Despite showing positive signs in May 2024, credit growth in the banking system reached around 2.41% in the first five months of 2024 while the target set by the State Bank of Vietnam (SBV) for this year is 15%. The SBV has issued a directive urging credit institutions to accelerate lending to help achieve a 5-6% increase in credit by the end of Q2/2024. JANUARY-MAY CREDIT GROWTH Even though the SBV set the full-year credit growth target at 15% right from the beginning of this year, data showed that the banking system reported negative credit growth in the first two months. Credit growth only returned to positive territory in March, reaching 0.26% by the end of Q1/2024. This low growth rate not only indicates the difficulties in expanding credit for businesses and individuals but also reflects a partial offset of the spike in credit growth in the last month of 2023. By the end of last month, it is estimated that credit growth reached around 2.41%, with an average growth rate of about 1% per month in April and May. Thus, while Q1/2024 saw the lowest credit growth rate in many years (even lower than in 2020, the year of […]
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