Credit growth in the first 10 months of 2024 is estimated at 10.08%, moving closer to the full-year target of 15%. Approximately VND670 trillion might be injected into the market in the final two months of the year to support economic growth. However, this credit expansion is accompanied by significant pressures on liquidity and deposit interest rates. Credit needs to expand by 4% in final two months From January to October 2024, credit grew by 10.08% year-on-year to VND1.37 quadrillion. To achieve the 2024 credit growth target of 15%, an additional VND670 trillion should be lent out in the remaining two months of the year. The credit growth rate in January-October of 2024 is comparable to 2019, slightly below 2022 levels, but higher than in 2020, 2021 and 2023. However, 15% annual credit growth has not been seen since 2018. This underscores the significant effort required across the banking system in the remaining months to meet the goal. If the target is achieved, the banking system will have provided over VND2 quadrillion to the economy in all of 2024, reaffirming credit as a vital source of funding for production and business operations. This is particularly crucial as other funding channels […]
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