Building Vinh city into a regional financial and banking center

DIVERSIFICATION OF FINANCIAL SERVICES

After 5 years of implementing the project to develop Vinh city into the center of the North Central region in the period of 2014 - 2020, the banking and finance sector has developed strongly. Currently, the banking network of Nghe An includes 1 State Bank branch in Nghe An province, 101 credit institutions, level 1 credit institution branches with a variety of types of credit institutions.

There is also a branch of the North Central Deposit Insurance, operating for the benefit of depositors, coordinating with the State Bank in monitoring the safety of credit institutions. The head office system of commercial bank branches is mainly concentrated in Vinh city, the infrastructure serving payment activities is strongly developed with 260 ATMs, with 1,390 POS.

Transaction at a bank in Vinh city. Photo: Thu Huyen

Mr. Cao Van Hoi - Deputy Director of the State Bank of Nghe An branch said: To achieve that result, we have implemented many solutions such as encouraging and creating favorable conditions for credit institutions to establish and open branches and transaction offices in the area; directing units in the area to diversify and promote the use of new and modern payment means and services, diversify products and services and protect consumers in the banking sector to attract people and businesses to use banking services, increase mobilized capital, and create a basis for promoting credit granting.

The system of credit institutions also simplifies loan procedures, creating favorable conditions for customers to access bank credit while still meeting State management requirements for lending activities.
During their operations, credit institutions also focus on expanding credit to priority areas, including agriculture, rural areas, exports, supporting industries, small and medium enterprises, and high-tech enterprises.

Credit institutions also focus on expanding credit to businesses. Photo courtesy

Through the bank-business connection programs, the banking system in the city has also coordinated with relevant departments and branches to increase the provision of information on economic development projects in the North Central region to approach and move towards investment and lending. In addition, the State Bank branches have directed units in the area to actively contact the head office to be able to participate in co-financing for major projects in the North Central region.

CONTINUE TO DEVELOP THE CREDIT SYSTEM

Financial and banking services continue to develop rapidly, with an increasingly expanding network, diversified service types, and improved service quality, meeting people's service needs; an important capital channel to help distribute and circulate goods and provide commercial, financial, and tourism services, etc. for Nghe An province in particular and the North Central region in general.

By June 30, 2019, the mobilized capital of the whole area is estimated at 129,133 billion VND, compared to the beginning of the year, an increase of 8,502 billion VND, equal to 7.1%. With the above results, in the first 6 months of the year, Nghe An banking industry is expected to exceed the 2019 growth plan of Nghe An province (the 6-month growth scenario is 6-7%). Total outstanding debt of credit institutions in the whole area is estimated at 203,135 billion, compared to the beginning of the year, an increase of 10,590 billion VND, equal to 5.5%.

City residents withdraw money at ATMs. Photo: Thu Huyen

Vinh City currently has 6,173 enterprises and 22,000 business households operating in the area. In addition to providing credit to serve the people and businesses in the area, local banks also expand their operations, provide capital and banking services for projects outside the area to meet the capital needs for production, business and daily life of people and businesses in the area.

The financial, credit and banking sectors have developed in terms of network, service products and outstanding loan growth, significantly supporting production and business activities. However, apart from the State Bank branches, commercial banks, insurance companies, securities companies, accounting and auditing companies... mostly exist in the form of representative offices and dependent branches, without a head office (except for Bac A Commercial Joint Stock Bank).

Vinh city belongs to the planning of the South Nghe An - North Ha Tinh region (approved by the Prime Minister in Decision No. 2082/QD-TTg dated November 21, 2011), including Cua Lo town, districts: Nghi Loc, Hung Nguyen, Nam Dan, Thanh Chuong, Nghe An province and Hong Linh town, districts: Nghi Xuan, Duc Tho, Huong Son, Ha Tinh province; with a total area of ​​about 3,648 km².

Vinh City is aiming to become the economic and cultural center of the North Central region. Photo: Thanh Cuong

This is a comprehensive economic zone that plays a driving role in the North Central region with the main economic sectors developing in the two provinces of Nghe An and Ha Tinh. Therefore, developing banking and finance in both quantity and quality, taking shortcuts to meet the needs and development trends is an urgent requirement. According to the city leaders, there are currently no "large-scale" financial companies or corporations in the area.

Therefore, in the coming time, the city encourages the continued development of the credit and banking system in the direction of diversifying service types: auditing, insurance, financial consulting... building regional-scale stock exchange centers and real estate exchange centers; promoting administrative reform, creating a favorable and transparent business environment to attract resources, creating the premise for the formation of a complete market.

From there, attract large domestic and foreign banks, financial companies, insurance companies, and securities companies to set up branches in Vinh city to meet the capital needs for production, business, and consumption activities of people in the region.