A tripartite cooperation agreement signed between Agribank Binh Thuan, Binh Thuan General Hospital, and VNPT Binh Thuan Business Center

A successful year

In 2023, the State Bank of Vietnam - Binh Thuan Branch (SBV Binh Thuan) resolutely and consistently implemented numerous key solutions to increase deposits and loans, based on the analysis, assessment, and forecast of potential difficulties and challenges. Credit institutions concentrated on lending to prioritized sectors and areas, reducing interest rates, and implementing support policies and solutions to alleviate business difficulties. As of October 31, 2023, deposits witnessed a growth of 6.56% to VND56,203.5 billion, and total outstanding loans escalated by 4.67% to VND83,671.7 billion. The credit capital was primarily funneled into production/business fields, constituting approximately 73.73% of total outstanding loans.

The promotion of non-cash payment and electronic payments continued to ensure safety, efficiency, and transparency. The restructuring of credit institutions, in conjunction with the digital transformation in banking operations, was accelerated to guarantee stable local banking development, enhancing the administrative capacity and financial capacity of people’s credit funds.

Mr. Bui Xuan Chinh, Director of SBV Binh Thuan, said that 2023 marked the second year of implementing the socioeconomic recovery and development program in accordance with Government Resolution 11/NQ-CP. To support local companies in overcoming difficulties and facilitating business recovery and development, the local banking sector coordinated with relevant bodies at the onset of 2023. They informed about credit and monetary mechanisms and policies, actively monitored, understood, handled, and advised on the timely resolution of difficulties and obstacles. This facilitated businesses and people to access and benefit from support policies.

Besides, the banking sector seriously directed and facilitated customers in difficulty to restructure their debt repayment periods and keep their debt classifications unchanged according to Circular 02/2023/TT-NHNN; sped up the 2% interest rate support program as per Decree 31/2022/ND-CP to slash the lending interest; coordinated with relevant agencies to launch the credit program of VND120,000 billion (loans for social housing, worker housing, housing repairing and rebuilding according to Resolution 33/NQ-CP) and the credit program of VND15,000 billion (loans for forestry and fisheries sectors as per Official Dispatch 5631/NHNN-TD dated July 14, 2023). The sector seriously implemented low interest rate ceilings for short-term loans in priority areas; applied customer policies on interest exemption and reduction and cut costs to lower lending interest rates; and reviewed and simplified borrowing procedures and processes, improved the effect of customer credit appraisals and ratings, and facilitated businesses and people to access capital credit.

In addition to the support from the banking industry, businesses themselves also had to try to gain trust from banks to have broader access to capital, especially low-interest funds, Chinh said. “Currently, credit institutions have launched credit ratings criteria to companies. Higher rated customers could access more preferential policies (like credit limits, interest rates and security measures). Therefore, to access a low-interest fund, apart from meeting loan conditions according to general regulations, companies needed to review and restructure operations and improve management capacity. They needed to actively grasp customer policies of banks to consider and select credit programs/products. At the same time, they provided full information and ensured financial transparency for credit institutions to apply soft interest rates for prioritized areas of the SBV as well as customer policies of credit institutions,” he recommended.

Actively addressing challenges, improving integration capacity

Nevertheless, the banking sector of Binh Thuan province still faced numerous challenges, especially credit growth and bad debt ratio reduction. To overcome difficulties and challenges, successfully complete political tasks and support local socioeconomic recovery, in the coming time, the sector will inform and promptly carry out monetary, credit, foreign exchange and noncash payment policies in the province. It will focus on closely coordinating with relevant agencies to implement bank-business connection programs; promote the role of professional working groups in grasping and handling difficulties and obstacles and widening access to capital for companies; actively mobilize and speed up focused lending for prioritized business fields and areas according to governmental policies and effectively apply the credit program of VND120,000 billion for social housing loans and the credit program of VND15,000 billion for agricultural loans.

The banking sector will consistently introduce support solutions, facilitate people and companies to access capital and overcome business difficulties. The sector will focus on restructuring loan terms, keeping debt categories unchanged, and providing interest support; seriously apply regulations on deposit and lending interest rate ceilings, carry out policies on interest exemption and reduction and reduce costs to lower lending interest rates. It will collaborate with relevant bodies to apply interest support policies for innovative startups and SMEs according to the province's SME Support Program for the 2024-2026 period; continue to work with competent agencies to restructure the credit institution system and handle non-performing loans, speed up the noncash payment project in the 2021-2025 period; and raise public awareness and vigilance against criminal and fraudulent tricks and acts.

 To proactively adapt to Industry 4.0, the banking sector of Binh Thuan province will also take advantage of support from parent banks and the SBV to accelerate digital transformation in banking and develop modern payment services together with the non-cash payment development project for the 2021-2025 period and the bank-to-bank payment project for public services and social security payments. The sector will intensify inspection and internal audit, prevent corruption and crime in banking, especially in high-risk areas, to ensure safe and lawful banking operations; effectively carry out assigned tasks according to the SBV’s public administration reform and administrative procedure control plan and enhance the quality of solved administrative procedures for organizations and individuals.