Tag: Credit

Total outstanding loans reach nearly VND4.1 quadrillion (over $157 billion).

Credit concentrated on production, business, trade, services, tourism and export-import activities.

Total outstanding tourism credits reaching VND57 trillion ($2.2 billion) by the end of February.

The city's banking-business connection initiative has helped more enterprises gain access to credit.

Prime Minister issues directive to bolster carbon credit oversight amid climate commitments

Meeting held following a request from the Prime Minister over concerns about limited access to credit by some businesses.

Circular reportedly makes it problematic for businesses to access credit.

Local banks meeting liquidity requirements and offering low interest rates for loans will enjoy an increase in their credit growth cap.

At a discussion session on October 28, many National Assembly (NA) deputies said it is necessary to adopt solutions to restore Vietnam’s corporate bond and securities markets as soon as possible, to ease the pressure on credit. In particular, the government needs to closely monitor interest rates at banks, so that sectors carrying out production and business can access credit at an appropriate cost.

Ms. Duong Thuy Dung, Senior Director of the Valuation, Research, and Consulting Department at CBRE Vietnam, said that more than 50 per cent of investors have problems with loans for real estate investment. If they continue to borrow, the cost will increase greatly. They want to sell but are unable to do so. If credit is not loosened by 2023, the real estate market will see a sell-off and prices will fall.

The State Bank of Vietnam (SBV) has officially adjusted the credit limit for four banks - Vietcombank, HDBank, MB, and VPBank - in a bid to support weak credit institutions under government policy. An additional VND83.5 trillion ($3.49 billion) will be injected into the economy following the move. The credit growth limit at 18 banks has now reached 13.6 per cent.

A negative deposit-credit gap and the State Bank of Vietnam’s withdrawal of money have tightened liquidity in the banking system. Interbank VND rates have skyrocketed. The overnight interest rate on October 4 was up to 7.74 per cent per annum, or 2.58 percentage points higher than in the middle of last week. Deposit interest rates are expected to continue to increase in the near future.

At a press conference announcing results in the banking industry in the third quarter of 2022, Ms. Ha Thu Giang, Deputy Director of the Credit Department for Economic Sectors at the State Bank of Vietnam (SBV), said that as of September 16, credit in the economy had increased 10.47 per cent compared to the end of 2021 and 17.19 per cent year-on-year.

Deputy Prime Minister Le Van Thanh has signed Directive No. 13/CT-TTg dated August 29, 2022 on a number of solutions to promote the safe and sustainable development of the real estate market. While requesting that real estate credit not be unreasonably tightened, the government also directed management agencies to strengthen supervision over lending.

The VND270 trillion ($11.5 billion) in bonds approaching maturity combined with the impact of shrinking credit lines are creating a great deal of concern at banks. The State Bank of Vietnam has also said that bad real estate debts are showing signs of increasing rapidly, reaching more than VND36 trillion ($1.5 billion) as of June 30, up 5 per cent compared to the end of 2021.

The Governor of the State Bank of Vietnam (SBV) has issued an action plan for the banking industry to implement the “Restructuring the system of credit institutions associated with bad debt settlement in the 2021-2025 period” project. The project clearly states the action plan for the banking industry on matters such as handling bad debts, improving credit quality, and boosting the financial capacity and operational efficiency of the Vietnam Asset Management Company (VAMC).

Conference attendees discuss the real estate market and offer their opinion as banks tighten credit for real estate business.

The United States International Development Finance Corporation (DFC) is to provide a $200 million loan to SeABank to help it improve its financial capacity and better implement projects, focus on the credit gap, and resolve shortfalls between the financial needs of the market and available funds in the economy.

Credit increased in line with economic recovery in the opening months of 2022 and focused on production and business, ensuring capital for development, according to State Bank of Vietnam Governor Nguyen Thi Hong. However, it is necessary to be cautious over inflationary risks and bad debt risks. As of May 31, credit had increased 8.04 per cent since the end of 2021 and 16.94 per cent over the same period of 2021.

Credit in the first quarter rose 5.04 per cent compared to the end of 2021 and 15.9 per cent year-on-year. The rise in credit led to an increase in the Interbank Offered Rate (IBOR). As of early April, the IBOR had increased over 2 per cent per annum for nine consecutive weeks, doubling since the end of 2021 and 5-6 times higher year-on-year.