In 2019, the banking industry of Soc Trang province reached its safety, quality and performance goals with many positive results and importantly contributed to local socioeconomic growth.
To maintain good credit growth, in the past year, the State Bank of Vietnam - Soc Trang Branch (SBV Soc Trang) applied various innovations to administrative works. Specifically, SBV Soc Trang promptly adopted banking mechanisms and policies together with Government and SBV Governor policies. At the same time, the branch directed credit institutions to actively carry out credit expansion programs designed for certain sectors, fields and beneficiaries as directed by the Government of Vietnam and the SBV while ensuring credit safety and quality, as well as enough capital for the economy.
From its above efforts, in 2019, the Soc Trang banking industry achieved remarkable results and played an important part in realizing the province's economic development tasks and the sector’s master orientations. As of December 31, 2019, business performances of most credit institutions were profitable. Credit institutions mobilized VND31,559.2 billion of deposits, an increase of VND4,879.6 billion or 18.3% over the end of 2018, 18.3%. In the past year, they provided loans of VND74,707.7 billion in the province, an increase of VND9,363.3 billion or 14.3% against the end of 2018. Of the sum, short-term loans accounted for VND64,282 billion and medium and long-term loans accounted for VND10,425.7 billion.
Total outstanding loans reached VND41,123.6 billion in the province at the end of 2019, an increase of VND7,584.9 billion or 22.6% over the end of 2018. Of the amount, short-term loans valued VND25,381.4 billion, accounting for 61.72% and medium and long-term loans were VND15,742.2 billion, accounting for 38.28%. The nonperforming loan (NPL) ratio was reduced to 2% of total outstanding loans. The provincial banking industry met capital needs for production, business, export and rural agriculture, promoted economic restructuring, and helped realize the GRDP growth of 7.3% of Soc Trang province in 2019.
According to SBV Soc Trang Director Pham Kim Hung, despite hardships in national and provincial economic development, the banking system of Soc Trang province remarkably completed various important indicators such as capital mobilization, bad debt control and contributions to local socioeconomic growth. Promoting its achieved results, in 2020, the sector will strive for credit growth of about 14%, improve credit quality, and control the NPL ratio below 2% of the total outstanding loans.
In order to achieve its goals, the banking sector will focus on strongly and drastically executing monetary and banking solutions, strive to realize the credit growth in 2020, support the province's economic transition and growth, while concentrating on credit quality, efficiency and capital adequacy. It will also firmly carry out Resolution 01/NQ-CP and Resolution 02/NQ-CP of the Government and Directive 01/CT-NHNN of the SBV, effectively implementing credit policies for agricultural development and loan programs to encourage high-tech agriculture and organic agriculture development as per Resolution 30/NQ-CP. It will continue to fulfil the Resolution of the National Assembly on pilot settlement of bad debts to 2020 and endeavor to bring the nonperforming loan ratio to below 2%, while directing local credit institutions with bad debts of above 3% to take drastic action to bring the rate down to the permitted level.
The banking sector will also actively coordinate with business associations, relevant departments and agencies to promote business-banking connectivity, and create favorable conditions for credit loans for businesses and citizens. It will promote the development and application of modern technologies and banking services together with ensuring quality, security, safety and confidentiality of international standards. At the same time, the sector will accelerate administrative procedure reforms in the banking sector to reduce compliance costs and administrative procedures while facilitating organizations and individuals to conduct administrative transactions with the SBV and with credit institutions, improve the business environment in the monetary and banking sector, raise the national competitiveness and foster the sustainable development of enterprises in general and credit institutions in particular.
By Cong Luan, Vietnam Business Forum