PM urges banks to aid key economic sectors

Prime Minister Nguyen Xuan Phuc, right, awarded the First-class Labour Order to VietinBank at the ceremony marking its 30th founding anniversary.-Photo VNA/VNS

The PM made the statement at an event marking the 30th anniversary of the establishment of the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) in Ha Noi on Sunday.

He said sectors such as agriculture, high-tech application, exports, support industries, start-ups and small- and medium-sized enterprises were particularly important to support.

Noting the achievements of VietinBank, the Prime Minister affirmed these would drive the lender on in the future, though this would "not be easy, even more difficult and no less complicated than the past 30 years."

Phuc requested VietinBank to continue to improve itself, enhancing financial capacity and banking management capacity in line with international standards, strengthening investment in research and development, and building skilled human resources, especially focusing on morality.

“It’s necessary to expand and upgrade the quality and diversification of banking and financial services in line with customers’ needs and trends,” said Phuc.

Speaking at the ceremony, Governor of the State Bank of Viet Nam Le Minh Hung said from now to 2020, the tasks of the banking industry and VietinBank in particular were a heavy burden.

Hung said the most important goal for VietinBank was to strive to become a large-scale and the best operating bank in Viet Nam by 2020, capable of competing with large banks in the region.

“VietinBank should promote the role of a State-owned bank, taking the lead in implementing guidelines and policies, ensuring the stability and safety of the monetary market as well as focusing on loans for priority areas with reasonable interest rates,” said Hung.

The bank should simplify operational procedures and cut costs to help businesses and people better access credit and banking services at reasonable interest rates, he added.

Hung also directed VietinBank to complete the restructuring plan for 2018-20 on time and implement a roadmap to raise capital and improve equity, ensuring that by the end of 2020 its equity would meet capital standards and minimum capital adequacy ratios.

“It’s necessary to control and improve the quality of assets, especially the quality of credit, to reduce the bad debt rate to below 3 per cent by the end of 2020, and give priority to credit for key industries,” said Hung.

Chairman of VietinBank Le Duc Tho said with Viet Nam’s banking sector entering a new stage of development, commercial banks faced many changes, requiring VietinBank to implement strategies with innovative solutions.

He said VietinBank would continue restructuring to develop strongly, diversifying its business structure and improving financial and competitive capacity.

“We will promote the development of hi-tech products and services, build and perfect the organisational structure as well as management and administration mechanism according to the modern banking model. We will also continue perfecting and developing the core values ​​of VietinBank culture, implementing social security, building VietinBank effectively, safely and sustainably," said Tho.

From a unit renting a head office in the past with a small network, VietinBank now has a system including a headquarters, seven subsidiaries, 155 branches and nearly 1,000 transaction offices nationwide. In the international market, VietinBank has opened two branches in Germany, a wholly-owned bank in Laos and a representative office in Myanmar.

By the end of 2017, VietinBank’s total assets reached VND1.1 quadrillion (US$47.06 billion), up 1,500 times compared with its assets 30 years ago.

Pre-tax profit growth was high at an average annual rate of 22 per cent, and total pre-tax profit in the period of 2013-17 was more than VND40 trillion, up 1.5 times from 2008-2012.

In 30 years of operation, the bank has paid nearly VND37 trillion to the State budget and sent more than VND7 trillion to charity programmes and social security. It has for many years been in the top 10 businesses contributing to the State budget.

At the ceremony, on behalf of leaders of the Party and State, Prime Minister Phuc awarded the First-class Labour Order and the Government’s Emulation Flag to VietinBank.