Highest credit growth in the past 5 years: Creating momentum for production and business development

BAC NINH - Since the beginning of the year, the credit picture of Bac Ninh province has improved in both quality and quantity, with the highest growth rate in the past 5 years. This figure demonstrates the proactiveness and determination of the banking sector in directing the disbursement of loan capital along with the joint efforts of the business community and people, contributing to promoting the socio-economic development of the province.

Directing capital flows to priority sectors

With the aim of maintaining its role as the lifeblood of the economy, the State Bank carries out the key tasks of the sector, including encouraging credit institutions to continue to reduce costs, reduce lending interest rates, support production and business; increase safe and effective credit growth, and direct credit to priority sectors and areas and economic growth drivers. In recent times, the system of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) in the province has always been a pioneer in effectively implementing the orientations and policies of the Government, the province and the State Bank. Currently, the total outstanding debt of 5 Vietcombank branches (Vietcombank Bac Giang , Vietcombank Tay Bac Giang, Vietcombank Bac Ninh, Vietcombank Kinh Bac and Vietcombank Nam Bac Ninh) has reached nearly 60,000 billion VND.

Many businesses in the province have access to bank capital to invest in production development. Photo: Production line of IFC VINA Plastic Packaging Materials Joint Stock Company, Thuan Thanh II Industrial Park.

According to Ms. Nguyen Thi Thu Huong, Deputy Director of Vietcombank Bac Ninh Branch, since the beginning of the year, the Branch has appraised and disbursed loans with a limit of hundreds of billions of VND to support businesses and people with more capital to invest in production development. As of June 30, the Branch had a total outstanding debt of more than VND 22,622 billion, an increase of VND 757.2 billion compared to the end of 2024, and is also the unit with the highest outstanding debt in the Vietcombank system in the whole province.

Identifying the important role of capital, as a premise for enterprises to carry out production and business activities, the Vietnam Joint Stock Commercial Bank for Investment and Development, Bac Giang Branch promptly appraised documents and disbursed loans. Mr. Ung Viet Anh, Deputy Director of the Vietnam Joint Stock Commercial Bank for Investment and Development, Bac Giang Branch, said that in 2025, the unit will continue to be one of the leading banks in supporting capital for business development, with many preferential credit packages and diverse support programs. The unit is committed to continuing to adjust appropriate interest rates to increase customer access. By the end of June this year, the total outstanding debt of the Branch reached more than 14 trillion VND, an increase of 2 trillion VND compared to the end of 2024.

Not only state-owned commercial banks, credit institutions and joint-stock commercial banks in the province have been focusing on allocating capital to meet the needs of economic sectors, especially directing capital flows into priority and key areas to create momentum and promote the province's socio-economic development in the new period.

Promote production and business

According to the State Bank's recent interest rate report, lending interest rates are remaining low. The average short-term lending interest rate in VND for priority sectors remains at around 3.9% per year, lower than the maximum short-term lending interest rate as prescribed by the State Bank (4% per year). The average lending interest rate for new loans decreased by 0.64 percentage points to 6.24% per year. In the coming time, banks will continue to make efforts to reduce lending interest rates to support people and businesses, promoting economic development.

In the first 6 months of 2025, Bac Ninh province's credit picture had a breakthrough, with more than 350 trillion VND of total outstanding debt transferred to all economic sectors, an increase of 14.7% compared to the end of 2024, the highest growth rate in the past 5 years; bad debt accounted for only 1.2% of total outstanding debt, lower than the limit allowed by the State Bank.

Mr. Nguyen Manh Tuan, Director of Phong Phu BN Paper Company Limited, Vo Cuong Ward, specializing in the production and processing of industrial paper, said that in order to focus on production to promptly meet signed orders, the Company completed procedures to borrow working capital and was approved by Vietcombank Bac Ninh Branch for a loan limit of VND 11.5 billion, interest rate of 5.1%/year. With a suitable interest rate and loan limit, it is a premise for the Company to continue expanding production, increasing revenue and creating stable jobs for employees.

According to Mr. Ta Thanh Long, Director of the State Bank of Vietnam, Branch 12, Bac Ninh is a dynamic economic region of the country, with great influence thanks to its outstanding development in the fields of industry, trade - services and urbanization, contributing greatly to economic growth, attracting foreign investment and creating jobs. Carrying out two tasks in parallel, both pushing capital into the economy and ensuring the safety of credit activities, the Branch directed credit institutions to effectively deploy support solutions, creating favorable conditions for customers to access capital sources on the basis of increasing the application of technology and digital transformation to speed up the speed and time of processing customer requests, ensuring safe operations. At the same time, actively carry out bank - business connection activities in appropriate forms to promptly grasp and remove difficulties and problems of customers.

With many solutions to support production and business activities, and to clear capital flows under the direction of the Government, along with the drastic management of tight, cautious, and flexible monetary policies by all levels and sectors, the credit picture of Bac Ninh province has a balance between capital mobilization and lending, along with both quality and quantity. It is not subjective to affirm that credit investment from the figure of more than 350 trillion VND is the lever for the rise in the credit growth chart of the entire industry in 2025. Along with the strong movements of the economy, credit capital will accompany customers on the path of development, contributing to promoting the overall socio-economic development of the whole province.

Article and photos: Ha Linh

Source: https://baobacninhtv.vn/tin-dung-tang-truong-cao-nhat-5-nam-qua-tao-luc-day-phat-trien-san-xuat-kinh-doanh-postid421857.bbg