In 2020, the world and domestic economies were heavily affected by the COVID-19 epidemic and natural disasters. In support of businesses and people, Vietcombank launched many supporting policies on service charges, interest rates and products. Vietcombank Binh Duong Branch was recognized for carrying out many policies to effectively assist businesses and people of all walks of life in the province.
With efforts, solidarity and creativity to overcome difficulties, Vietcombank Binh Duong achieved remarkable business performance in 2020. Most of the targets were met, with the outcomes relatively high as compared to other Vietcombank branches in the Southeast region. At the same time, the branch well controlled credit quality, kept the debt ratio very low and ensured asset safety, operational safety, and cash collection, payment and transportation safety, as well as ATM safety.
Businesses get supported
Deeply grasping policies of the Government, the State Bank of Vietnam and Binh Duong province to actively and drastically prevent the epidemic spread and maintain and develop monetary and credit operations, especially assist businesses and people to overcome the epidemic, Vietcombank launched many important mechanisms and policies as well as prompt, timely and consistent solutions to help customers affected by the epidemic.
Mr. Nguyen Thai Minh Quang, Director of Vietcombank Binh Duong Branch, said that as soon as the epidemic started affecting customers' business performance, the branch knew that fulfilling the business target was a big challenge in the year. Therefore, the branch was determined to join forces with enterprises to overcome the pandemic and achieve the tasks in 2020.
“We actively worked with customers to carry out support and cooperation solutions in a timely manner as directed by the SBV and Vietcombank and applied flexible solutions for local situations. At the same time, we always closely monitored epidemic impacts on our customers’ operations to work out appropriate, flexible support and settlement plans in compliance with the SBV and Vietcombank regulations. Vietcombank Binh Duong fully and promptly informed borrowers of support solutions, policies, programs and packages,” said Director Quang.
In addition to support solutions with respect to interest rates, fees and debt structure, Vietcombank Binh Duong also applied many suitable support forms for customers, such as extending loan terms to match slowing working capital turnovers as a result of the COVID-19 epidemic; sped up factoring services to support and ensure customers' risks management in transactions, bolstered its role of connecting businesses to share, support and coordinate in dealing with temporary difficulties in input supply and orders; and deployed consistent financial solution packages, products and policies to solve procedural difficulties and reduce the time of granting credit for businesses.
To date, a total of more than 2,400 customers are enjoying concessional loans of VND9,900 billion with interest rates 1-3% lower than ordinary commercial loans, accounting for nearly 80% of the total outstanding loans. Accordingly, the interest support for corporate and individual customers in 2020 valued VND190 billion. Outstanding loans restructured to match with COVID-19 epidemic influences in 2020 was nearly VND700 billion. With consistent solutions, in 2020, although the branch's credit and deposit growth was low, the branch managed to support businesses in the tough time and keep the bad debt ratio at 0.07% of total outstanding loans. That was an important motivation for the branch to further support customers, disburse loans for right purposes, balance credit growth, and assign priority to small and medium enterprises. And, with the above results, Vietcombank Binh Duong Branch was recognized as one of the most active and pioneering bank branches in executing many support policies and assisting businesses and people in Binh Dinh province.
Keeping going with customers
In 2021, Vietcombank Binh Duong pledges to accompany and join forces with enterprises to overcome difficulties; actively implement solutions and policies to support them in tackling hardships caused by the COVID-19 epidemic; and check customers' situations to promptly propose interest rate support policies and debt structure in line with regulations of Vietcombank and the SBV, said Director Quang.
Vietcombank Binh Duong Branch will also work out business plans and programs for 2021 as guided by Vietcombank, and will strive to successfully fulfill all targets and plans while ensuring quality and efficiency.
The branch will focus on customer development and care, improve service quality, meet customers’ requirements, effectively tap the potential of existing customers and expand the customer base. It will concentrate on mobilizing capital, particularly cheap ones; enhance safe and effective credit growth, expand retail credit, expand SME lending, closely follow Vietcombank’s policies and guides; and resolutely take back loans from customers and projects exposed to potential risks, or with no or low collateral.
Vietcombank Binh Duong will make breakthrough programs and plans to develop the customer base to increase revenues and effects of forex trading, international payment, and commercial payment; improve the quality of products and services, maximize resources and solutions to promote the growth of retail banking products and services to increase income from services; focus resources for bad debt collection, bad debt recovery, and raise staff awareness and responsibility for credit quality management, bad debt collection and risky loans.
By Huong Vy, Vietnam Business Forum