Capital flows directed to priority sectors

With the aim of maintaining its role as the economy’s lifeline, the State Bank of Vietnam (SBV) has tasked banks with reducing costs, cutting lending rates to support production and business activities and ensuring credit growth remains safe and effective.

The production line of IFC Vina Plastic Packaging Materials Joint Stock Company in Thuan Thuanh industrial park 2.

Credit has been prioritised for key sectors driving economic growth. In Bac Ninh, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) system has taken the lead in implementing government, provincial and SBV policies.

Currently, the total outstanding loans of the five Vietcombank branches in the region (Bac Giang, West of Bac Giang, Bac Ninh, Kinh Bac, and South of Bac Ninh) have reached nearly 60 trillion VND (2.6 billion USD).

Nguyen Thi Thu Huong, Deputy Director of Vietcombank Bac Ninh, said the branch has approved and disbursed hundreds of billions of VND in new loans for businesses and residents to expand production this year.

As of June 30, its total outstanding loans stood at more than 22.6 trillion VND, up 757 billion VND from the end of 2024, ranking first among Vietcombank branches in Bac Ninh by loan volume.

Recognising capital as the foundation for business operations, the Bank for Investment and Development of Vietnam (BIDV) Bac Giang Branch has also rapidly appraised applications and disbursed loans.

According to Ung Viet Anh, Deputy Director of BIDV Bac Giang, in 2025 the bank will continue to lead in providing capital for business development through various preferential credit packages and support programmes.

The branch plans to further adjust interest rates to enhance accessibility for customers. By the end of June, its total outstanding loans reached over 14 trillion VND, an increase of 2 trillion VND compared to the end of last year.

Besides state-owned commercial banks, many joint-stock commercial banks and credit institutions in Bac Ninh have allocated capital to meet the needs of all economic sectors, focusing especially on priority and key sectors to create impetus for provincial development in the new phase.

Credit expansion drives economic growth

Recent SBV reports show lending rates remain low. The average short-term lending rate in VND for priority sectors is around 3.9% per year, lower than the SBV’s ceiling of 4% per year.

The average lending rate for new loans has dropped by 0.64 percentage points to 6.24% per year. Banks are expected to continue reducing rates in coming months to further support businesses and households.

Nguyen Manh Tuan, Director of Phong Phu BN Paper Co. Ltd in Vo Cuong ward, specialising in industrial paper processing, said the company has secured an 11.5 billion VND working capital loan from Vietcombank Bac Ninh at a favourable interest rate of 5.1% per year.

“This suitable rate and loan limit are key for us to expand production, increase revenue, and stabilise employment for workers,” he noted.

According to Ta Thanh Long, Director of SBV Region 12 Branch, Bac Ninh is a dynamic economic zone with strong industrial, trade-service and urban development, making major contributions to national GDP growth, foreign investment attraction and employment generation.

The branch has been simultaneously pushing credit flows into the economy while ensuring banking safety. Credit institutions have been urged to implement effective support solutions, applying digital transformation to accelerate loan processing while ensuring operational safety. Banks have also been strengthening connections with businesses to promptly identify and resolve challenges.

In the first six months of 2025, Bac Ninh’s credit sector recorded a breakthrough, with total outstanding loans exceeding 350 trillion VND, a 14.7% rise from end-2024, the fastest growth rate in five years. Notably, the bad debt ratio remains at just 1.2%, below the SBV’s allowable ceiling.

A combination of government directives to boost lending for production, cautious yet flexible monetary policy management, and decisive actions by banks has enabled balanced growth in both capital mobilisation and lending activities. This positive credit outlook is seen as a strong lever for the province’s economic expansion.

The investment of over 350 trillion VND in credit is expected to become a driving force propelling Bac Ninh’s economic growth trajectory in 2025. As the local economy undergoes robust transformation, credit capital will continue accompanying businesses on their development journeys, contributing to overall socio-economic advancement in the province.

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