HCMC – Vietnam’s banking sector injected nearly VND120 trillion, equivalent to around 1% of total outstanding loans, into the economy during the final week of September.
As of September 29, total credit in the economy had expanded by 6.9% compared to the beginning of the year at VND12.7 quadrillion. This growth surpasses the State Bank of Vietnam’s (SBV) initial forecast for for the entire year, which was 6.1-6.2%.
Data indicated a notable surge in credit growth within just nine days. In the year to September 21, total credit had grown by only 5.9%. However, in the subsequent nine days, an additional 1% was added, equivalent to about VND120 trillion.
The SBV had set a credit growth target of 14-15% for 2023. Despite the recent acceleration, credit growth until the end of the third quarter has reached only half of the annual target.
The sluggish credit growth has raised concerns among authorities, leading to multiple meetings between the Government and the central bank to explore ways to stimulate the economy, including capital injection.
The SBV has made four consecutive adjustments to reduce key interest rates, resulting in an average interest rate decrease of around 1% compared to the end of 2022.
In the real estate sector, banks have been directed to relax credit conditions for developers and homebuyers who meet specific criteria. This initiative aims to improve capital turnover and liquidity in the real estate market.
Moreover, the Government has introduced a VND120 trillion program to support social housing and worker accommodations. BIDV and Agribank have signed credit agreements to finance three social housing projects in Phu Tho, Quang Ninh, and Bac Ninh provinces, with a disbursement of VND82.7 billion.
Source: The SaigonTimes