Credit growth is positive.

Since the beginning of the year, amidst a challenging economic environment and the slow recovery of business activities, the banking sector in the province has proactively and flexibly implemented numerous solutions, decisively addressing obstacles and actively supporting the people and businesses. The positive credit growth results affirm the efforts of the entire sector in contributing to the stability and promotion of local economic growth.

Bank employees guide customers through the transaction process. Photo: LE HAO

The highest growth rate in the region 10

As one of the leading banks in the province, Agribank Phu Yen has implemented a comprehensive set of business tasks since the beginning of the year, determined to achieve the assigned targets for deposit growth, loan balances, and service revenue. “Thanks to the efforts of the entire staff, by the end of the first quarter of 2025, Agribank Phu Yen's capital mobilization increased by 5.3%, loan balances increased by 2.1%, and bad debts continued to be controlled within acceptable limits, ensuring credit safety. This is a positive result; because in the same period last year, the branch still recorded a decrease in loan balances in the first two quarters,” said Mr. Phan Thong Thai, Director of Agribank Phu Yen.

Not only Agribank Phu Yen, but from the beginning of 2025 until now, credit institutions in the province have closely followed the directives of the central and local governments to implement many solutions to ensure safe, efficient, and sustainable banking operations, while simultaneously improving credit quality, controlling bad debts, and meeting the capital needs for production and business activities of people and businesses in the area. At the same time, they continue to implement government support policies and preferential credit programs, contributing to local economic growth.

As a result, in the first three months of this year, the total outstanding credit balance in the province reached VND 56,641 billion, an increase of 2.88% compared to the end of 2024, 2.3 times higher than the increase in the same period last year. Credit continued to focus on production and business, priority areas such as agriculture and rural development, small and medium-sized enterprises, supporting industries, and exports. By the end of March 2025, outstanding loans to priority groups reached over VND 31,376 billion, accounting for more than 55% of the total outstanding credit balance; an increase of VND 717 billion, or 2.34%, compared to the end of 2024.

In addition, credit institutions in the area have proactively organized dialogues and direct meetings with customers to promptly resolve difficulties and obstacles, creating favorable conditions for businesses and people to access bank credit to develop production and business. In the first quarter of 2025, bank branches in Phu Yen organized 26 signing and dialogue sessions. Seven branches participated in the bank-business connection program with a total outstanding loan balance of VND 248.47 billion; short-term loan interest rates ranged from 4.4-7.3%/year, and medium- and long-term loan interest rates ranged from 7.2-11%/year.

Graphics: VIET AN

The demand for loans is limited.

According to the State Bank of Vietnam's Regional Branch 10, in the first quarter of 2025, although Phu Yen achieved the highest loan growth rate among the provinces in Region 10, it was still lower than the national average loan growth rate (3.93%). Part of the reason is that, although the province's economy has shown signs of recovery, there hasn't been a clear breakthrough, leading to limited demand for loans from individuals and businesses. Currently, only a handful of businesses in the province have outstanding loans exceeding 100 billion VND. Many businesses proactively approached banks but subsequently did not borrow further because they lacked new production and business plans or were still considering the investment's effectiveness.

"Previously, banks 'took to lend, and knelt to collect,' but now they 'kneel to lend.' Businesses only need to meet the conditions, and banks will immediately approach them, enticing them to borrow capital," shared Phan Thong Thai, Director of Agribank Phu Yen.

In 2025, the banking sector aims for a credit outstanding growth of approximately 12-14% in the province compared to the end of 2024. To achieve this goal, the State Bank of Vietnam's Regional Branch 10 will continue to monitor and understand the socio-economic situation and banking activities in the area to promptly advise local Party committees and authorities to coordinate with the banking sector in implementing appropriate credit policies and programs. Simultaneously, it will focus on directing credit institutions to maintain stable interest rates, continue reviewing and simplifying procedures, and create the most favorable conditions for people and businesses to access capital.

Representatives from other commercial banks also stated that they are now proactively going door-to-door to introduce products and services, bringing credit closer to the people. In many rural areas, bank officials go down to villages and hamlets, where the population is concentrated, to introduce credit policies and advise on suitable loans. However, finding customers who meet the eligibility criteria and have a need for loans is not easy.

This is also the general situation of the banking sector in the provinces of Region 10. “Although banks in the region are actively implementing solutions to increase credit growth, the growth rate of outstanding loans in this region remains lower than the national average. The main reason is the difficulties faced by businesses and individuals in production and business; many businesses are downsizing or ceasing operations, thus having no need for loans. In addition, some customer groups have a need for loans but do not meet the loan eligibility requirements due to limited financial capacity and a lack of viable business plans,” said Mr. Bui Huy Tho, Director of the State Bank of Vietnam's Region 10 branch.

Source: https://baophuyen.vn/kinh-te/202504/tin-dung-tang-truong-tich-cuc-2bf4c62/