Vietnam credit growth could reach 9% by year-end: C.bank
By the end of August, the credit growth was estimated at only 4.75%, but rose to 6.1% one month later, indicating improvements in enterprises’ access to credit.
Vietnam’s credit growth could reach 8 – 10% in 2020, and a growth rate of 9% or above is feasible, according to Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.
|SBV's Deputy Governor Dao Minh Tu (standing) at the press conference. Source: SBV.|
By the end of August, credit growth was estimated at only 4.75%, but reached 6.1% one month later, indicating improvements in enterprises’ access to credit and also the positive performance of the economy, said Mr. Tu at a monthly government press briefing in early October.
While the Covid-19 pandemic has caused severe impacts on the economy and led to a modest credit growth pace of 3.26% in the first six months of this year, the result so far has been a welcoming sign, stated Mr. Tu.
In the January – September period, credit in agricultural sector and exports expanded by 5% and 7% year-on-year, respectively. Even the fields worst affected by the pandemic, including manufacturing and processing, electricity production and distribution, wholesale and retail, among others, have recorded credit growth rates higher than the average ones, he added.
According to Mr. Tu, a high credit growth rate also showed enterprises have been more flexible and adaptive to the current crisis, as they are willing to look for new loans despite struggling with previous debts.
For the remaining months of the year, Mr. Tu said the central bank is committed to pushing for higher credit growth and supporting economic expansion.
Among measures proposed by the SBV, Mr. Tu urged commercial banks to continue restructuring payment schedule for current debts, waiving and freezing interest rates.
Since the beginning of the year, the SBV has lowered its interest rate caps four times, the moves which have encouraged commercial banks to provide loans at lower interest rates.
The SBV considered policy rate cut an important solution to boost credit growth in the coming time, Mr. Tu asserted.
- Global minimum tax set to take effect in Vietnam in 2024
- Vietnam’s local bond market hits US$109 billion: ADB
- Vietnam not a currency manipulator, says US Treasury
- ADB, SBV joint efforts to support digital banking in Vietnam
- Hanoi Cashless Streets to foster digital transactions
- Vietnamese Government considers extending VAT reduction to mid-2024
- The Green Economy Forum 2023 to take place in November
- Greening finance accelerates Vietnam's SDG implementation
- DHL Express partners with ACB to cut carbon emissions using sustainable aviation fuel
- Vietnam joins the ASEAN Regional Payment Connectivity
Hanoi plans to relocate more universities
Vietnam news in brief - December 4
Vietnam’s e-commerce market set to hit US$20.5 billion
Diwali vividly celebrated in Hanoi
AI to help Hanoi accelerate smart city development
Data mining drives smart city building: vice chairman
Planning essential to promote smart city development
Amended Capital Law to develop Hanoi’s cultural industries
Vietnam advised to use cultural heritage as material for creative industries