State Bank of Vietnam directs banks to boost Region 14 credit and reallocate funding as outstanding loans reach VND 387.35tn

The State Bank of Vietnam (SBV) published Governor Nguyen Thi Hong’s guidance from a conference on accelerating bank credit to support economic growth in Region 14, covering Can Tho and the provinces of Hau Giang, Vinh Long, Soc Trang and Bac Lieu. The SBV signalled it will shift funding from other parts of the country to areas facing local funding shortages in the Mekong Delta, while directing banks to expand lending with stable interest rates and controlled risks. As of end-February 2025, outstanding credit in Region 14 was estimated at VND 387.35tn, up 0.42% from end-2024, below the nationwide credit growth rate of 0.8%, and representing around 2.46% of total economy-wide outstanding credit. Locally mobilised funding meets about 77% of credit growth needs in the region. Operationally, banks were instructed to stabilise deposit rates, cut costs and increase the use of information technology to lower lending rates; channel credit into production and business activities, priority sectors and growth drivers; and closely control lending to potentially higher-risk sectors. Credit institutions were also asked to build sector-specific credit products and increase lending to feasible key projects and to firms and households involved in producing, processing, purchasing, storing and exporting key products such as rice and seafood, while SBV units and banks record business feedback on interest rates, collateral and access to credit. The SBV also issued staffing decisions for the Region 14 structure, appointing Tran Quoc Ha as acting director and naming Ly Nhat Truong, Le Thanh Tien, Tran Van Duong and Ho Canh Liem as deputy directors of SBV Region 14.