On the morning of September 19, the provincial branch of the State Bank of Vietnam coordinated with the Vinh Phuc, Binh Xuyen, and Phuc Yen branches of the Vietnam Joint Stock Commercial Bank for Industry and Trade to organize a conference connecting banks and businesses. The goal was to facilitate direct dialogue between banks and their clients, identifying challenges and obstacles and proposing solutions to help businesses access credit with ease and promote credit growth during the last months of 2024. Attending the conference were Mr. Tran Duy Dong, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People's Committee, as well as leaders from various related departments and sectors.
Chairman of the Provincial People's Committee, Tran Duy Dong, speaking at the conference
Driven by practical needs and the demand to resolve business challenges, the provincial branch of the State Bank of Vietnam has regularly instructed credit institutions to effectively implement the Bank-Business Connection Program and the Market Stabilization Program to address capital difficulties in business operations, contributing to the province's economic growth. Over the first eight months of 2024, the provincial branch of the State Bank of Vietnam organized four Bank-Business Connection Conferences in the province. In September, the provincial branch continued collaborating with the system of the Vietnam Joint Stock Commercial Bank for Industry and Trade and the Vietnam Bank for Agriculture and Rural Development to hold two more connection conferences to promote credit growth in the remaining months of the year. Through these connection programs, from the beginning of the year, credit institutions in the province have disbursed new loans and restructured loans for 1,450 businesses, with total outstanding loans reaching VND 19.8 trillion. As of the end of August 2024, the total capital mobilized across the province reached VND 126.238 trillion, up 11.25% compared to the same period in 2023, while the total outstanding loans amounted to VND 134.602 trillion, an increase of 13.45% over the same period last year. For the Vietnam Joint Stock Commercial Bank for Industry and Trade system, the total outstanding loans of its three branches in the province reached VND 25.34 trillion by the end of August 2024, reflecting a growth of VND 1.419 trillion compared to the end of 2023, with a growth rate of 5.93%, higher than the province's average increase of 5.03%.
At the conference, representatives of commercial banks and businesses analyzed and clarified the results achieved, shared difficulties encountered in accessing credit, and proposed several solutions to enhance access to loans, helping businesses gradually overcome challenges and stabilize their production and operations.
Recognizing the importance and necessity of the Bank-Business Connection Conference, Chairman of the Provincial People's Committee, Tran Duy Dong, urged the provincial branch of the State Bank of Vietnam, along with related departments and sectors, to fully consider the suggestions and recommendations from the conference attendees. He also encouraged them to proactively review and gather information to promptly resolve any difficulties or obstacles faced by businesses, facilitating access to credit within the legal framework. Additionally, he emphasized the need to proactively implement and strengthen Bank-Business connections through appropriate methods, accelerate digital transformation in banking operations, and meet the demands of new business models and service products based on information technology, digital banking, and digital payments. He stressed the importance of ensuring security and safety in payment operations and digital transformation. The provincial branch of the State Bank of Vietnam was also directed to continue overseeing and guiding credit institutions to effectively implement credit support programs for individuals and businesses. Efforts should be focused on maximizing capital for production, business activities, priority sectors, and national target programs, ensuring that people and businesses can access bank loans to meet legitimate needs and preventing capital shortages for businesses with sound business plans. Commercial banks within the province were also urged to proactively assess credit quality and the handling of bad debts, ensuring that data is objective and accurate. They should continue to strengthen efforts in addressing bad debts and controlling credit quality. Alongside these governmental and institutional efforts, the business community is encouraged to enhance management capacity, restructure operations, and develop feasible, effective business plans, providing credit institutions with a solid basis for loan assessment and decisions, ensuring that loans are aligned with the operational status and needs of businesses.
Phung Hai