Bank (MB) is implementing preferential interest rate programs to support businesses and individuals in borrowing capital for production and business in the medium and long term. Photo: PHUONG THAO |
An additional nearly 22 trillion VND in credit was provided.
According to Deputy Governor of the State Bank of Vietnam, Pham Thanh Ha, the State Bank of Vietnam has set a nationwide credit growth target of 16% this year to achieve the government's minimum economic growth target of 8%. For provinces within the jurisdiction of the State Bank of Vietnam Region 3, achieving this overall growth requires an additional credit volume of nearly VND 22,000 billion in 2025 (compared to a VND 9,600 billion increase in 2024). Therefore, this is a challenge requiring concerted efforts from the entire banking sector, cooperation from customers and businesses, and support from local authorities.
According to Mr. Nguyen Dinh Viet, Deputy Secretary of the Provincial Party Committee and Chairman of the People's Committee of Son La province, all provinces within the jurisdiction of the State Bank of Vietnam Region 3 aim for economic growth exceeding 8% in 2025. To contribute to achieving this goal, the State Bank of Vietnam must ensure liquidity for the economy, strengthen capital mobilization, especially medium- and long-term capital, to create resources for socio-economic development tasks. Solutions are needed to promote credit growth commensurate with the province's strong potential; boost the mobilization of idle capital from the public; and manage flexibly to ensure sufficient 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 that are the strengths of the locality, while ensuring credit quality. In addition, credit institutions need to accelerate cost reduction, thereby lowering lending interest rates to support people and businesses.
Businesses in the area hope that the State Bank of Vietnam will encourage credit institutions to expand mortgage lending based on future assets, as very few banks currently apply this form of lending. In addition, lending based on business plans and income sources should be promoted, instead of relying solely on collateral such as land and vehicles.
Representatives from the Vietnam Foreign Trade Commercial Bank (Vietcombank) proposed that the State Bank of Vietnam (SBV) pay attention to and support Vietcombank branches, especially the younger branches in the area under the jurisdiction of the SBV Region 3. They also requested favorable conditions for Vietcombank to implement preferential programs and policies to support businesses. Agribank, VietinBank, and BIDV committed to continuing to promote lending to local strengths such as hydropower, agriculture, and tourism. They also pledged to prioritize lending to policy beneficiaries to contribute to socio-economic development, poverty reduction, and improving the lives of people in the area.
To support medium- and long-term production and business loans in the area, Military Commercial Joint Stock Bank (MB) has implemented a preferential interest rate program to meet diverse business loan needs and proactively develop supply chain financing policies. Accordingly, the "Super-Fast Loan - Accelerate Business" product helps individuals and business households access capital more easily with preferential interest rates starting from 5.5%/year; a maximum loan amount of 90% of capital needs; and proactive disbursement through the MBBank application.
A representative from Thanh Long Private Enterprise, a distributor of gasoline and oil located at Group 15, Tan Thinh Ward, Hoa Binh City, shared: The company's annual revenue is approximately 1,500 billion VND, and it currently has a loan of 70 billion VND from MB Bank's Hoa Binh Branch. The customer stated that they have been transacting with MB Bank's Hoa Binh Branch since 2018 and have consistently received advice from MB Bank staff on suitable financial solutions. Furthermore, the bank has supported the business in accessing and applying banking technologies 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 area under the jurisdiction of the State Bank of Vietnam Region 3 to focus on investing credit in feasible key projects and works serving socio-economic development and key agricultural products (forestry products, rice, fruits and vegetables); and to leverage the support of localities and industry associations to develop credit in the area. Credit growth should achieve targets while ensuring efficiency, compliance with legal regulations, system safety, and minimizing bad debts. Furthermore, they should continue to simplify credit granting procedures, apply digital transformation to credit granting processes, and minimize unnecessary expenses to create resources for reducing lending interest rates and supporting people and businesses.
Source: https://www.qdnd.vn/kinh-te/tai-chinh/thuc-day-tin-dung-khu-vuc-tay-bac-822196
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