Playing a key role in the local banking system, Vietinbank Vinh Phuc has always taken the lead in delivering soft credit to businesses and customers who are managing to live through difficulties and reinforce business recovery and development.
In 2022, Vietinbank Vinh Phuc launched many preferential credit programs for businesses and helped economic recovery and development as directed by the Government and the State Bank of Vietnam (SBV). The branch offered over VND300 billion of concessional loans to corporate customers as of December 2022, achieving credit growth of 8% in the year. Based on selective credit growth and ensuring capital adequacy, Vietinbank Vinh Phuc spurred retail banking development, focusing on credit growth for small and medium-sized enterprises (SMEs) and government-prioritized sectors.
Consistently supporting businesses in optimizing cost and business funding, Vietinbank Vinh Phuc is carrying out two giant preferential loan packages, including a financing package for construction enterprises and a chain-based guarantee package. For the financing package for construction enterprises, the branch is offering a full financial solution with a competitive collateral ratio, a reasonable interest rate, flexible management and credit funding as well as a package solution for the project life cycle, from customer selection in public tending to project construction and completion. For the chain-based guarantee package, businesses will receive more incentives, with fee reductions by up to 40% in 12 months from the date of joining the program, for more types of guarantees issued. The program is widely applied to all borrowers, not only companies that are existing customers of Vietinbank but also new customers. The advantage of the chain-based guarantee package lies in the fact that businesses that introduce partners to use bank guarantee products will be granted incentives from the program as well.
After the State Bank of Vietnam recently revised up credit “room”, Vietinbank Vinh Phuc continued to boost credit growth for retail banking and SMEs; access many effective investment projects, especially for green energy projects and investment projects in industrial zones; and ensure timely response to customers' credit needs for business. Moreover, following Decree 31 of the Government on interest support for businesses, cooperatives and business households, Vietinbank Vinh Phuc reviewed and compiled a list of customers eligible for support, focused on transport, tourism, accommodation services, agriculture, processing and manufacturing industries. In late 2022, the branch mobilized VND10,200 billion of deposits, up 5% year on year; and lent a total of VND10,093 billion, up 8%. The bad debt ratio was kept below 0.5%. The branch offered more than VND300 billion in interest-supported loans.
In 2023, the economy is forecast to continue facing difficulties. Companies will have greater borrowing demand for their business recovery and development. Vietinbank Vinh Phuc will continue to adopt an effective, practical and flexible business strategy to carry out preferential credit programs backed by the Government and the central bank. The branch will strengthen communication and grasp feedback from customers to gradually diversify products and services, improve service quality, and remove difficulties for customers in accessing preferential loans.
By Manh Dung, Vietnam Business Forum