C.bank expects credit growth to exceed 12%-target for 2021
Demand for credit may increase sharply since the second quarter, especially in fields of industrial production, exports, trade and tourism, said a senior official of the central bank.
In case the Covid-19 pandemic is contained and the rollout of vaccination programs remains effective, Vietnam’s credit growth may hit 14% year-on-year for 2021, exceeding the original target of 12%.
|Transaction at a branch of Vietcombank in Hanoi. Photo: Cong Hung|
This is among the three scenarios for credit growth set up by the State Bank of Vietnam (SBV).
In a less optimistic scenario when the pandemic would persist until June, along with social distancing measures in place and prolonged vaccination, the credit expansion is expected to be around 10-12%.
And for the last scenario with the pandemic staying serious until the end of the year, the credit growth may be in range of 7-8%.
Director of SBV’s Credit Department for Economic Sectors Nguyen Tuan Anh said as of March, credit growth reached by 2.3% against late 2020, significantly higher than the 1% rate recorded in the same period last year.
“Demand for credit may increase sharply since the second quarter, especially in fields of industrial production, exports, trade and tourism,” said Anh, adding this comes from strong recovery of growth driving forces such as domestic consumption, exports, FDI inflows and public investment.
KB Securities Vietnam (KBSV) in its latest report expected the credit growth to be around 12-14%, which came from strong economic recovery and current low-interest rate environment.
“Capital mobilization rate has reached its bottom in early 2021, and is on track to rise up in the second half of the year,” it added.
For greater efficiency in credit expansion, banking expert Nguyen Tri Hieu suggested more solutions are needed to stimulate credit demand, saying “many enterprises are not seeking loans at the moment.”
Meanwhile, banks should ensure customers to have financial capabilities to repay their debts, as this is a key step to maintain credit quality.
- Rising credit demand puts pressure on Vietnam's economy
- Visa, Google and banks launch Google Wallet today
- NA agrees to raise basic wage next July
- Vietnam excluded from US Treasury's monitoring list
- Vietnam’s Govt committed to supporting sustainable corporate bond market
- Vietnam’s budget revenue in 10 months exceeds year’s target
- Policy rate hike necessary to stabilize foreign exchange market: Central Bank
- Some 245 million e-invoices issued in Hanoi in nine months
- Vietnamese Government urged to raise base salary 6 months in advance
- Real estate transactions urged to be conducted via banks
Building a creative city with thousand-year cultural identity
Hanoi Tourism Ao Dai Festival 2022 to be held next week
Library of antique books and newspapers for Hanoi lovers
Green growth an inevitable trend for Vietnam: PM
It's imperative for Hanoi to develop public transport: Experts
Calligraphy exhibition praises traditional cultural beauty of the nation
Australia funds electric vehicle infrastructure in Vietnam
Hanoi: Asia's Leading Tourism Destination 2022
Director Dang Nhat Minh honored with film on Hanoi lives