(VLO) The State Bank of Vietnam (SBV) held a conference on “Promoting bank credit to contribute to economic growth in Region 14”. Thereby, it affirmed that in the coming time, it will focus on developing a variety of bank credit products suitable for each type and production and business needs of people and enterprises; strengthening administrative reform, creating favorable conditions for people and enterprises to access bank credit capital.

State Bank Region 14 needs to step up the implementation of credit programs and policies. Photo: HUYNH THANH THIEN

Timely supply of sufficient capital for production and business

Accordingly, the State Bank of Vietnam Region 14 includes 5 provinces and cities: Can Tho, Hau Giang, Vinh Long, Soc Trang and Bac Lieu. According to the State Bank of Vietnam Region 14, in 2024, the total GRDP value of Region 14 will reach about 430.98 trillion VND (at current prices), accounting for about 31% of the GRDP of the Mekong Delta region.

Of which, Can Tho 133.06 trillion, Hau Giang 68.46 trillion, Vinh Long 83.68 trillion, Soc Trang 80.15 trillion, Bac Lieu 65.63 trillion. GRDP growth rate reached from 5.65-8.76%. GRDP per capita reached 83.25 million VND, higher than the average GRDP per capita of the Mekong Delta region of 80.7 million VND.

Also according to the report of the State Bank of Region 14, implementing the policy of the National Assembly and the Government, on the basis of the State Bank continuing to maintain the operating interest rates, strengthening solutions to contribute to lowering interest rates to remove difficulties for the economy, businesses and people.

Accordingly, the State Bank of Region 14 continues to direct credit institutions to reduce costs to reduce lending interest rates; publicize average lending interest rates, information on credit packages, programs, and banking products for customers to refer to when accessing loans.

At the same time, regularly monitor and recommend credit institutions to apply rates higher than the average in the area. As a result, the VND lending interest rate in the region has decreased compared to the end of 2023 (a decrease of 0.8-1.8%/year).

According to Governor of the State Bank of Vietnam Nguyen Thi Hong, regional credit ensures sufficient and timely supply of capital to serve production and business activities of organizations and individuals in the area, preventing projects and plans that are eligible for loans from being unable to access bank credit, credit mechanisms and policies, and local growth drivers.

Total outstanding debt in the whole region at the end of February reached more than 387 trillion VND, an increase of 0.42% compared to the end of 2024, accounting for 32.08% of total outstanding debt in the Mekong Delta region and 2.46% of total outstanding debt of the economy.

Removing difficulties, promoting credit growth

Governor of the State Bank of Vietnam Nguyen Thi Hong directed the tasks and solutions of State Bank Region 14 in the coming time.

According to the State Bank of Region 14, although credit serving the needs of organizations and individuals in the area has maintained growth, contributing to local socio-economic growth, the growth rate is still lower than that of the whole country. The main reason comes from the low demand and capital absorption capacity of the economy.

The production and business situation of enterprises and people is facing many difficulties; many enterprises are downsizing or ceasing operations. In particular, some customer groups have demand but do not meet the conditions for loans; the financial capacity of enterprises has decreased, especially small and medium enterprises, with limited capacity, while the mechanisms and institutions supporting enterprises to access loans have not been effective; bad debt is within safe limits but continues to increase.

According to the State Bank of Region 14, in recent times, production and business activities of local products have not fully exploited their advantages such as: agricultural production is slow to modernize, lacks sustainability, and agricultural linkage chains have been formed but have not been optimally exploited. Meanwhile, production models have mainly grown in breadth; connection contents to bring products into the global value chain, support businesses to form industry clusters, linkages in the agricultural and fishery sectors... the progress of implementing key projects has not met the requirements...

Governor of the State Bank of Vietnam Nguyen Thi Hong said that in order to promote credit growth in the region, in the coming time, the State Bank will continue to synchronously implement solutions on monetary and credit policy management.

In particular, implementing solutions to stabilize mobilization interest rates and reduce costs, enhancing the application of information technology to lower lending interest rates; promoting credit growth from the beginning of the year, directing credit to production and business sectors and priority sectors.

"In particular, it is necessary to pay attention to promptly meeting the capital needs of people, enterprises producing, processing, purchasing, storing, and consuming some key export products, ensuring food security of the region and the country such as rice" - Governor of the State Bank of Vietnam Nguyen Thi Hong emphasized. At the same time, the State Bank of Vietnam Region 14 needs to promote the implementation of credit programs and policies under the direction of the Government and the Prime Minister, especially the specific programs of the Mekong Delta region such as: Loan program for linking production, processing and consumption of high-quality and low-emission rice products in the Mekong Delta. In addition, grasp the difficulties of enterprises and people, strengthen business connections to proactively coordinate with local departments and branches to resolve according to their authority, if beyond their authority, report to the functional units of the central State Bank.

Article and photos: KHANH DUY