Since the beginning of the year, amid the context of the economy still facing numerous difficulties, the production and business activities of enterprises have not yet recovered strongly, the banking sector in the province has proactively and flexibly implemented many solutions, resolutely removed obstacles, and actively accompanied the people and enterprises. The positive credit growth results have affirmed the efforts of the entire sector in contributing to stabilizing and promoting local economic growth.

Bank staff guiding customers to make transactions

As a leading bank in the province, since the beginning of the year, Phu Yen Agribank has synchronously deployed business tasks, determined to complete the assigned targets of mobilization growth, outstanding loans, service revenue, etc. “Thanks to the efforts of the staff and employees in the unit, by the end of the first quarter of 2025, Phu Yen Agribank's capital mobilization increased by 5.3%, outstanding loans increased by 2.1%, bad debts continued to be controlled within the permitted threshold, ensuring credit safety, which is a positive result; because in the same period last year, the branch still recorded a decrease in outstanding loans in the first two quarters,” said Mr. Phan Thong Thai, Director of Phu Yen Agribank.

Not only Phu Yen Agribank, since the beginning of 2025, credit institutions in the province have closely followed the direction of the central and local governments to implement many solutions to ensure safe, effective and sustainable banking operations, along with improving credit quality, controlling bad debts, meeting capital needs for production and business of people and enterprises in the area. At the same time, it’s to continue to implement support policies and preferential credit programs of the Government, contributing to local economic growth.

Therefore, during the first 3 months of this year, the total outstanding credit balance in the province reached VND 56,641 billion, an increase of 2.88% compared to the end of 2024, 2.3 times higher than the same period last year. Credit continues to focus on production and business, priority areas such as rural agriculture, small and medium enterprises, supporting industries, and exports. By the end of March 2025, outstanding loans to priority subjects reached more than VND 31,376 billion, accounting for more than 55% of total outstanding loans; an increase of VND 717 billion, an increase of 2.34% compared to the end of 2024.

According to the State Bank of Vietnam, Region 10 branch, in the first quarter of 2025, although Phu Yen achieved the highest outstanding loan growth rate among the provinces in Region 10, this remained lower than the outstanding loan growth rate of the whole country (3.93%). Part of the reason is that, although the province's economy has shown signs of recovery, there has not been a clear breakthrough, leading to limited demand for loans from people and businesses. Currently, the number of businesses in the province with outstanding loans of more than VND 100 billion can be counted on the fingers of hands. Many businesses proactively approach banks but then do not borrow more because they do not have a new production and business plan or are considering investment efficiency.

Representatives of other commercial banks also said that currently, banks have proactively “come to every alley, knocked on every door” to introduce products and services, bringing credit closer to the people. In many rural areas, bank staff go down to villages, hamlets, and densely populated areas to introduce credit policies and provide appropriate loan advice. However, finding customers who meet the conditions and have a need for loans is not easy.

This is also the general situation of the banking sector in the provinces in Region 10. “Although local banks have actively implemented solutions to increase credit growth, the growth rate of outstanding credit in this region is still lower than the overall growth rate of the whole country. The main reason is that the production and business situation of enterprises and people is facing difficulties; many enterprises have reduced or stopped operations, so they do not have the need to borrow capital. In addition, some customer groups have the need but do not meet the conditions for obtaining capital loans due to limited financial capacity and lack of feasible business plans,” said Mr. Bui Huy Tho, Director of the State Bank of Vietnam, Region 10 branch.