Credit growth at nearly 6% in Jan-May
In the year to end-May, credit growth was recorded at 5.74% against the same period last year, mainly going to production and business activities and priority sectors as required by the Government, according to the State Bank of Vietnam (SBV).
At a meeting on June 6 on the banking sector’s performance in the first few months of the year, Nguyen Quoc Hung, director of SBV’s Credit Department, said that loans to the export sector had increased 13%; hi-tech enterprises, 14.33%; small and medium firms, 5.04%; agriculture and rural development, 5%; and supporting industries, 4.11%.
During the period, liquidity and interest rates at credit institutions were stable. Lending rates ranged from 6% to 9% for short-term loans and from 9% to 11% for medium- and long-term loans, said SBV deputy governor Nguyen Thi Hong.
Regarding bad debts, from 2012 to the end of March this year, credit institutions settled VND907.3 trillion (US$38.9 billion) worth of bad debts. The figure was VND163.1 trillion in 2018 alone.
Since the beginning of the year, SBV has asked banks to deploy solutions to create easier access to loans for individuals and enterprises and reduce black credit.
For the rest of the year, the central bank will continue improving credit quality, increasing credit in the property sector and for production and business activities and tightening credit for sectors bearing high risks.