2019 credit growth lowest in 5 years

By Quynh Trang   January 2, 2020 | 07:43 pm PT
2019 credit growth lowest in 5 years
An employee counting money at a bank in Ho Chi Minh City. Photo by VnExpress/Anh Tu.
Vietnam’s banking sector recorded a credit growth of 13.5 percent year-on-year in 2019, the lowest since 2014.

In 2019, the banking sector had injected nearly VND8.1 quadrillion ($349.3 billion) into the economy, Governor of the State Bank of Vietnam Le Minh Hung said.

There had been a "positive shift" in the credit structure that provides strong support to economic growth, with a large proportion of loans going to priority areas such as the agricultural sector, which by 2019-end accounted for VND2 quadrillion ($86.26 billion), up 11 percent year-on-year, according to the SBV.

VND1.5 quadrillion ($64.69 billion) went to small and medium enterprises, up 16 percent year-on-year.

According to the central bank, by the end of 2019, the internal non-performing loan (NPL) ratio of Vietnam’s banking sector was 1.89 percent. The SBV estimates that banks recovered over VND1 quadrillion ($43.13 billion) worth of bad debts from 2012 to 2019.

The SBV has set 2020 credit growth at 14 percent, the same as 2019. The figure was 14 percent last year.

go to top