The State Bank of Vietnam (SBV) will continue taking measures to monitor and ensure the operational safety of credit institutions and strengthen inspections on credit for potentially risky areas.

It a recent report sent to the National Assembly (NA), the SBV said it will continue supervising the growth of outstanding loans and the quality of credit for high-risk fields such as real estate, securities, consumption, and corporate bond investments.

Some 40 credit institutions invested over VND205 trillion ($8.54 billion) in corporate bonds in the first seven months of this year, down 14.7 per cent year-on-year, according to the SBV.

Bond investments accounted for only 1.67 per cent of the total outstanding balance, lower than the 2 per cent recorded at the end of 2022.

As of July 2023, credit in the securities sector made up 0.55 per cent of the total outstanding debt of the economy, an increase of 62 per cent from the end of 2022. Investment in low-risk securities (mainly government bonds) accounted for 82.7 per cent of the total, up 72.7 per cent.

Meanwhile, real estate credit increased nearly 5 per cent compared to the end of 2022, accounting for 21.73 per cent of the country’s total outstanding debt.