Perfecting credit activities of commercial banks to promote economic restructuring in the Southeast region towards industrialization and modernization

On the other hand, commercial bank credit activities also contribute to the transformation of the regional structure of the economy. To ensure sustainable economic development, it is always necessary to maintain a reasonable economic correlation between regions, such as between urban and rural areas, between plains and mountains, between production and consumption regions. Normally, there are always quite large differences between economic regions in terms of industry structure, resource structure, technology use structure, production and consumption structure.

This structure will change when credit is involved through the process of changing the structure of financial resource allocation between regions and within each region. In fact, this is illustrated quite clearly through the role of credit in the formation of concentrated and decentralized industrial parks, in the preservation and development of traditional craft villages in rural areas, and in the formation of specialized areas in agriculture.

Fourth, commercial bank credit activities contribute to expanding and strengthening foreign economic relations and international exchanges, creating conditions to promote rapid economic restructuring towards industrialization and modernization.

The development of credit activities does not only stop at the domestic level but also strengthens cooperation to expand to the international level, thereby expanding and developing foreign economic relations, contributing to solving socio - economic problems in the development process of each country, creating conditions for countries to get closer together and cooperate for development.

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Furthermore, commercial bank credit activities also contribute to increasing import-export turnover and expanding the goods market to the international scope. Thanks to bank credit capital, export enterprises purchase, process export goods, and deliver goods on schedule; Enterprises can import modern machinery and equipment, invest in technological innovation to continuously improve product quality.

contributing to improving the competitiveness of goods and expanding the consumption market, promoting the increase of import and export sales. On the other hand, bank credit capital also creates conditions for import and export goods according to market requirements to be carried out regularly and continuously, increasing the dynamism of the economy, stabilizing the market, serving the target programs of socio-economic development and promoting the economic restructuring in the right direction.

Thus, bank credit activities have contributed to expanding and opening up foreign markets. This is an important issue, the basis for determining the direction of production associated with the economic restructuring towards industrialization and modernization, in accordance with the needs of the market with a strong focus on exports, while effectively replacing imports.

Fifth, bank credit capital contributes to building infrastructure, creating conditions for enterprises to improve their competitiveness, apply new science, technology and techniques to production and business activities to promptly meet the requirements of economic restructuring.

In the context of an economy increasingly integrating into the world economy, competition among enterprises is increasingly fierce. Meanwhile, the technical infrastructure of the economy still has many shortcomings, not meeting the needs of development in a timely manner. On the other hand, most of our enterprises are small in scale, with accumulated capital still too low, not capable of reinvesting to expand and improve competitiveness and production capacity. To improve that situation, it is necessary to continue to increase capital investment. For that reason, bank credit capital not only participates in the production and business process of enterprises in the form of supplementing working capital, but also invests medium and long-term capital to build advanced and modern technical infrastructure for the production process. Bank credit capital contributes to exploiting the potential resources of each region, creating a driving force to promote rapid economic restructuring towards industrialization and modernization.

1.3. BANK CREDIT ACTIVITIES WITH PROMOTING ECONOMIC STRUCTURAL TRANSFORMATION IN SOME COUNTRIES IN THE WORLD AND EXPERIENCE LESSONS FOR VIETNAM

Industrialization and modernization of the country in the context of international integration is to thoroughly and strongly promote the economic restructuring. The economic restructuring is both an indicator to assess the quality of economic growth and a reflection of the nature of the industrialization process. In order for the economic restructuring to shift in the right direction, countries intervene in credit activities to direct investment capital into key sectors and fields. Therefore, researching and clarifying theoretical and practical issues related to bank credit activities in promoting economic restructuring is of great significance, especially in the context that we are promoting the industrialization and modernization of the country and in the context of international economic integration.

1.3.1. China's experience

China is a country with many similarities with Vietnam in terms of natural conditions, economy, culture, and society. After nearly 30 years of reform and opening up, China has achieved great achievements, turning the country into a major economy in the world, from a backward manufacturing base to the "world's factory", from a mainly self-sufficient economy to an economy accounting for 10% of the world's foreign trade turnover [55].

