In recent times, the banking sector in Tien Giang has implemented a multitude of initiatives to stand in solidarity with the business community in their struggle to overcome hardships. The sector has been proactive in providing credit loans to businesses and individuals, thereby facilitating the recovery and growth of production and business operations said Mr. Nguyen Van Nhut, Deputy Director of the SBV Tien Giang Branch, in an exclusive interview with our reporter.
Mr. Nguyen Van Vinh (middle), Chairman of Tien Giang Provincial People's Committee, cut the ribbon to inaugurate Agribank Digital Tien Giang
How do you think about achievements made by the Tien Giang banking sector in 2023?
In 2023, the Tien Giang banking industry drastically followed resolutions, directives and plans of the State Bank of Vietnam (SBV) and the Tien Giang Provincial People's Committee to achieve stably good operating results. Total deposits reached VND94,067 billion, up 7.22% year on year and equal to 99.27% of the full-year plan. The capital scale ranked 3rd out of 12 Mekong Delta provinces. Outstanding loans totaled VND92,267 billion, up 7.26% year on year and equal to 94.09% of the plan, to lend more than 1.1 million customers. The bad debt ratio of 1.85% was within the limit. Lending interest rates fell by 1-2% from the end of 2022.
Preferential credit policies and programs were well applied in the province. For example, outstanding loans in five prioritized areas expanded 12.31%, higher than the overall sector’s growth, accounting for 71.69% of total outstanding loans, with nearly 2,000 borrowers. The effective execution of credit programs according to Resolution 43/2022/QH15 of the National Assembly and Resolution 11/NQ-CP of the Government brought positive results.
SBV Tien Giang also promoted bank-business connection programs; hosted four dialogues; established an interagency working group to support borrowers to overcome difficulties to enhance capital absorption; sped up digital transformation and noncash payment like installing more ATMs, POS machines, ATM cards, eKYC accounts and transactions via payment methods.
In 2024, SBV Tien Giang will focus all resources to assist businesses and people to surmount difficulties, manage monetary, credit and forex policies and activities in the province safely, stably, and smoothly to support socioeconomic recovery and development.
Tien Giang Provincial General Hospital and BIDV Bank My Tho branch signed a memorandum of understanding to cooperate in implementing non-cash payments
How has the Tien Giang banking sector responded to the “great transformation” journey of the banking sector to step up administrative reform, improve competitiveness and especially speed up digitalization?
SBV Tien Giang directed credit institutions to pace up digital transformation in banking and noncash payment activities. To date, all 30 commercial bank branches in the province are providing collection services for tax, electricity, water, education and health companies and social security programs.
The sector also stepped up Project 06 of the Prime Minister and coordinated with the Ministry of Public Security, followed directions of the SBV and the Provincial People's Committee. On September 8, 2023, SBV Tien Giang held a working cooperation meeting to carry out the “Model 19 - Deploying unsecured loans to poor households and people with meritorious services” to launch the “typical model” to promote Project 06 in the province.
Non-cash payment continued to achieve positive results. Payment for public services through banks kept being scaled up, especially in health, education, and social security areas. Every year, SBV Tien Giang issues a document requesting credit institutions to encourage its employees to respond to and take part in the Contest “Studying Tien Giang Digital Transformation”. In addition, SBV Tien Giang coordinated with the Department of Labor, Invalids and Social Affairs to meet with relevant bodies to implement Directive 21/CT-TTg dated November 25, 2022 of the Prime Minister on accelerating digital transformation for cashless payment for social security beneficiaries.
Payment network infrastructure continued to be invested and developed. By the end of October 31, 2023, all 30 commercial bank branches provided card services, 271 ATMs, 1,620 POS machines and 1,125,032 ATM cards in circulation, seeing an increase of nine ATMs, 558 POS machines, and 67,770 ATM cards. ATM and POS systems are arranged and installed in favorable places like hospitals, industrial parks, stores, supermarkets, district centers, towns and cities. To date, 249,471 bank accounts have been opened with eKYC electronic identification protocol by commercial banks. As many as 1,861,670 people aged 15 and older have their own bank accounts.
The pilot implementation of Mobile-Money service aims to increase access to and use of financial services. Up to now, the province has nearly 90,000 Mobile-Money accounts opened by telecommunications businesses in the province.
Thank you so much!
Source: Vietnam Business Forum
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