Working as an economic supporter, Vietcombank Vinh Long always fully and promptly carries out credit policies and offers loans for businesses. The branch is also a leading provider of modern products and services, gradually asserting its performance and enhancing its brand position in the mind of customers. The following is an interview with Mr. Phan Vo Phuoc Khanh, Director of Vietcombank Vinh Long, to learn more about its efforts. Duy Anh reports.
Could you please introduce “bright spots” of Vietcombank Vinh Long's business over the past time?
Vietcombank is long well-known as a strong financial - banking brand. Recently, Vietcombank was honored to be voted the Best Retail Bank in Vietnam in 2020 by Asian Banker Magazine. The size of Vietcombank's total assets has doubled since 2015 and profit exceeded US$1 billion in 2019.
A few years ago, Vietcombank Vinh Long’s business operations also faced certain difficulties. Loans for underperforming companies resulted in its inability to end operating loss due to provisions set aside for bad debts. In that context, the branch promptly proposed changes to handle debts and develop lending business to support customers. As a result, its hardship doubled. With the tireless efforts of its employees, led by the cultural spirit of Vietcombank, Vietcombank Vinh Long had remarkable growth in the past three years, with the scale more than doubling. Specifically, outstanding loans have increased 5 times in value from 2015 to date and deposits expanded by 3 times. In 2019, the branch ended its operating loss and helped improve Vietcombank’s business performance.
Currently, small and medium-sized enterprises (SMEs) are finding it hard to access capital. What specific efforts has Vietcombank Vinh Long made to lend necessary funds for enterprises?
Small and medium-sized enterprises (SMEs) are facing difficulty in accessing bank loans because they cannot meet lending conditions (financial health, business plans and security assets among other things). Recognizing these difficulties, Vietcombank has also appropriately lent to well-performing businesses. Vietcombank Vinh Long has constantly approached and lent SMEs in the past time by deploying loan packages for SME customers as guided by Vietcombank, especially loans to SMEs engaged in supporting industries, industrial vendors, companies in production and business chains. The branch has regularly launched incentive programs with attractive interest rates for the SMEs (short-term soft VND loan program, USD loans carrying annual interest rate of 2.6%; fixed-rate incentives in 2/3/5 years for SMEs.
Given specific guidelines and action roadmap, over the past years, Vietcombank Vinh Long's business results have gradually improved; gradually approached more SMEs and increasing loan balance sheets. Outstanding loans at Vietcombank Vinh Long for SMEs have increased by 83% since 2016. In addition, the branch has applied the soft loan package with an interest rate of only 4.5% per annum. Debt quality of SMEs, in our opinion, is very good. Vietcombank Vinh Long has no problematic debts or nonperforming loans when lent to SMEs.
The economy of Vinh Long province is developing diversely, driven by export, industry, trade, construction and tourism. So, how sharp is Vietcombank Vinh Long at providing products and services for these spearhead economic sectors?
As a credit institution that funds the economy, Vietcombank Vinh Long follows directions given by the Provincial Party Committee, the Provincial People's Committee, the State Bank of Vietnam - Vinh Long Branch and Vietcombank's Board of Directors on lending local enterprises.
Practical and useful solutions and actions deployed by Vietcombank in general and Vietcombank Vinh Long in particular for businesses and customers include ensuring safe and effective credit growth for both Vietcombank and its customers; actively looking for customers and having solutions to deal with difficulties in access to bank loans; reviewing and restructuring customers by given criteria, shifting focus on lending from wholesale customers to retail customers; restructuring the portfolio by sector, targeting at goods that bring added value to the economy and attracting foreign currency sources from exporters; promoting payment solutions, especially non-cash payments through technology applications (VCB Digibank and SMS Banking), contactless payment solutions, and package finance solution like exchange rate insurance products.
Vietcombank's products and services are built on modern international development trends. Therefore, Vietcombank Vinh Long is always a leading provider of modern products and services to local users, gradually asserts its brand position, confirms the performance and enhances its position in the minds of customers.
To further promote its financing role for business development of customers and create a driving force for the provincial economic restructuring, what key solutions will Vietcombank Vinh Long focus on?
First, Vietcombank Vinh Long will focus capital on industries, especially high-tech industries and enterprises with export factors that have yet to access cheap capital to purchase raw materials for production, and enterprises engaged in freight transport and logistic services. Second, the branch will take advantage and bring into full play soft loan packages to right SMEs and companies that apply high technology to production. Third, it will support businesses to learn and use transparent and effective financial management methods according to international standards, thus increasing their accessibility to funding sources from the world's support funds through the Vietcombank system. Fourth, it will remove and simplify procedures of transforming the business form from an individual business household to a corporate entity when borrowing at Vietcombank. Fifth, Vietcombank Vinh Long will actively approach FDI firms in order to attract foreign currency so as to coordinate foreign currency funds for the province's economy.
In addition to its high performing business, how does Vietcombank Vinh Long focus on social security, employee care and corporate culture?
Since its presence in Vinh Long, Vietcombank Vinh Long has always paid special attention and made practical contributions to social security. Every year, the branch deducts a part of its profit to launch meaningful programs such as presenting houses to people with sacrifice to the revolutionary cause, building a kindergarten in Tan My commune, Tra On district at a cost of VND 10 billion; funding VND260 million scholarships to poor students with Vinh Long Television; sponsoring 75 houses, worth VND3 billion, for the poor in Vinh Long province; funding VND12.5 billion for building Phu Quoi High School; funding VND1 billion to buy beds for Vinh Long General Hospital; and presenting computers, worth VND500 million, to Nhan Binh Secondary School.
In addition, Vietcombank Vinh Long takes great care of its employees’ livelihoods. We all try to have the best remuneration policies. With the spirit of Vietcombank human culture, Vietcombank Vinh Long's employees always stand with each other for sustainable development, for a green, strong and growing Vietcombank.
Source: Vietnam Business Forum