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Monday, July 22, 2024

HCMC’s credit growth remains slow in H1

The Saigon Times

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HCMC – Outstanding loans in HCMC from January to June reached over VND3,300 trillion, up a slight 3.5% compared to December last year and 7.1% year-on-year, according to the HCMC branch of the State Bank of Vietnam (SBV).

The credit growth rate in the city during the first half of this year is only one-third of the rate recorded in the same period last year, which was 9.3%, indicating a stagnant demand for loans in the city’s economy.

Data of the SBV’s HCMC branch showed that nearly 30% of Vietnam’s total loans were made in HCMC. Around VND200 trillion has been lent to small- and medium-sized enterprises, exporters, and agricultural, supporting, and high-tech businesses.

These loans are primarily short-term loans in Vietnamese dong with interest rates below 5.5% per year, aimed at supporting businesses and industries that are considered drivers of economic growth.

On the other hand, interest rates for foreign currency loans remain low. Outstanding loans in foreign currency have reached around VND177 trillion, mainly provided to businesses engaged in import and export activities.

As part of the bank-business connectivity program, banks have introduced preferential credit packages for 47,846 customers, amounting to VND283 trillion. Additionally, they have reduced interest rates by 50 to 150 basis points for all customers.

Banks said that they will focus on key issues such as ensuring the quality of growth, maintaining credit quality, expanding and enhancing banking services, strengthening competitiveness, and improving management and administrative efficiency.

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