2019 credit growth lowest in 5 years

By Quynh Trang   January 3, 2020 | 10:43 am GMT+7
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.

 
 
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