Total outstanding loans in Vietnam’s economy were estimated at VND12.32 quadrillion ($523.9 billion) as of June 15, a year-on-year increase of 8.94 per cent, according to the State Bank of Vietnam (SBV).

Credit was focused on prioritized production and trade sectors that make contributions to the country’s GDP growth, Deputy SBV Governor Dao Minh Tu told a press briefing on June 21.

The central bank has set a target of 14-15 per cent credit growth for this year.

It has governed credit in an appropriate manner to help control inflation and support economic growth, Mr. Tu said.

In the first half of this year it cut interest rates four times, by 0.5 to 2 per cent per annum. It has also continued to encourage credit institutions to cut costs to stabilize lending interest rates and aid business recovery and development.

Deposit rates at commercial banks currently stand at around 5.8 per cent per annum and lending rates on VND loans at about 8.9 per cent, down 1 per cent since the end of 2022.