Credit Market in Dong Nai province becomes more attractive

Indovina Bank launches its branch in Dong Nai

 Especially, Bank for Agriculture and Rural Development (Agribank) took top position in the provincial banking sector with total deposits of individuals and businesses amounting to over VND 4,000 billion due to efficient operation of branch banking system with province-wide network. Dong Nai based Foreign Trade Bank (Vietcombank) placed second with total savings mobilized amounting to about VND 1,955 billion. Besides, total deposits mobilized by local branches of other banks such as the Bank for Investment and Development (BIDV), the Bank for Industry and Commerce, the Mekong Housing Bank (MHB) and the Bank for Industry and Commerce located in Bien Hoa industrial zone recorded at levels significantly higher than 2004. In which, MHB and BIDV saw faster growth than other State-run commercial banks in Dong Nai.

On the other hand, non-state commercial banks in Dong Nai province grew rapidly over the past year. Dai A Rural Joint Stock Bank held the leading position among Dong Nai’s non-state commercial banks with total mobilized capital of over VND 549 billion and total savings mobilized surpassing VND 434 billion, a nearly 47 percent increase over 2004. The branch of Viet-Thai joint venture VinaSiam Bank recorded a 168.33 per cent increase in total mobilized capital compared to 2004 and a nearly 338 per cent year-over-year increase in mobilized savings. Deposits of individuals mobilized by the branch of the Asian Development Bank (ADB) was more than five times higher than that of 2004 and deposits of businesses also increased more than 4.7 per cent year over year. The year 2005 has witnessed great achievements of non-state commercial banks in Dong Nai province. These banks are now expanding their presence in the province.

Provincial commercial banks continue to compete in the local market

To present, Dong Nai has 14 non-state and state-run commercial banks (including Social Policy Bank). In 2005, these commercial banks lent over VND 27,000 billion with total debit balance of around 13,235 billion, of which state-run commercial banks lent more than VND 24,339 billion and their total debit balance reached nearly VND 12,000 billion. Although joint stock commercial banks were opened in Dong Nai not long ago, they has quickly expanded the operating area and affirmed their reputation at here. In 2005, loan turnover of three non-state commercial banks increased 100 per cent, that of two others was up 90 per cent and that of VinaSiam bank recorded fourfold increase compared to 2004. Meanwhile, loan turnover of state-run commercial banks was between 50-66 per cent higher than that of 2004. This showed that non-state commercial banks were developing strongly in Dong Nai while state-run ones seemed to be more cautious about lending medium and long-term funds. 

In 2006, total mobilized capital and total debit balance are targeted to increase by 20 per cent over the previous year. The target was set by the provincial banking sector has not yet matched the ambitious targets for sustainable economic growth and social development in the province. However, director of the provincial State bank Nguyen Thi Thom affirmed that Dong Nai’s commercial banks would continue to maintain third-place in the national banking system.  

(Source Dong Nai Newspaper)