BIDV Quang Tri: Effective Response to Macro-Economic Stabilisation

BIDV Quang Tri - a branch of the State-owned Vietnam Bank for Investment and Development (BIDV) - is an outperformer of the BIDV system. The branch was among the first to lower lending rates right from September 8, 2011 (16-17 percent rate is applied to medium term credits and the rate of below 16 percent is subjected to short-term loans.)

 

Implementing six solutions launched by the government to curb inflation, stabilise macro economy and ensure social security, BIDV Quang Tri has focused on tightening credit to follow the State Bank’s regulation that credit growth is to keep below 20 percent this year, minimise expenses, and lower lending rates. At present, BIDV Quang Tri is building a sustainable capital mobilisation plan, including the construction of new transaction offices in districts.

 

To develop and better serve customers, BIDV is adopting a modern field-specific management model which focuses on three fields: Risk (risk management, risk and bad debt warning); profession; and credit management (lending and service development). All stages are specialised. The bank also carries out product-oriented human resource training (it has 500 products at present). It also applies one-door transaction mechanism and direct payment with other BIDV branches.

 

For BIDV, safety is the most important. It delivers necessary warnings of bad factors to companies, helping them know their problems and opt out best solutions to their situations. By categorising debs and assessing customers, the branch manages to keep bad debt ratio at just 4-5 percent.

 

With the responsive solutions, BIDV Quang Tri overcame all difficulties to complete its business targets. In the first eight months of 2011, the branch mobilised VND1,070 billion, up 19.3 percent year on year, and equal to 87.3 percent of the full-year plan. Its outstanding loans rose 7 percent year on year to VND1,270 billion, which equalled 90 percent of the yearly plan. Credit operations have been done carefully from the stage of customer approaching. Following the BIDV’s policy, credits for luxury goods like automobiles and non-production fields have been tightened while loans for manufacturing and basic construction fields have been boosted up.