To achieve results in the country's construction, the Chinese Government has proposed a correct socio-economic development strategy, in which the goal of shifting the economic structure towards industrialization and modernization is quite reasonable and appropriate. The economic structure is adjusted to focus on developing key industries, consumer goods industry, high-end goods industry, electrical and electronic industry with a focus on machinery and equipment production.

serve agriculture, promote agriculture and improve the rural socio-economic landscape. Build special economic zones, open coastal cities and coastal economic zones. Promote the advantages of localities, promote regional economic development and rationalize the national economic structure according to the unified planning direction of the State.

In order to promote the rapid transformation of the economic structure towards industrialization, modernization and rationality, China has used many positive and effective solutions, in which the credit activities of commercial banks play an important role in mobilizing and effectively using capital for development investment and economic restructuring. The development direction of commercial banks and other financial institutions in the agricultural and rural areas. Focusing on investment capital for comprehensive development of agriculture, forestry and fishery, in which special priority is given to food production, focusing on medium and long-term capital investment for industrial and service development in rural areas. Thereby promoting the restructuring of the industry while creating conditions for the restructuring of the labor force in rural areas.

On the other hand, credit capital of commercial banks has also been invested in key industries and economic zones to exploit comparative advantages such as: mechanics, electronics and telecommunications, special economic zones, and coastal cities.

To mobilize and effectively use capital for structural transformation towards industrialization and modernization, China has focused on the following solutions:

- Using deposit interest rates flexibly and flexibly: for China, deposit interest rates are not only an important tool for commercial banks to mobilize capital but also a tool to regulate the economy.

- Diversify financial and monetary institutions, reform and enhance the competitiveness of commercial banks: China has continuously expanded and improved its network of commercial banks and its banking and financial sector.

China is mainly operated by four banks: Bank of China, China Construction Bank, Industrial and Commercial Bank of China and Agricultural Bank of China with branches spread across China, receiving over 67% of people's savings and lending 61% of total credit. In particular, the Chinese government also focuses on and encourages domestic and foreign commercial banks to expand their operating networks to rural areas and particularly difficult areas to create conditions for all classes of people to access bank credit capital. Therefore, a large amount of idle money of the people is exploited by commercial banks and basically meets the capital for investment to promote economic restructuring.

In addition, to enhance the competitiveness of state-owned commercial banks, China has reformed the state-owned commercial banking system by injecting more money into the four banks above, and establishing asset management and settlement companies (AMCs) to buy back bad debts. In addition, China encourages foreign banks to contribute capital to domestic banks to take advantage of knowledge and technology transfer, allowing foreign banks to open branches, representative offices of foreign banks, 100% foreign-owned subsidiaries and joint venture banks, thereby improving service quality and meeting diverse capital sources for the country's industrialization and modernization.

- Diversifying forms of capital mobilization: along with perfecting traditional forms of mobilization, China has focused on investing and applying new, modern forms of mobilization to enhance the capital mobilization capacity of commercial banks. In addition, to meet capital needs for economic restructuring, commercial banks in China have also expanded the mobilization of medium and long-term capital, increased borrowing, mortgage loans and issued bank bills abroad.

1.3.2. Korean experience

Entering the early 60s of the 20th century, Korea began to industrialize. To solve the difficulty in capital sources for development investment, contributing to promoting the rapid shift of economic structure from traditional agriculture to modern industry, the Korean Government intervened in banking activities through specific policies and measures such as:

- Developing and diversifying the financial and banking system to promote the process of capital creation for industrialization. In addition to banks, the Korean government also allowed the establishment of non-bank financial institutions such as insurance companies, trust organizations, short-term finance companies and stock markets. Therefore, the deposit/GDP ratio increased from 18.5% in the period 1965-1970 to 30.2% in the period 1971-1973 [51]. In addition, to facilitate foreign capital flows into the country, banks acted as guarantees. Since 1966, commercial banks have joined the Korea Development Bank (KDB) and become active members in large-scale foreign loan guarantee activities. Since the 1960s, the Korean government has established specialized banks in areas that private commercial banks have not yet undertaken to participate in credit activities, such as: Industrial Bank (MIB) and Citizens National Bank established in 1961, People's Bank established in 1963, and in 1967, two more banks were established: Korea Foreign Exchange Bank (KEB) and Korea Housing Bank. Therefore, in the period from 1962 to 1971, capital accumulated from domestic sources in total investment increased from 25% to 60.9% and the investment ratio in total national income increased from 15% to 25% [ 21 ].

