10:56:15 PM | 12/4/2012
Set up in 1998, the Dong Thap Branch of Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank Dong Thap) is committed to the cause of doi moi (renovation) and economic development of the country in general and Dong Thap province in particular. The branch was honourably bestowed the Third Grade Labour Order by the State President in 2001 and the Third Grade Labour Order in 2007. Mr Vo Ngoc Diep, Director of Vietinbank Dong Thap, has a face to face talk with Vietnam Business Forum about the branch development. Duy Hanh reports.
As a large, reputable credit institution in Dong Thap province, how has Vietinbank Dong Thap pursued its effort to energise and motivate economic development in general, and agricultural and rural development in particular?
This is a major concern and a constant responsibility of VietinBank Dong Thap during 22 years of development. We have focused on investment restructuring and paid attention to agricultural and rural development since 1995. After 17 years, loans increased approximately 18 times to nearly VND20,000 billion.
In 2011, the economic slowdown impacted businesses in general and banks in particular. However, in that year, the branch’s deposits grew 39 percent and loans expanded 20.5 percent.
One of the key tasks VietinBank Dong Thap has pursued in the past years is to fund agriculture and rural development as provided in Government Decree 41/2010/ND-CP and the State Bank of Vietnam (SBV)’s Circular 14/2010/TT-NHNN. In 2011, the branch lent VND3,040 billion in soft loans for the agricultural sector and countryside. Preferential interest rates were 0.5 - 2 percent lower than normal rates, helping ease the burdens of farmers and businesses.
The branch also boosted export credit for big exporters in the province. It lent over VND800 billion to exporters last year. With a rebate of 1 - 2 percent on annualised basis, Vietinbank Dong Thap helps businesses reduce production costs and increase their competitiveness on the world market. Then, they are able to reduce farming material and tool prices for farmers. Agricultural and export credit programmes will be applied through 2012.
To help borrowers access capital sources and stimulate economic development, what policies will Vietinbank Dong Thap adopt in the coming time?
In the course of its business operations, Vietinbank Dong Thap always follows the instructions of the Government, the State Bank, Dong Thap province and Vietinbank. As a State-owned commercial bank, Vietinbank Dong Thap applies monetary policies while funding industrial, agricultural and aquatic production, and trade. The branch will continue improving service quality, enlarge transaction offices, and expand operating networks. It will further introduce its products and services to customers.
The branch carries out credit policies for farmers in accordance with the Prime Minister’s Decree 41/2010/ND-CP dated April 12, 2010. According to Vietinbank’s policy, the branch allows unsecured loans worth up to VND30 million per borrower. Vietinbank Dong Thap is committed to meeting capital needs for agricultural production and rural development for all economic sectors.
The competition among banks in Dong Thap is intensifying. What has Vietinbank Dong Thap done to enhance service quality and competitiveness?
When banks compete with each other, service quality directly affects the bank’s prestige and market share. Thus, in 2012, Vietinbank Dong Thap will focus on improving brand reputation, polishing the image of Vietinbank, strengthening governance, perfecting its organisation, developing its operating networks, building up a professional workforce, and improving its facilities to increase value and utility for customers.