Vietnam posts H1 credit growth of 7.33 pct

By Hung Le July 5, 2019 | 04:36 pm PT

An employee holds stacks of cash for counting at a bank in Vietnam. Photo by VnExpress/Anh Quan.

Credit grew 7.33 percent in the first half of 2019, slightly higher than 6.14 percent in the same period last year, according to the central bank.

Growth was high this period due to credit expansion in prioritized sectors such as processing, manufacturing and export industries, Le Minh Hung, Governor of the State Bank of Vietnam (SBV) said.

Loans outstanding in the pork industry stood at about VND51 trillion ($2.19 billion), of which VND1.2 trillion ($51.6 million) was restructured for borrowers affected by the ongoing swine flu epidemic.

"We have directed banks to restructure debt, reduce interest rates and offer new loans to serve production for these areas," Hung said.

The SBV has set a 14 percent credit growth target for this year. The focus of new loans would be priority sectors such as manufacturing, agriculture and small and medium enterprises, according to the central bank.

Last year, Vietnam recorded credit growth of 14 percent, the lowest rate since 2014.