Total outstanding credit in Ho Chi Minh City stood at VND3.828 quadrillion ($150.448 billion) by the end of November, an increase of 1.14% compared to the previous month, thus bringing the 11-month growth rate to 8.1% compared to the end of 2023, and 12.5% compared to the same period last year.

According to Mr. Nguyen Duc Lenh, Deputy Director of the State Bank of Vietnam (SBV) branch in Ho Chi Minh City, the credit growth trend in the city in recent months aligns with the overall growth trend of the economy.

In this process, the demand for capital for production, business, trade, services, and consumption has increased, becoming the main factor driving credit growth in the final month of the year, he emphasized.

Credit has best met the capital needs for import-export production and business activities, contributing to the positive growth of these activities, he added.

Accordingly, outstanding foreign currency credit has returned to positive growth in October and November. Specifically, it increased by 3.14% in November. The stable exchange rate and increased demand for foreign currency for import-export production and business activities are the main factors influencing the growth of foreign currency credit in the last months of the year in the city.

According to Mr. Lenh, capital absorption capacity is typically better in the last months of the year due to increased aggregate demand. Economic activities serving holidays and Tet (Lunar New Year) often have a need for short-term capital, with fast turnover and efficiency. Therefore, the demand for credit capital also increases rapidly and capital is used more effectively.

This is a fundamental factor, cyclical in nature, and has a seasonal element that boosts credit growth, he said.

Given these conditions and with a credit growth rate of 12.5% in the first 11 months compared to the same period last year, credit in the city is expected to achieve double-digit growth by the end of the year, and be consistent with the city's (projected) GRDP growth of 7.17% in 2024.