Khanh Hoa Province:

Credit growing safely and effectively

In 2023, banking industry of Khanh Hoa Province maintained growth momentum, successfully completed the tasks and promptly deployed monetary and credit policies, thereby actively supporting the recovery and local economic development.

The highlight of the Khanh Hoa banking industry in 2023 was maintaining stable outstanding loan growth, ensuring credit quality, and strengthening capital supply connections for businesses. According to Luong Phan Sang - Director of Vietcombank Khanh Hoa Branch, the branch's loan balance in 2023 reached 17,884 billion VND, an increase of 15.9% compared to 2022, higher than the increase of the entire Vietcombank system (an increase of 10.6%% compared to 2022) and higher than the growth rate of Khanh Hoa banking (up 14.39%).

The branch's credit structure has changed in the direction of increasing the proportion of wholesale outstanding debt and reducing the proportion of retail debt. Remarkably, Vietcombank - Khanh Hoa Branch signed a loan grant for Hyundai Vietnam Shipbuilding Co., Ltd. with 2,600 billion VND, and signed a loan grant for Van Phong Electric Co., Ltd. with 140 million USD. In 2023, the State Bank (SBV) - Khanh Hoa Branch organized 3 conferences connecting banks and businesses, thereby supporting more than 207 billion VND in loans for 34 individuals and businesses in the province. In addition, Vietinbank Khanh Hoa committed to lending 145 million USD to Sumitomo Group (Japan); BIDV Khanh Hoa funded a loan for Hyundai Vietnam Shipbuilding Company Limited with 42 million USD...

Transaction at a bank

Looking back at the past year, we can see the great efforts of the entire banking industry to reduce bad debt in the context of many difficulties in the world and domestic economies. Thanks to that, in 2023, the branch controlled bad debt well, ensuring credit quality with the bad debt only accounting for 0.51% of the branch's total outstanding debt. According to data from the State Bank of Khanh Hoa Branch, by the end of 2023, the industry's bad debt ratio was only 2.02%, within the safe threshold.

According to a report of the State Bank of Khanh Hoa Branch, by the end of 2023, capital mobilization in the whole province reached 119,810 billion VND, increasing by 10,499 billion VND (9.6%) over the figure at the beginning of the year. Loan balance reached 130,941 billion VND, rising by 16,469 billion VND (14.39%) compared to the beginning of the year. Loan sales for the whole year reached 180,515 billion VND, an increase of 17.4% compared to 2022. Credit capital focused on production and business sectors, especially priority areas of the Government. Outstanding loans to priority subjects by the end of 2023 reached VND 70,348 billion, accounting for 53.72% of total outstanding loans.

Mai Hoang

Translated by T.T