June bank credit surpasses previous 5 months’ aggregate

By Quynh Trang July 9, 2024 | 06:33 pm PT

An employee counts Vietnamese banknotes at a bank in Hanoi. Photo by VnExpress/Giang Huy

Banks lent VND480,000 (US$18.88 billion) in June, higher than their total lending in the first five months, indicating a rising demand for credit.

Prime Minister Pham Minh Chinh had instructed banks to lend more to ensure credit growth reaches 5-6% for the year by the end of the June.

In the event, the growth was 6% as loans outstanding rose to VND14.4 quadrillion.

Financial data provider FiinRatings said demand for credit would rise in the latter six months of the year thanks to a recovery in economic growth.

GDP growth in the first half was 6.4%, much higher than the 6% forecast.

Strong industrial production and an increase in imports of feedstock and other inputs showed businesses would need increased funding to keep their operations running this year, FiinRatings said.

As some legal knots that had the hamstrung the property market are untied thanks to changes in laws, there would be stronger growth in lending to this sector, it added.