Banking credit edges up in Q1

By Quynh Trang   April 7, 2024 | 06:35 pm PT
Banking credit grew by 1% to VND13.79 quadrillion (US$552.4 billion) in the first three months of 2024, according to the State Bank of Vietnam.

Outstanding loans at many lenders have grown by 3-5%, deputy governor Dao Minh Tu said at a conference Friday.

"After two months of negative credit growth, this is a sign that the economy is absorbing capital."

The central bank is always ready to provide ample funds to the market and use monetary policy when necessary, he said.

He added that the banking system can meet the credit growth target of 14-15% for the year.

Tran Hoai Nam, deputy CEO of private lender HDBank, said his bank’s outstanding loans have grown by 6% this year to VND20 trillion.

HDBank has been actively lending to agriculture, manufacturing and construction and green projects in the first quarter, he added.

Commercial loans have increased by nearly 7%, she said.

ACB reported 3.7% credit growth in the first quarter.

Loans to businesses rose by 3.5%, with textile and agricultural firms, exporters and importers being the main borrowers, it said.

Most banks are lending at 6-9% interest rates.

But despite the low interest rates, businesses remain hesitant about borrowing.

To Thi Tuong Lan, deputy general secretary of the Vietnam Association of Seafood Exporters and Producers, said while fisheries exports are rising and businesses need loans in U.S. dollars, the strengthening of the currency makes them less inclined to borrow.

Meanwhile, 70% of real estate businesses and property developers face legal issues, according to Le Hoang Chau, chairman of the HCMC Real Estate Association, said.

Solving them would help promote credit to the property sector, he added.

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