HCMC – Credit in Vietnam recovered in mid-August, expanding by 6.25% compared to the end of last year, according to data from the State Bank of Vietnam.
This rebound comes after a slowdown in July, when total outstanding loans across the economy rose by 5.66%, below June’s figure of 6.1%.
Experts believe that credit demand will continue to grow in the coming months, which could lead commercial banks to expand their lending as the year progresses.
The Institute of Economics and Finance noted that reduced pressure on exchange rates and the possibility of the central bank lowering interest rates could create more favorable borrowing conditions, thereby supporting businesses and boosting overall economic growth. Analysts predict that credit growth may meet or even exceed targets in the coming months.
A VPBank Securities report said that credit growth in the first half of this year was on track, aided by Vietnam’s GDP growth of 6.93% in the second quarter and 6.42% in the first half of the year.
The recovery of the tourism sector and growth in manufacturing, with the purchasing managers’ index (PMI) reaching 54.7 points at the end of Q2, contributed to this performance. Robust foreign direct investment and trade activities also played a significant role.
However, challenges persist. Vietnam’s credit growth remains heavily dependent on the real estate market which has been lackluster in recent years. By the end of June, outstanding real estate loans totaled VND3.08 quadrillion, accounting for 21.4% of total credit, according to VPBank Securities.
