Tag: credit growth

As of July 28, total outstanding loans increased 9.64% compared to the end of last year.

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 loans estimated at over VND3.94 trillion ($153 million).

Overall credit growth stood at 11.12% year-on-year as of November 22.

Total outstanding loans reaching over VND3.78 quadrillion ($148 billion).

Total outstanding loans estimated at $149 billion.

Measures to be taken to reduce lending interest rate.

Credit in June marking the highest increase against previous months.

Credit programs in support of businesses' production and trade.

Credit growth targeted at 14-15% for 2023.

Stabilized macro-economy and inflation control behind growth.

Local banks continue to take measures to help businesses address the difficulties.

A recent report from the Agribank Securities Company (Agriseco) noted that the banking sector will face challenges maintaining profit growth in 2022 and 2023 at levels recorded in 2020 and 2021. Growth has declined amid insufficient space for credit growth, while Net Interest Margins (NIM) face pressure from rising deposit rates as lending rates prove difficult to increase.

A recent banking report from VnDirect shows that the State Bank of Vietnam (SBV) has loosened credit limits on 18 banks. Sacombank now has the highest limit, at 4 per cent, followed by MB and Vietcombank with 3.2 per cent and 2.7 per cent, respectively. TPBank, Eximbank, and LienVietPostBank also received adjustments. The SBV prioritized banks with a healthy credit structure in extending limits. According to VnDirect, total credit growth is estimated at 13 per cent by the end of the year following this adjustment; close to the 14 per cent target set by the central bank.

The State Bank of Vietnam (SBV) set a credit growth target of 14 per cent for 2022 at the beginning of the year. SBV Deputy Governor Dao Minh Tu has said that as of the end of August, credit growth had reached 9.91 per cent; high compared to the same period last year. With more than 4 per cent remaining, the central bank will assign new targets to banks in the next few days.

Data from the State Bank of Vietnam shows that as of the end of August, total credit at credit institutions in Ho Chi Minh City stood at over VND3.1 quadrillion ($132 billion), up 0.4 per cent compared to the end of July and 11 per cent compared to the end of 2021.

According to Viet Dragon Securities (VDSC), with lending rates on the rise, tightening credit space may push rates even higher in the second half of the year. The State Bank of Vietnam could adjust its credit growth target to make it more in line with actual needs, and credit growth for the year as a whole could reach 16 per cent.

The Governor of the State Bank of Vietnam, Nguyen Thi Hong, issued a tough message on August 11 about the credit growth limit and stabilizing the macro-economy. She also said the SBV and the banking industry in general share the difficulties facing businesses and there are many policies in place to exempt and reduce interest rates and fees for businesses and individuals, totaling about VND50 trillion ($2.17 billion).

Figures from the General Statistics Office show that credit growth in 2022 as of June 20 stood at 8.51 per cent, much higher than the 5.47 per cent posted in the same period of 2021. Growth in banks’ capital mobilization, however, was only 3.97 per cent. The State Bank of Vietnam (SBV) expects credit growth to come in at 14 per cent for the year as a whole.