Vietcombank Quang Ngai Leading Credit Funding for Businesses

Carrying out business tasks in 2023 amid a challenging economy and financial and banking market, Vietcombank Quang Ngai still achieved positive credit operations. This success came from the branch’s close adherence to local socioeconomic performance and especially the province’s development guidelines and orientations, to work out appropriate solutions and strategies to promote the effect of capital sources and ensure growth pace. Our reporter has an interview with Mr. Vo Van Linh, Director of Vietcombank Quang Ngai.

The director of VCB Quang Ngai and VCB’s delegation pay a working visit to Saigon Quang Ngai Beer Company

Could you please introduce the remarkable credit activities of Vietcombank Quang Ngai this year?

Vietcombank Quang Ngai's credit balance reached VND7,150 billion of February 28, 2023, an increase of VND435 billion over December 31, 2022. Of the sum, the corporate loan was VND3,059 billion, an increase of VND431 billion from the end of 2022. The credit growth was 6.4% in the first two months of the year, and the credit quality was good. Credit continued to be channeled into manufacturing fields and prioritized fields as defined by the Government and the State Bank of Vietnam.

Especially from January 1 - April 30, 2023, to support customers to overcome difficulties, Vietcombank has slashed the lending interest rate by 0.5% for both corporate and personal customers. The rate cut was applied to a total of VND4,263 billion of outstanding loans for 2,680 customers. The rate cut value was VND7.1 billion.

Quang Ngai province has a vibrant economy and competitive pressures in the financial and banking sector are also huge. In this context, how has the branch improved its competitiveness, product quality and service quality?

Operating in a very active economy with significant competitive pressure, Vietcombank Quang Ngai always focuses on improving the quality of products and services and customer experiences. The branch always places customers at the center and looks at customers’ journey to meet necessary needs in time.

Vietcombank has launched its products for each customer segment. In addition to studying suitable products for each customer segment, technology is always focused on development, diversification and implementation. Moreover, the banking is a service, and customers’ emotions and experiences are essentially brought by people. So, building up the workforce and upgrading professional qualifications for its employees is of special concern for Vietcombank Quang Ngai to realize the goal of becoming a common roof for young, enthusiastic, creative, dynamic and well-trained employees.

The COVID-19 epidemic, complicated global development and high inflation have considerably impacted the economy in general and the financial - banking industry in particular. In this context, how has Vietcombank Quang Ngai improved its credit quality and controlled bad debts?

Although the economy faced numerous difficulties during years of COVID-19 epidemic, Vietcombank Quang Ngai managed to control credit quality and keep the bad debt ratio as low as 0.8%. This outcome resulted from the branch’s effort to align credit growth with credit quality control. The branch intensified probes in loan uses by customers to identify risks early due to adverse market factors. The branch reviewed lending portfolios and diversified the loan portfolio. It took timely, appropriate measures for customers in need of credit, including restructuring debt, controlling cash flows/reviewing income sources to repay debt, increasing collateral, narrowing outstanding loans, and exempting interests.

Moreover, the treasury is always compliant with regulatory policies and professional processes to ensure timely and accurate revenue and expenditure and absolute fund safety to meet cash transaction requirements for customers.

Mr. Nguyen Thich, Deputy Director of VCB Quang Ngai, presents Tet gifts to the poor in Duc Pho district

In this challenging context, has Vietcombank Quang Ngai adopted policies and programs to support customers and businesses to overcome difficulties and stabilize business development?

Vietcombank lowered the lending interest rate by 1% on November 2, 2022. The branch reduced interest by VND4 billion on VND6,000 billion of loans. Entering 2023, the bank slashed the lending rate by another 0.5% for all corporate and personal loans from January 1, 2023 to April 30, 2023.

Furthermore, in June 2022, Vietcombank Quang Ngai led interest rate cuts for corporate customers under Decree 31 of the Government. The value of support loans was VND1,286 billion and the slashed interest value was VND5.95 billion. In the first two months of 2023, the amount of credit interest support was VND410 billion and the amount of supported interest was VND2.8 billion.

How will Vietcombank Quang Ngai further boost its leading role in financing businesses for development?

The branch advocates increasing credit for manufacturing industries and prioritized fields like agriculture, rural areas, exporters, start-up companies, small and medium-sized companies, fintech firms and supporting industries. Vietcombank Quang Ngai will maintain preferential interest rate programs to support businesses to overcome difficulties and stabilize business operations.

Additionally, the branch will continue to carry out the interest-supported loan program under Decree 31 of the Government; offer solutions to remove difficulties and assist customers to restore and develop business and manufacturing operations; and continue to restructure and handle bad debts to complete its planning targets in 2023.

Thank you very much!

By Cong Luan, Vietnam Business Forum