In the first six months of 2024, banks in Ca Mau province provided over VND1,700 billion to the local economy. This reflects the commitment of the State Bank of Vietnam in Ca Mau province (SBV Ca Mau) to implementing effective monetary and credit policies, including support programs, interest rate reductions, and enhanced capital accessibility for businesses and individuals.
VietinBank Ca Mau and Ca Mau Housing Investment-Development JSC sign a comprehensive cooperation agreement to support social housing projects
To support businesses, SBV Ca Mau directed and coordinated with credit institutions to implement effective monetary solutions and banking operations. This effort ensures adequate credit for businesses, projects, and customers, drives credit growth, maintains credit quality, and manages risks and bad debts. As of June 30, 2024, outstanding loans totaled over VND71,100 billion, marking a 2.52% increase from the start of the year, while outstanding deposits reached nearly VND42,300 billion, up 0.8% (about VND 330 billion). The nonperforming loan (NPL) ratio, excluding NPLs at Vietnam Development Bank, was well-controlled at 2.16% of total outstanding loans.
Mr. Lieu Tri Tai, Deputy Director of SBV Ca Mau, said: The overall credit growth of the province remained low in the first months of 2024 due to many reasons, mainly the decreased credit demand from companies in the context of economic difficulties. Optimistically, credit was channeled into key sectors and industries, higher than the overall credit growth. Specifically, outstanding credit for agricultural and rural development amounted to VND40,769 billion, up 3.67% from the start of the year and accounting for 58% of the total outstanding loans in the province. Of the sum, outstanding credit in the fisheries sector approximated VND32,500 billion, up 6.4% from the beginning of the year.
The banking industry of Ca Mau province, with a strong sense of responsibility and high determination, seriously carried out policies and solutions to increase access to credit, remove difficulties for businesses and people and support economic and social recovery and development and basically achieved positive results, thus contributing to promoting safe and effective credit growth. Specifically, in response to the Interest Support Program under Decree 31/2022/ND-CP of the Government, the interest-supported loan turnover across the province by the end of the policy (December 31, 2023) cumulatively totaled about VND2,672 billion for eight customers and the gross amount of interest supported for customers was more than VND13.68 billion. In restructuring debt repayment terms and maintaining debt categories for customers in difficulty according to Circular 02/2023/TT-NHNN, commercial banks have restructured loan repayment terms and maintained debt categories for 657 customers who borrowed about VND1,458 billion (the aquaculture sector had 285 customers with rescheduled loan repayment terms for VND791 billion). Along with the VND120,000 billion credit package for social housing, worker housing, old apartment renovation and reconstruction according to Resolution 33/NQ-CP of the Government, the credit program for the forestry and fishery sector also lent 31 customers with the cumulative disbursement turnover of VND4,387 billion (accounting for 14.6% of the country’s total credit package of VND30,000 billion).
In addition to credit policies and solutions, credit institutions have also actively adopted many credit programs and packages to meet local customers’ needs, including short-term preferential consumer loan program for individual customers, short-term preferential business loan program for individual customers, preferential investment loan program for corporate customers in 2024, and importer and exporter program in 2024. Following the direction of the State Bank of Vietnam, SBV Ca Mau has actively coordinated with relevant local agencies to advise and propose the Provincial People's Committee to direct the implementation of the Bank-Business Connection Program to promptly address difficulties and obstacles and create favorable conditions for businesses to access bank loans.
Along with effectively carrying out SBV-directed credit programs, credit institutions have also focused on developing non cash payment; deploying safe and secure solutions for online payment and card payment and solutions for user authentication using chip-embedded citizen identification cards; advancing digital transformation and administrative reform. Thus, credit institutions and businesses have worked smoothly and significantly reduced considerable time and cost.
Regarding key tasks and solutions for the last six months of 2024, Mr. Lieu Tri Tai said that the entire banking sector of Ca Mau province has continued to effectively apply directions and solutions of the SBV, the SBV Governor and the Provincial People's Committee to boost credit growth, direct credit to production, business, growth drivers and key industries of the province. In particular, SBV Ca Mau has concentrated on guiding credit institutions to drastically implement cost reduction solutions; created room for slashing lending interest rates to support businesses and people to develop production and business operations and expand access to bank credit. SBV Ca Mau has continued to direct credit institutions and branches in the province to effectively carry out credit policies, programs and solutions; restructure debt repayment terms and maintain debt categories according to Circular 02/2023/TT-NHNN to remove difficulties faced by businesses and people. It has fostered bank - business connection conferences in many forms. Beside the SBV, credit institutions also need to actively connect with businesses; promptly grasp, handle and remove difficulties of customers in an effective and substantial manner.
Last but not least, SBV Ca Mau has continued to review and monitor the operations and networks of credit institutions to make sure that they meet local socioeconomic development requirements and actively help execute the National Comprehensive Financial Strategy to 2025, with a vision to 2030.
By Tri Dung, Vietnam Business Forum
Vietnamese
