Banking industry accompanies private economic development

Implementing Resolution 68-NQ/TW dated May 4, 2025 of the Politburo on private economic development (Resolution 68), the State Bank of Vietnam, Region 4 branch, has directed credit institutions in Lao Cai province to synchronously deploy many solutions to support private economic development.

Agribank Yen Bai Branch staff guides business households through loan procedures.

Along with directing commercial banks and people's credit funds in the area to research and give opinions on amending management documents; advising and proposing tasks to develop the Action Plan of Lao Cai Provincial People's Committee to implement Resolution 68; State Bank Branch Region 4 has directed banks and people's credit funds to increase capital mobilization for investment in the economy .

The goal is to direct credit to production and business sectors, priority sectors, development drivers and key projects of the province; at the same time, reduce costs, strive to reduce lending interest rates, create favorable conditions for people and businesses to access capital in accordance with the law...

The credit institution system in Lao Cai province includes 31 commercial bank branches, 1 development bank, 1 social policy bank, 1 cooperative bank branch, 18 people's credit funds and 20 level II branches of the Agribank system...

Mr. Nguyen Quang Dat - Deputy Director of the State Bank, Region 4 Branch said: The Branch's Board of Directors has increased their visits to the grassroots level, grasping difficulties and problems after the province's merger to have appropriate handling instructions and recommendations, ensuring that bank branches and people's credit funds operate stably and safely.

Accordingly, the banking system and people's credit funds in Lao Cai province continue to invest well in facilities and technology, ensuring the full supply of banking products and services to people and businesses; continue to improve and innovate lending processes, reduce declaration criteria in loan applications in a simplified manner while still ensuring information on credit appraisal and approval; promote the application of information technology in loan processing, helping to shorten processing time and reduce costs for customers...



Information technology training, serving administrative reform and digital transformation at Vietinbank Lao Cai Branch.

Commercial banks and people's credit funds in the area have strictly complied with the regulations of the State Bank of Vietnam and the Head Office with the average mobilization interest rate in the area fluctuating from 2.7%/year to 5.66%/year; the common lending interest rate is from 5.0%/year to 14.06%/year.

As of August 31, 2025, the total mobilized capital of the whole province reached 95,500 billion VND, an increase of 10.4% compared to the end of 2024; outstanding loans are estimated at 120,200 billion VND, an increase of 6.1% compared to the end of 2024; the bad debt ratio of the whole system is about 717 billion VND, less than 1% of outstanding loans. Capital for private economic development in Lao Cai reached 114,487 billion VND, accounting for 96.3% of total outstanding loans; focusing on lending for agricultural and rural development, small and medium enterprises, disbursing committed projects...

The total capital of the Bank for Agriculture and Rural Development, Yen Bai branch, currently reaches nearly VND8,000 billion, outstanding loans of over VND12,000 billion, an increase of VND976 billion compared to the beginning of the year, with over 19,600 customers borrowing capital. The preferential loan program focuses on rural agriculture; supporting small and medium enterprises... Credit quality is controlled, bad debt ratio is 0.26%.

As a bank with a large number of customers in the area, the total capital of the Yen Bai Branch of the Bank for Agriculture and Rural Development currently reaches nearly 8,000 billion VND, outstanding loans of over 12,000 billion VND, an increase of 976 billion VND compared to the beginning of the year, with over 19,600 customers borrowing capital.

Mr. Ta Quang Kha - Deputy Director of the Bank for Agriculture and Rural Development, Yen Bai branch, said: The branch has implemented many preferential loan policies to help people have the opportunity to access capital sources such as: "Green departure - Accompanying you", preferential credit for business customers investing in infrastructure, digital technology, supporting small and medium enterprises... Timely credit capital has become a lever to help organizations and individuals develop the economy, contributing to sustainable poverty reduction, promoting local economic and social development.

Along with preferential loans, in implementing Resolution 68, digital transformation is one of the solutions to create conditions to help people and businesses access capital for production and business.

Ms. Bui Thi Tuyet Chinh - Chairwoman of the Board of Directors of Nguyen Phuc People's Credit Fund, Yen Bai ward said: Fund has deployed electronic money transfer services to support people in accessing capital and modern financial services. Therefore, since the beginning of the year, it has disbursed over 121 billion VND to customers for investment in production and business.

Like many businesses in the province, Dai Duong Company Limited (Group 8, Yen Bai Ward) regularly uses bank loans for business. With the current interest rate of about 0.45%/month, the loan helps the business ensure stable operations and profitable business.

Mr. Luong Xuan Dung - Director of Dai Duong Company Limited said: Loan procedures are processed within the day, creating very good conditions for businesses.



From bank loans, Dai Duong Company Limited has maintained effective business.

It can be affirmed that the implementation of Resolution 68 is not only a political task but also an opportunity for the banking sector to affirm its role as a companion to the people and businesses. In Lao Cai, the strong participation of the banking system has created positive changes, helping private enterprises gain more confidence and motivation for development. However, along with the measures that have been implemented, continued support to reduce lending interest rates continues to be the desire of businesses and people.

Ms. Vu Thi Khuyen in Khe Mo village, Chan Thinh commune shared: I have just completed the loan procedures to invest in high technology application to expand the fruit garden, the process of completing the loan procedures was very favorable. However, we really hope to have more loan sources with more preferential interest rates to invest in production and business effectively.

According to Mr. Nguyen Quang Dat - Deputy Director of the State Bank of Vietnam, Region 4 Branch, the Branch continues to advise and direct to perfect the policy mechanism; at the same time, direct credit institutions to continue to reduce costs, simplify administrative procedures, enhance digital transformation... to reduce lending interest rates, support the best development of the private economic sector.

Source: https://baolaocai.vn/nganh-ngan-hang-dong-hanh-phat-trien-kinh-te-tu-nhan-post882260.html