Prime Minister Pham Minh Chinh chaired a conference with joint-stock commercial banks on solutions to contribute to the country’s socio-economic development – Photo: VGP/Nhat Bac
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This was the opinion of leaders of several banks at a conference held by the Prime Minister with joint-stock commercial banks on solutions to contribute to the country’s socio-economic development in Hanoi on September 21st.
Numerous preferential interest rate programs are offered, but there is a need to diversify capital sources.
At the conference, Luu Trung Thai, Chairman of MB, said that following the Government and SBV’s guidelines and orientations, MB maintained its sustainable growth momentum until the end of August 2024.
The bank’s credit balance reached approximately VND 685 trillion, an increase of 11.15% compared to 2024, and about 7.15% higher than the industry average. Loans to priority sectors as directed by the Government accounted for roughly 65%, with new disbursements of about VND 74 trillion for SMEs.
MB adjusted interest rates according to the Government and SBV’s instructions, supported customers in accessing loans, and accompanied them in overcoming difficulties and resuming production and business activities, thus contributing to economic growth. The bank reduced lending rates by 0.5% to 1.45% compared to 2024 (MB’s business loan interest rate was about 6.94%, while it was 7.88% in 2023).
In the fourth quarter of 2024, MB will continue to implement preferential interest rate credit programs for customers with viable production and business plans. The bank will also focus on closely controlling credit quality and complying with limits and ratios to ensure safety, as well as managing liquidity…
The Chairman of MB also pointed out difficulties, problems, and limitations, especially regarding safe and healthy credit growth. He also presented MB’s recommendations and proposals to the Government and SBV.
MB agreed with the solution of firmly maintaining macroeconomic stability targets, curbing inflation, and stabilizing lending rates… However, there is a need for additional solutions to stabilize and unblock capital flows in the corporate bond market to reduce the pressure on medium and long-term capital in the banking system. Furthermore, timely information dissemination is essential to maintain the market’s and bond investors’ psychology.
“It is necessary to expedite the unification of electricity prices, especially for transitional and new projects, and instruct EVN to prioritize and ensure payment progress for green energy and renewable energy production enterprises. Additionally, the banking sector should be further facilitated and supported in enhancing connectivity and accessing the national database to develop technology and ensure safe and secure payments for customers,” MB’s representative requested.
Prime Minister Pham Minh Chinh met with representatives of some banks on the sidelines of the conference – Photo: VGP/Nhat Bac
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Providing guidance on debt restructuring and supporting customers’ cash flow
Nguyen Duc Vinh, CEO of VPBank, shared that the bank is actively promoting disbursement to meet capital demands, boost production and business activities, and curb loan sharks. This orientation of VPBank is consistent with the requirements and legal framework of the SBV to support enterprises in accessing capital to expand their production and business operations.
Following the Government and SBV’s guidelines, VPBank has planned and implemented solutions to support customers in overcoming difficulties, resuming production and business activities, and overcoming the consequences of Storm No. 3 (YAGI) as directed by the SBV.
VPBank promptly instructed its branches and transaction offices to proactively review and summarize the damage of borrowing customers to provide timely support.
Regarding the social housing loan program, in accordance with the Government’s Resolution 33/NQ-CP dated March 11, 2023, VPBank registered to participate in the social housing, worker housing, and old apartment building renovation and reconstruction loan program. The disbursement volume of this program is expected to reach VND 5,000 billion by the end of 2030.
Nguyen Duc Vinh, CEO of VPBank, made specific recommendations and proposals to relevant ministries, sectors, and agencies. He suggested the need for a program to support enterprises and people affected by floods and storms, including tax breaks to help customers recover their lives and resume business operations.
There should also be legal support for real estate companies to implement projects, create cash flow, and generate surplus value for society, with a portion of the cash flow being used to repay debts to banks. Additionally, the public security, court, and enforcement agencies should assist in debt recovery, seizure, and handling of mortgaged assets, giving priority to credit institutions to ensure credit safety for banks and maintain their cash flow for reinvestment and financing of general activities.
“It is proposed to consider extending Circular No. 06/2024/TT-NHNN dated June 18, 2024, to June 30, 2025, and provide additional guidance on credit institutions’ allocation of receivable and withdrawable interest. A roadmap for point b, Clause 5, Article 4 on the specific provision rate should also be established…
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Private joint-stock commercial banks have been actively implementing supportive solutions for citizens and businesses alike. In parallel, these banks are also eagerly awaiting the removal of institutional obstacles by government agencies to optimize their resources and boost economic growth.
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The leaders of joint-stock commercial banks attribute the country’s economic growth and controlled inflation to the effective coordination between monetary and fiscal policies. This harmonious relationship has been pivotal in achieving macroeconomic stability and keeping inflation within the targeted range.
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As of now, HDBank has successfully adhered to the directives of the Government and the State Bank of Vietnam, achieving remarkable growth with a credit increase of over 15% since the beginning of the year. The bank’s outstanding loan balance has surpassed VND 390 trillion, while its non-performing loan ratio remains low at just 1.74%. Additionally, the bank has actively and proactively participated in the restructuring of the commercial banking system.
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