- The government directs credit allocation by directing commercial banks to invest credit in companies, corporations, industries and activities that prioritize exports. The Bank of Korea, as the central bank, is responsible for controlling capital allocation and support activities.

for industry and export. The Government and the Bank of Korea lend to specialized banks such as the Industrial Bank, the People's Bank, the Housing Construction Bank, etc., and this is the main source of capital for the operations of these banks. Loans and capital allocated to support industry and export are closely monitored and managed by the Monetary and Financial Management Council headed by the Minister of Finance.

Entering the period of 1982-1995, the Korean government determined the goal of industrialization and modernization to move towards high-end industries to further diversify products and export markets. During this period, the Korean government did not use the method of allocating accumulated capital and other resources to create a planned industrial structure as before, but let market demand decide the formation of a new industrial structure, abolishing loans under subsidy policies to avoid overinvestment in some inefficient industries and not to create imbalances in investment. In order to promote the liberalization of capital circulation, the government privatized 5 commercial banks, and at the same time reduced barriers to the use of credit by foreign banks. Therefore, it increased competition in the field of capital allocation and improved the efficiency of capital use.

After the 1997 financial crisis, in order to improve the financial concentration capacity and ensure credit efficiency, contributing to promoting the rapid economic transformation towards industrialization and modernization, Korea reformed the system of commercial banks and financial institutions. Commercial banks with weak financial status or insolvency were closed, merged or temporarily nationalized. During the period from June 1997 to June 1999, Korea closed 17 merchant banks, five commercial banks and more than 100 other non-bank financial institutions; the government had to intervene in 4 commercial banks; merged 9 commercial banks, 2 merchant banks to create 4 new commercial banks. By 2001, the two leading commercial banks in Korea were Housing & Commercial

Bank and Koomin Bank merged to form the largest bank in Korea and ranked 60th in the world [23, pp.71-72]. In addition, Korea also privatized banks that had difficulty in payment. In addition to domestic individuals and organizations being allowed to buy these organizations, Korea also allowed foreign investors to participate in the purchase. Allowing foreign investors to participate in the privatization of some commercial banks has created an open playing field and promoted strong competition in the financial and banking sector; many management practices, credit services and modern banking technologies have been applied...

1.3.3. Singapore's experience

Singapore is a country with a high growth rate in the process of industrialization and modernization. It can be said that this is the most successful country in the process of industrialization and modernization and currently Singapore is a country belonging to the newly industrialized countries (NIEs) of Asia. To achieve these successes, the Singaporean Government has attached great importance to developing the financial and banking system to mobilize and provide capital to accelerate the process of economic restructuring towards industrialization and modernization.

The Singapore banking system includes the Singapore Monetary Authority, commercial banks, commercial banks - services, savings banks, finance companies, and various funds. Of which, the Singapore Monetary Authority was established by the Ministry of Finance in 1971 to supervise financial institutions and implement monetary policies. The remaining financial institutions play a very important role in mobilizing and effectively using capital sources for industrialization and modernization. These institutions include:

- The Monetary Authority of Singapore (MAS) was established in 1971, with the role of stabilizing the currency, promoting and managing credit activities, managing and setting conditions for currency business. In addition, this agency also has the function of supervising the activities of other financial institutions, to ensure compliance with the prescribed operating conditions;

Perfecting credit activities of commercial banks to promote economic restructuring in the Southeast region towards industrialization and modernization - 8

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