Credit in Nghe An province is experiencing positive growth.
In the first five months of the year, credit mobilization and lending in Nghe An province showed good growth. Interest rates remain stable, creating favorable conditions for production, business, and consumption.
Mobilization and lending showed good growth.
According to the State Bank of Vietnam, Region 8, as of April 30, 2025, mobilized capital in Nghe An province (excluding the Development Bank) reached VND 287,070.47 billion, an increase of VND 16,617 billion, or 6.14%. Mobilization in Nghe An accounted for 59.6% of the total mobilized capital in Region 8 (including Nghe An, Ha Tinh, and Quang Binh).
As of May 31, 2025, mobilized capital (excluding the Development Bank) in Nghe An increased by 7.26% compared to the beginning of the year and by 1.05% compared to the previous month. The total outstanding loans of credit institutions and their branches in Nghe An are estimated to have increased by 6.6% compared to the beginning of the year and by 1.2% compared to the previous month. Non-performing loans accounted for 1.63% of the total outstanding loans.
At BIDV Phu Dien Bank, in the first six months of the year, deposits reached VND 10,762 billion, an increase of 13%; loan growth reached VND 12,750 billion, a decrease of 1% due to customers repaying loans seasonally during the agricultural and sugarcane seasons.
Mr. Nguyen Tien Phuong, Director of BIDV Phu Dien Branch, stated: "Up to this point, we have achieved our deposit mobilization target for the entire year of 2025. In 2025, the bank aims for a 10% credit growth, reaching a loan balance of VND 14,860 billion. With the lending cycle concentrated towards the end of the year, we are confident we will achieve our set target."
Assessing the lending and deposit situation in the province, a representative from the State Bank of Vietnam, Region 8, stated that deposits in Nghe An province have increased by 7.26% since the beginning of the year, compared to only 3.9% in the same period last year. Similarly, lending has increased by 6.6%, compared to only 3.9% in the same period last year. Lending has maintained positive momentum in the first five months of the year amidst low interest rates, facilitating production, business, and stimulating consumption. This is also a solution for Nghe An to maintain its GRDP growth target of 10.5% for 2025, as stipulated in Government Resolution 25.
Implementing credit programs as directed by the Government, the Prime Minister, and the State Bank of Vietnam in each period, banks in Region 8 have intensified the implementation of credit programs for the agricultural, forestry, and fisheries sectors. As of April 30, 2025, the outstanding loan balance of the Program was VND 307.8 billion.
Regarding the credit program for social housing, worker housing, and renovation and reconstruction of old apartment buildings under Government Resolution No. 33/NQ-CP, currently in the provinces of Region 8, the People's Committee of Nghe An province has announced a list of 4 projects that meet the legal conditions to access loans under Resolution No. 33/NQ-CP (3 projects in Nghe An, 1 project in Ha Tinh). Commercial bank branches in Nghe An have been actively approaching and receiving loan applications from investors, and to date, there have been no outstanding loans from the 120,000 billion VND package.
The outstanding loan balance for the National Target Program on New Rural Development in Nghe An as of April 30, 2025, is VND 104,793 billion, accounting for 56.8% of the total outstanding new rural development loans in Region 8.
Outstanding loans to cooperatives and cooperative groups in Nghe An province amount to 134 billion 393 million VND.
Maintain stable interest rates.
In order to provide timely loans to support people and businesses in expanding production and business, the State Bank of Vietnam's Nghe An branch continues to implement the State Bank's regulations on interest rates, directing credit institutions in the area to maintain stable deposit interest rates and reduce costs to lower lending interest rates. At the same time, it monitors the implementation of the published average lending interest rates, the difference between average deposit and lending interest rates, lending interest rates for credit programs and packages, and other types of lending interest rates.
Strict adherence to the State Bank Governor's regulations on interest rate management has prevented any instances of unfair competition or exceeding interest rate ceilings by credit institutions in the area. The maximum interest rate for VND deposits with maturities under 6 months, demand deposits, and deposits with maturities under 1 month is 0.5%/year; for deposits with maturities from 1 month to under 6 months, it is 4.75%/year; and for people's credit funds and microfinance institutions, it is 5.25%/year. The maximum short-term lending interest rate in VND for certain priority sectors is 4%/year.
Mr. Nguyen Dinh Sinh, General Director of Minh Anh Garment Joint Stock Company, said: "With the government's policy, businesses have recently received support in terms of interest rates. As a garment manufacturer, we need to stockpile raw materials, supplies, and pay workers' salaries and bonuses, which requires better access to capital. Businesses hope that banks will base their decisions on cash flow to increase access to capital, in preparation for the peak production and business season at the end of the year."
Specifically: Interest rates for VND deposits are 0.1-0.5% per year for demand deposits and deposits with maturities of less than one month; commonly 4.5-5.5% per year for deposits with maturities from 6 months to less than 12 months; commonly 5-6% per year for deposits with maturities of 12 months or more; USD deposit interest rates are 0% per year for deposits from organizations and individuals; short-term VND lending interest rates are commonly 5.5-7.5% per year, medium and long-term rates are commonly 8-10% per year. Short-term USD lending interest rates are commonly 3.5-5% per year; medium and long-term rates are commonly 5-6.5% per year.
Since the beginning of the year, short-term loans have had interest rates of only around 5% per year, while medium and long-term loans have been around 7% per year, considered "cheap capital". Mr. Nguyen Tien Phuong, Director of BIDV Phu Dien branch, stated: "With low-interest credit policies and the dynamism of credit institutions in accessing and meeting capital needs for markets such as real estate, consumer goods, manufacturing, and business, especially those sectors that are driving forces of the economy, credit will continue to grow well in the coming months."
To achieve the set targets in mobilizing capital for credit growth, credit institutions in Nghe An province are currently proactively developing and implementing solutions to reduce costs and lower lending interest rates; increasing access to capital for businesses and people; implementing solutions to support businesses and people affected by natural disasters; and continuing to deploy credit packages that adequately and promptly meet the capital needs for production, business, and serving the legitimate living and consumption needs of people and businesses.
According to the credit growth cycle, most loan capital is usually concentrated in the third quarter and concentrated in the last months of the year, so it is estimated that outstanding loans will increase significantly, achieving the set credit growth target. Banks are striving to increase credit growth while controlling credit quality and promoting bank-business connection programs...
