As of September 20, credit growth at 11.02% compared to the same period of 2016 – a high growth rate in recent years (the growth rate at 2016 was 10.46% and in 2015 was 10.78%). Credit growth is mainly for the purpose of business and production. Meanwhile, lending for some priority fields are also increased compared to the same period of 2016. Specifically, credit growth for agriculture and rural development at the end of August is 1.2 trillion VND, up 17% compared to the same period of 2016, and contributing to 20.2% of the total credit growth of the economy.
The State Bank of Vietnam.
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With regard to interest rate, SBV has instructed credit institutions to be actively implementing solutions to reduce costs and expenses, increasing efficiency in operation to reduce interest rate for priority fields. Results from implementing consistently solutions, credit institutions has reduced 0.5% per year of the interest rate for short term loan in priority fields.
Besides, credit institutions also reduce interest rates for purpose of business and production with a decrease of 0.5 – 1% per year, reducing interest rate for some mid term and long term loan programs in priority fields from 8% per year (previously was 9 – 10.5% per year). Credit institutions also implement credit package for short term, mid term and long term with preferential interest rate for essential sectors in the economy, applying interest rate in short term for qualified customers of 4 – 5% per year. At the same time, credit institutions also reduce expenses as part of the effort to reduce interst rate, and support enterprises in accordance with the instructions of the Prime Minister and the SBV. At present, the average interest rate for priority fields is as follow: short term 6-6.5% per year, mid and long term 8 – 10.5% per year; for production and business, at 6.8 – 9% per year for short term; 9.3 – 11% per year for mid and long term.
Restruturing is continue to be improved consistenly in the first 9 months of 2017 by the SBV, which focus on: Implementing the resolution of the National Assembly on pilot dealing with non-performing loans and the project “Restructuring credit institutions in related to non performing loans in period 2016 – 2020”, which focuses on restructuring weak credit institutions.
The Vietnam Asset Management Company (VAMC) has put up effort in implementing solutions to deal with non performing loans. As such, from January 1 to September 15, VAMC has bought debt of 14 credit institutions at the value of 20,619 billion VND for the original amout of 20,995 billion VND, which achieve the target in 2017 of the SBV. As such, since 2013 to September 15, VAMC has bought 26,108 debts of 16,197 customers at 42 credit institutions at the value of 266,543 billion VND for the original amount of 296,550 billion VND.
